Urgency for changes to accounting standards has decreased
The Accounting Standards Board (AcSB) has decided not to proceed with proposed changes to the employee future benefits section in the handbook of the Chartered Accountants of Canada.
The March 2007 proposals followed proposed changes to accounting standards in the United States, which would have seen an unfunded or over-funded obligation appear on a balance sheet as a liability or asset.
But the Toronto-based AcSB said now is not the right time to implement the changes and, “as a result of changed market conditions, the urgency associated with the project has decreased since it was initiated.”
The board also said entities currently disclose the funded status of defined-benefit plans and focus instead should be on the transition to International Financial Reporting Standards in the next five years.
The March 2007 proposals followed proposed changes to accounting standards in the United States, which would have seen an unfunded or over-funded obligation appear on a balance sheet as a liability or asset.
But the Toronto-based AcSB said now is not the right time to implement the changes and, “as a result of changed market conditions, the urgency associated with the project has decreased since it was initiated.”
The board also said entities currently disclose the funded status of defined-benefit plans and focus instead should be on the transition to International Financial Reporting Standards in the next five years.
