Financial Reporting

Accounting Standards for Pension Plans

Stay informed of new standards and recent changes to Accounting Standards for Pension Plans together with exposure drafts. Please also see the webinars, training courses and resources from the relevant standard-setting boards under the Resources tab for each item.

• Exposure Draft - Improvements to Presentation and Disclosure of Investments for Pension Plans
• Revised Standard – 2023 Annual Improvements to Accounting Standards for Pension Plans
• Revised Standard – Pension Plans

Revised Standard – 2023 Annual Improvements to Accounting Standards for Pension Plans

The AcSB revised Section 4600, Pension Plans to provide relief from disclosure requirements under paragraph 4600.32 for annuity contracts, commonly referred to as “buy-in” annuity contracts as these investments are not measured at fair value. The pension plan is only required to disclose the nature of these investments and the pension obligation amount that these investments offset.

Effective for annual reporting periods beginning on or after January 1, 2024, with early application permitted.

Revised Standard – Pension Plans

The AcSB Section 4600 to address the following:

• clarify that a statement of changes in pension obligations for defined contribution pension plans is not required
• provide guidance on determining the split or amalgamation for pension plans
• include guidance on the accounting for guaranteed annuity contracts (commonly known as “buy-ins” and “buy-out” annuity contracts
• clarify the presentation requirements for combination plans
• require additional risk disclosures for investments in master trusts

The amendments clarify areas of ambiguity in the standard and introduce new guidance in areas where no guidance currently exists.

Effective for annual reporting periods beginning on or after January 1, 2024, with early application permitted.

Exposure Draft - Improvements to Presentation and Disclosure of Investments for Pension Plans

The AcSB issued an exposure draft proposing to amend Section 4600, Pension Plans. The proposals aim to improve the presentation and disclosure of investments held by pension plans. The proposals would:

• require pension plans to provide the disclosures required by IFRS 13, Fair Value Measurement in Part I of the Handbook;
• introduce requirements to disclose the nature and extent of a pension plan’s interests in investment vehicles (other than master trusts) and the associated risks;
• amend the presentation of administrative expenses to include two categories – “investment expenses” and “pension administration and other expenses”;
• introduce a definition of “investment expenses” and require disclosure of the nature of investment expenses; and
• introduce qualitative disclosure requirements regarding what investment income types include embedded investment expenses and the details of those embedded investment expenses.

The comment period is closed. The Pension Plan Advisory Committee discussed feedback on the AcSB’s exposure draft and potential solutions to address key issues raised through the AcSB’s outreach activities at its October 2024 meeting. The AcSB deliberated the Exposure Draft feedback and considered input from the Committee at its November 2024 Board meeting. Final amendments are expected to be issued in 2025.

The AcSB discussed its priorities for Pension Plans following completion of this project at its September 2024 meeting. The AcSB is considering taking on a major project and in particular, is considering a project on accounting by hybrid pension plans and other benefit plans, beginning with research.

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