1. What is OSFI's position regarding GAAP for pension funds of pension plans it regulates?
OSFI has received enquiries about its financial reporting requirements, in particular with respect to the new requirements under CICA 3862, Financial Instruments Disclosures included in the Handbook of the Canadian Institute of Chartered Accountants. OSFI's position regarding financial reporting by pension plans has not changed. As outlined in Section I of OSFI’s Guide to the Certified Financial Statements, pension plans must prepare financial statements, and the information they contain, in accordance with Generally Accepted Accounting Principles (GAAP). The primary standard applicable to pension plans will continue to be CICA 4100, with the exception that OSFI does not require disclosure of pension obligations in the financial statements. To the extent that aspects of financial reporting by pension plans are not addressed by Section 4100, pension plans must consider other sources of GAAP, such as the new requirements under CICA 3862.
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2. Will there be changes to financial reporting by pension plans as a result of the International Financial Reporting Standards (IFRS)?
The Canadian Accounting Standards Board has confirmed that compliance with IFRS will be mandatory for publicly accountable entities (PAE) in the first fiscal year beginning on or after January 1, 2011. Pension plans are considered PAEs. The primary standard applicable to pension plans will continue to be CICA 4100. OSFI is monitoring IFRS developments and we will keep you informed of any future changes that could affect pension plan financial reporting.
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