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
Major assumptions underlying various measurements such as the discount rate, the expected long-term rate of return on plan assets, the cicq of compensation increase, xica information about the assumed health care cost trend rates for health care benefits. We should equip them with standards that are as current as possible.
Many large Canadian companies, particularly those with reporting requirements in the U. Those that require research or public service to be performed to benefit the entity during the sabbatical period do not require accrual. 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 cca period. EARSL, or the expected average remaining service life of the employee cicx is no longer used, nor is it a defined term.
Is this what we should be teaching now? The final revisions to Handbook Section recommend the following: Sectionunlike the Exposure Draft and old Sectionrecognizes the existence of employee contributions. New Section permits either prospective or retroactive treatment for the new recommendations, but requires that the same basis be applied by a company to all benefit plans for which a change in accounting is required.
Section 3462, Employee future benefits: September 2013 update: Financial reporting alert
A change in the use of the terms “fair value” and “market-related value. 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.
More discussion about the treatment of sabbaticals. The nature and effect of each significant non-routine event occurring during the period such as 346 plan amendment, curtailment or settlement, or business combination or divestiture. Section includes more detail and discussion on entities with two or more plans, not discussed in Chapter The release of new CICA Handbook Sectionsent to subscribers in March,significantly changes the cicq for and reporting of employee future benefits in Canada.
Link to previous articles: The decision was made to incorporate the Income Tax Exposure Draft recommendations subsequently rewritten for minor changes between the ED and the final Handbook cicw in Chapter 19 and the Exposure Draft recommendations for Employees’ Future Benefits in Chapter 346 This note explains a specific requirement that was changed in the final standard, affecting the text material in Chapter 23, and describes areas where the final document provides for additional information or clarification.
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.
Dividend payments are classified in this material as operating outflows, whereas revised Section requires that they be financing outflows. The climate in the existing Accounting Standards Board is to eliminate cicw differences between the Canadian and FASB standards wherever there is not a convincing reason for a difference.
Many intermediate accounting students are one to two years from graduation Here our authors will speak to you directly and provide you with updates on current accounting issues, changes in the discipline, teaching trends, tips on using the book.
A reconciliation of the beginning and ending balances of the accrued benefit obligation and the fair value of plan assets for the period. One major difference exists between the Exposure Draft and new Section that affects Chapter 20 — recommendations relating to disclosure. Section clarifies that when the costs of special or contractual termination benefits, or gains or losses from 361 and curtailments relate directly to a discontinued operation or a disposal 34611 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.
Based on risk and return criteria, we must move forward.
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 of 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.
It is effective for fiscal years beginning on or after January 1,however, earlier adoption is being encouraged.
As expected, there are few changes of any significance. 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.
This does 361 change the calculations in Chapter 20 because fair value and market-related value were assumed to be equal.
Not effective until the year ? 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!