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Accounting Standards for Pension Plans

Improvements to Presentation and Disclosure of Investments for Pension Plans

Summary

The Accounting Standards Board (AcSB) has undertaken a project to improve presentation and disclosure of investments held by pension plans under Accounting Standards for Pension Plans in Part IV of the CPA Canada Handbook – Accounting.

This project will involve:

  • updating the requirements for fair value disclosures;
  • introducing disclosure requirements on interests in investment vehicles; and
  • amending the presentation and disclosure requirements for investment expenses.

Staff Contact(s)

Shalini Gupta, CPA, CA Principal, Accounting Standards Board

Phone number  +1 647 956 6628
Email address  [email protected]
Amanda Winter, CPA, CA Principal, Accounting Standards Board

Phone number  +1 416 204 3241
Email address  [email protected]

Project Status

  • Information gathering

    The AcSB conducted research and developed proposals to improve presentation and disclosure of investments held by pension plans

  • Approving project

    In December 2023, the AcSB approved a project to develop an exposure draft

  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement

On-demand Webinar – Domestic Accounting Standards Update (Fall 2023)

Watch our recorded webinar to learn about current projects and recent amendments in Parts II, III, and IV of the CPA Canada Handbook – Accounting. 

On-demand webinar
On-demand webinar

Webinar – Domestic Accounting Standards Update (Spring 2024)

Register for this webinar to learn about current accounting standards projects and recent amendments in Parts II, III and IV of the CPA Canada Handbook – Accounting. Join us for the English webinar on May 15, 2024, or the French webinar on May 16, 2024.

English
English

Meeting & event summaries

April 2, 2024

AcSB Decision Summary – March 5-6, 2024

The AcSB reviewed a proposed exposure draft that would amend Section 4600, Pension Plans, to improve the presentation and disclosure requirements related to investments held by pension plans. The proposals seek to make improvements in three areas: to improve the presentation and disclosure requirements related to investments held by pension plans. The proposals seek to make improvements in three areas:

  • fair value disclosures;
  • disclosures on interests in investment vehicles; and
  • presentation and disclosure of investment expenses

January 12, 2024

AcSB Decision Summary – December 13, 2023

The AcSB discussed feedback received from its Pension Plan Working Group regarding investment presentation and disclosure matters in Section 4600, Pension Plans. The discussion focused on proposed disclosure requirements on interests in investment vehicles and amended presentation and disclosure requirements on investment expenses.

The AcSB then approved a project proposal to amend Section 4600 to reflect these improvements as well as to update the requirements for fair value disclosures. The Board will explore and refine these proposals with the Pension Plan Working Group at its next meeting in February 2024.

October 12, 2023

AcSB Decision Summary – September 20-21, 2023

The AcSB discussed feedback from its Pension Plan Working Group regarding investment presentation and disclosure matters in Section 4600, Pension Plans.

The AcSB discussed options to improve the presentation and disclosure of investment expenses. The Board tentatively decided to require separate presentation of administrative expense categories between investment expenses and pension administration and other expenses. The Board also provided feedback on a proposed definition of investment expenses to be included in Pension Plans, paragraph 4600.05. The Board discussed options for disclosures related to investment expenses and tentatively decided that additional qualitative disclosure related to what is included in investment expenses would be useful to users.

In addition, the AcSB discussed ways to improve transparency on a pension plan’s interests in investment funds and other structured entities. The Board is considering introducing a principle-based requirement to disclose information that enables users to understand the nature and extent of a pension plan’s interests in these entities and the associated risks.

The AcSB will seek feedback on these potential solutions at its November 2023 Pension Plan Working Group meeting.

June 7, 2023

AcSB Decision Summary – May 24, 2023

The AcSB discussed feedback from the Pension Plan Working Group and research related to improvements to the disclosure of investment management expenses. The Board tentatively decided that improvements should be made to the disclosures related to investment management expenses in pension plan financial statements to increase transparency and comparability. The Board will seek additional feedback from the Pension Plan Working Group in July to obtain input on the nature of any proposed disclosures. 

In addition, AcSB members discussed that pension plans commonly hold interests in investment funds and other structured entities. As such, the Board is considering whether it may be useful to introduce disclosure requirements to improve transparency in this area. The Board will seek more feedback on this matter, including potential solutions at its Pension Plan Working Group meeting in July 2023.

April 25, 2023

AcSB Decision Summary – March 8-9, 2023

The AcSB also discussed disclosures for buy-in annuity contracts. In December 2022, Section 4600 was amended to introduce new measurement and disclosure guidance specific to buy-in annuity contracts. Those amendments are effective for fiscal years beginning on or after January 1, 2024, with earlier application permitted. Following the amendments, buy-in annuity contracts would no longer be measured at fair value, but rather at a value equal to the related benefit obligation adjusted for amounts receivable under the annuity contract that are not collectible. For investments that are financial instruments, paragraph 4600.32 requires pension plans to provide the disclosures required by IFRS 7 Financial Instruments: Disclosures as well as the fair value disclosures required by the Appendix to Section 4600. The Board thinks that, once the amendments take effect, paragraph 4600.32 disclosures may become less useful for buy-in annuity contracts. The Board will seek feedback from its Pension Plan Working Group in April 2023 and consider whether to amend the disclosure requirement in paragraph 4600.32 to scope out buy-in annuity contracts.