Section 4600 - Pension plans

Effective date:

January 1, 2011 except for subsequent amendments

Published by the AcSB:

April 2010

Overview

These standards apply to all pension plans, including defined benefit plans and defined contribution plans. They establish requirements for measurement, recognition, derecognition and presentation of information in general purpose financial statements of pension plans, as well as financial statement disclosures. Such financial statements provide information about the pension plan including net assets available for benefits and pension obligations. [Former paragraph 4600.01 retained in Archived Pronouncements.]

A pension plan is a reporting entity separate from a sponsor and the plan participants. These standards apply to pension plan financial statements prepared for participants as a group and for other interested parties. They do not deal with reporting to individual participants about their individual pension benefits.

One of the uses of general purpose financial statements of pension plans is to assess the ability of the pension plan to meet future benefit payments. Such financial statements cannot provide all the information that is needed to fully assess benefit security. In addition to pension plan financial statements prepared in accordance with these standards, participants may also need to review, amongst other things, actuarial reports, and to take into account the financial health of the sponsor. Such additional information is beyond the scope of these standards.

Some benefit plans have characteristics similar to pension plans and provide benefits other than pensions (for example, retiree health care and life insurance benefit plans, health and welfare plans providing benefits during active service, and long-term disability plans). These standards also apply to general purpose financial statements of such plans. However, certain adaptations may be necessary to take into account the specific nature of such plans.

History of Section 4600

Date

Development

Comments

April 2010

Part IV of the CPA Canada Handbook  issued

Effective for fiscal years beginning on or after January 1, 2011. Earlier application permitted.

August 2010

Removal of an inconsistency

Paragraph 25(a) has been amended and paragraphs 25A-25B have been added to permit a pension plan to present the details of investment income by type of investment either on the face of the statement of changes in net assets available for benefits or in the notes to the financial statements. These amendments address an inconsistency with the presentation of the details of investment assets and investment liabilities.

Effective for fiscal years beginning on or after January 1, 2011. Earlier application permitted.

November 2011

Fair value measurement amendments

The definition of fair value in paragraph 05(l) has been deleted and paragraph .19 has been amended to require a pension plan to follow the fair value measurement guidance of IFRS 13 Fair Value Measurement in Part I of the Handbook in determining fair value for its investment assets and investment liabilities. Consistent with this change regarding measurement, the recognition requirements in paragraph 18 have been amended to refer generally to either Part I or Part II of the Handbook. Paragraphs 38-39 have been amended and paragraphs 40-41 have been added to deal with a pension plan's transition to the amended requirements.

Prior to adopting the fair value measurement guidance in IFRS 13, a pension plan refers to the guidance on fair value measurement in IAS 39 Financial Instruments: Recognition and Measurement in Part I of the Handbook.

The amendments are effective for annual periods beginning on or after January 1, 2013. Earlier application of IFRS 13 is permitted provided that the pension plan discloses that fact and the measurement requirements are applied to the fair value of all investment assets and investment liabilities.

May 2012

Scope clarification

The definition of benefit plan in paragraph 05(g) has been amended to clarify that benefit plans providing benefits to employees during their active service are within the scope of this Section.

July 2012

Disclosure clarification

Paragraph 32(a)(ii) and an Appendix have been added to clarify that the fair value disclosures in paragraphs 27-27B of IFRS 7 Financial Instruments: Disclosures, that were deleted as a consequence of incorporating IFRS 13 Fair Value Measurement, into Part I of the Handbook will continue to be required for pension plans that have adopted the measurement requirements of IFRS 13.

December 2022

Amendments to Section 4600. See Completed Project.

On December 15, 2022, the AcSB issued these amendments to Section 4600. The amendments are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2024. Earlier application is permitted.

November 2023

 

2023 Annual Improvements to Accounting Standards for Pension Plans

 

On November 1, 2023, the AcSB issued the annual improvements to Section 4600. The amendment to paragraph 4600.32, issued in November 2023, apply to annual financial statements relating to fiscal years beginning on or after January 1, 2024. Earlier application is permitted.

 

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