Accounting Standards for Pension Plans

Evaluating the Preface

Summary

As part of the AcSB’s 2022-2027 Strategic Plan, the AcSB committed to evaluating the CPA Canada Handbook – Accounting’s Preface to assess whether the applicability of each framework to each reporting entity category meets current needs.

The AcSB will work to identify the types of entities that are directed by the Preface to apply an accounting framework and explore if their financial reporting needs are adequately met. If not, the Board will also explore alternative options and consider if changes to the Preface are needed.

At its February 2025 Board Meeting, the AcSB discussed research related to its Evaluating the Preface project and decided that no changes to the Preface are needed at this time. As a result, the Board decided to conclude work on its Evaluating the Preface project. The Board issued a document in May 2025 summarizing the results of its research and its rationale for concluding the project.

Staff Contact(s)

Jamie Goodman, CPA, CA Principal, Accounting Standards Board

+1 416 204 3294

[email protected]

Lauren Pennycook, CPA, CA Principal, Accounting Standards Board

+1 416 204 2950

[email protected]

Project Status

Information gathering

AcSB completed research on the Preface of the CPA Canada Handbook – Accounting and decided to conclude its Evaluating the Preface project.

The Board issued a Project Summary with research results and its rationale for concluding the project.

Project Summary
Approving project
Engaging communities
Deliberating feedback
Final pronouncement

News

May 15, 2025

Resource

Evaluating the Preface Project Summary

Read the project summary for the AcSB's Evaluating the Preface project to learn more about our research findings and why we decided to conclude our work on this project.

Meeting & event summaries

April 12, 2025

AcSB Decision Summary – April 22, 2025

The AcSB approved its “Evaluating the Preface: Project Summary,” which summarizes the results of its research and its rationale for concluding the project. This document will be posted on the Board’s website in May 2025.

As the AcSB has concluded its Evaluating the Preface project, the Board will consider resuming its research project on Revenue –Upfront Non-refundable Fees or Payments when discussing its future agenda priorities.

November 20, 2024

Pension Plan Advisory Committee Notes – October 28, 2024

The Committee discussed the AcSB’s strategic initiative to evaluate the Preface to the Handbook and whether the Preface is directing small health and wellness funds to the most suitable framework to meet their reporting needs.

The Committee advised that for small health and wellness funds that are acting as intermediaries and not holding assets in a fiduciary capacity, further research may be needed to assess whether Part IV of the Handbook is meeting the financial reporting needs. The Committee advised that this may not be limited to small health and wellness funds and therefore any research should be broader to include other types of plans as well.

The AcSB will consider the Committee’s feedback at its meeting in February 2025.

August 15, 2024

Not-for-Profit Advisory Committee Notes – July 23, 2024

The Not-for-Profit Advisory Committee received an overview of feedback from the AcSB’s advisory committees and working group regarding its strategic initiative to evaluate the Preface of the Handbook. The Committee provided additional feedback on the financial reporting requirements for certain types of entities, such as social enterprises and sports and social clubs. The Board will discuss the Committee’s feedback at its meeting in November 2024.

August 9, 2024

Private Enterprise Advisory Committee Notes – July 18, 2024

The Private Enterprise Advisory Committee received an overview of feedback from the AcSB’s advisory committees and working group regarding its strategic initiative to evaluate the Preface of the Handbook. The Committee provided additional feedback on the financial reporting requirements for certain types of entities, such as social enterprises, small health and wellness funds, and sports and social clubs. The Board will discuss the Committee’s feedback at its meeting in November 2024.

June 4, 2024

Private Enterprise Advisory Committee Notes – May 9, 2024

The Private Enterprise Advisory Committee received an overview of the AcSB’s research project on the Preface to the Handbook and preliminary research findings. The Committee discussed the purpose of the Preface and whether the Preface directs entities to apply the most appropriate accounting framework based on entities’ reporting needs and objectives.

The Committee discussed some types of entities, such as co-operatives or sports and social clubs, that apply different accounting frameworks depending on their ownership structure or purpose (i.e., member-benefit organizations versus for-profit clubs). Some members indicated that there can be differences in how these entities operate, which is why a different framework is applied . None of the members indicated that there are issues with how entities use the Preface to determine the part of the Handbook to apply, nor did they indicate that any changes to the Preface are needed.

The Committee also discussed certain types of non-listed entities that apply Part I of the Handbook, and considered whether a different framework such as ASPE would better meet their reporting needs. For captive and mutual insurance entities, some Committee members noted that IFRS® Accounting Standards are relevant as they include a standard on insurance contracts whereas ASPE does not. For smaller, less complex government business organizations, some members noted that IFRS can be onerous to apply; however, a member also noted that scaling the requirement to apply a framework based on size and/or complexity could be challenging.

The AcSB will discuss the Committee’s feedback at its meeting on June 19-20, 2024, as part of its ongoing research project on Evaluating the Preface.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.