Accounting Standards for Private Enterprises: what to do about defined benefit plans?

February 1, 2012 Adam Gorley Payroll, Pensions and Benefits

Is your company making the transition to Accounting Standards for Private Enterprises (CICA Handbook, Part II)? Do you have employees in a defined benefit pension plan? You should know that the Accounting Standards Board has approved amendments to CICA 1500, “First-time adoption” and Section 3461, “Employee future benefits.” According to PricewaterhouseCoopers, the amendments:

Permit an entity that accounts for its defined benefit plans using the deferral and amortization approach to carry forward at the date of transition to ASPE any unrecognized actuarial gains and losses and past service costs that were determined previously in accordance with Part V, CICA 3461, Employee Future Benefits, or an equivalent basis of accounting such as Part I, IAS, Employee Benefits.

Deloitte seems to think the amendments will also apply to non-profits under Part III of the Handbook, and that they won’t apply before 2014.

Feel free to let us know how your transition is going!

Adam Gorley
First Reference Internal Controls, Human Resources and Compliance Editor

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Adam Gorley

Editor at First Reference Inc.

Adam Gorley is a copywriter, editor and researcher at First Reference. He contributes regularly to First Reference Talks, Inside Internal Controls and other First Reference publications. He writes about general HR issues, accessibility, privacy, technology in the workplace, accommodation, violence and harassment, internal controls and more. Read more