Section 3462 - Employee future benefits

Effective date:

January 1, 2014 except for subsequent amendments 

Published by the AcSB:

May 2013

Reach out to our Section 3462 Specialists

Diana De Acetis


This Section establishes standards for the recognition, measurement, and disclosure of the cost of employee future benefits. It requires an entity to recognize the cost of retirement benefits and certain post-employment benefits over the periods in which employees render services to the entity in return for the benefits. Other post-employment benefits are recognized when the event that obligates the entity occurs.

This Section also applies to benefits earned by active employees and expected to be provided to them when they are no longer providing active service, pursuant to the terms of an entity's undertaking to provide such benefits.

History of Section 3462




May 2013

This new Section replaces Section 3461 Employee future benefits.

Effective for fiscal years beginning on or after January 1, 2014.

October 2015

Annual improvements

Clarifies when an enterprise can use a funding valuation to measure the defined benefit obligation for a defined benefit plan. Effective for fiscal years beginning on or after January 1, 2016. Earlier application is permitted.

November 2020

Amendment relating to use of a funding valuation. Refer to Completed Project.

This Section has been amended to: (i) clarify the measurement of the defined benefit obligation (DBO) for plans with a legislative, regulatory or contractual requirement to prepare a funding valuation; and (ii) remove the accommodation to allow the use of a funding valuation for defined benefit plans without a funding valuation requirement. The amendments are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2022. Earlier application is permitted but only for all of an enterprise's defined benefit plans.

Note: The above summary does not include details of consequential amendments made as the result of other projects.


Private Enterprise Advisory Committee Meeting Notes

  • September 11, 2018 - Provision for adverse deviations
  • October 6, 2015 - Implications of the recent mortality improvements on measurement of a defined benefit obligation
  • June 11, 2015 - 2015 Annual Improvements: Proposed amendments to Section 1582, 3051 and 3462, be approved as exposed
  • April 1, 2015 - Accounting for a refundable tax account in a retirement compensation arrangement
  • December 17, 2014 - Annual Improvements: Employee Future Benefits
  • September 16, 2014 - Amend Section 3462, Employee Future Benefits

Amendments under consideration

  • None

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