Learn about the new Section , issued by the Accounting Standards Board in September to replace Section Employee Future Benefits, which will replace Section in Part II of the CICA Handbook. The final version is consistent with the Exposure. Does anyone have an example similar to the illustrative examples of that actually use immediate recognition? The examples continue to.

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CICA Immediate recognition – Actuarial Outpost

As it now stands, the new income tax standards are effective for fiscal years beginning inand the revisions to the pensions and new pronouncements for other benefits won’t be finalized by the Accounting Standards Board until later in with a likely effective date clca The decision was made to incorporate the Income Tax Exposure Draft recommendations subsequently rewritten for minor changes between the ED and the final Handbook section in Chapter 19 and the Exposure Draft recommendations for Employees’ Future Benefits in Chapter Section includes more detail and discussion on entities with two or more plans, not discussed in Chapter A change in the use of the cicca “fair icca and “market-related value.

Sectionunlike the Exposure Draft and old Sectionrecognizes the existence of employee contributions. While the Exposure Draft material related to pensions and other employee future benefits is not finalized, it is anticipated that in all major respects, the ED changes 34461 be made to bring the standard in line with the U.

Transitional changes were not addressed in Chapter Unlike the Exposure Draftthe final standard provides for two levels of disclosure for defined benefit plans: This section has been reorganized, now starting with a reminder about Section requirements 33461 disclose the methods used when choices are provided. Section clarifies that when the costs of special or contractual termination benefits, or gains or cicw from settlements and curtailments relate directly to a discontinued operation or a disposal of a portion of a business segment, they should be included in the gain or loss from discontinued operations or the gain or loss on disposal of that portion of a business segment, as appropriate.


The basic set includes:.

Section , Employee future benefits: September update: Financial reporting alert

Major assumptions underlying various measurements such as the discount rate, the expected long-term rate of return on plan assets, the rate of compensation increase, and information about the assumed health care cost trend rates for health care benefits. In calculating the expected return on plan assets and in determining the minimum amount of amortization under the corridor approach, either fair value or market-related value is acceptable.

These are legitimate questions for professors to ask and ones that the authors had to deal with in determining some of the content of the 5th edition! Those that grant unrestricted time off for past service are classified as service-related future benefits, with the liability and expense accrued over the service period. It is effective for fiscal years beginning on or after January 1,however, earlier adoption is being encouraged.

This note explains a specific requirement that was changed in the final standard, affecting the text material in Chapter 23, and describes areas where cixa final document provides for additional information or clarification. The climate in the existing Accounting Standards Board is to eliminate major differences between the Canadian and FASB standards wherever there is not a convincing reason for a difference.

We should equip them with standards that are as current as possible. Because companies have a choice, the guidance to disclose the policy adopted in determining the composition of cash and cash equivalents has been elevated to a required disclosure. This may differ depending on the circumstance.

The nature and effect of each significant change during the period affecting the comparability of the expense reported, such as a change in the rate of employer contributions, a business combination or divestiture. This does not change the calculations in Chapter 20 because fair value and market-related value were assumed to be equal.


One major difference exists between the Exposure Draft and new Section that affects Chapter 20 — recommendations relating to disclosure.

Many large Canadian companies, particularly those with reporting requirements in the U.

This does not materially change the coverage in Chapter Still in the Exposure Draft stage? Welcome to the Author Corner.

Section 3462, Employee future benefits: September 2013 update: Financial reporting alert

EARSL, or the expected average remaining service life of the employee group is no longer used, nor is it a defined term. A reconciliation of the beginning and ending balances of the accrued benefit obligation and the fair value of plan assets for the period.

The total plan obligation, the fair value of plan assets, and the resulting surplus or deficit. Dividend payments are classified in this ciica as operating outflows, whereas revised Section requires that they be financing outflows. The final standard looks different from the Exposure Draft — it is much better organized, is internally consistent, is easier to read, and has a useful glossary of defined terms before the appendices of examples.

The unamortized amounts remaining, separately disclosing the unamortized past service costs, the unamortized net actuarial gain or loss, and the unamortized transitional obligation or asset, as well as the amount of amortization for the period for each. The final standard includes a recommendation that interest earned on any unallocated plan surplus which might arise if a defined benefit plan is converted to a defined contribution plan should reduce the benefit expense for the period.

Securities and loans “held for trading purposes,” terminology based originally cicq U. The CICA Exposure Draft and Chapter 23 both indicate that cash flows from interest and dividends received and paid should “be classified in a consistent manner from period to period as either operating, investing or financing activities.