skip to content

Section 3463 – Reporting Employee Future Benefits by Not-for-Profit Organizations

Read the document

Download

Updated: December 2013

Effective Date: Fiscal years beginning on or after January 1, 20141

This Section applies to accounting for employee future benefits provided by a NPO.

Except as stated in this Section, a NPO applies the guidance in Section 3462, Employee Future Benefits, in Part II of the Handbook in accounting for employee future benefits.

Refer to our publication “ASPE At a Glance: Section 3462 – Employee Future Benefits,” for more information.

Recognition and presentation of remeasurements and other items

Remeasurements and other items are defined in paragraph 3462.006(z) as the aggregate of:

  • The difference between the actual return on plan assets and the return calculated using the discount rate used to determine the defined benefit obligation;
  • Actuarial gains and losses;
  • The effect of any valuation allowance in the case of a net defined benefit asset, determined in accordance with paragraph 3462.086;
  • Past service costs; and
  • Gains and losses arising from settlements and curtailments.

A NPO determines the amount of remeasurements and other items for the period in accordance with paragraphs 3462.085-.090.

Remeasurements and other items are:

  • Recognized directly in net assets in the Statement of Financial Position, not in the Statement of Operations; and
  • Presented as a separate line item in the Statement of Changes in Net Assets.

In a subsequent period, remeasurements and other items cannot be reclassified to the Statement of Operations.

Earlier application is permitted, but only if applied to all of a NPO’s benefit plans. This Section is applied retrospectively, in accordance with Section 1506, Accounting Changes, except as set out in paragraphs 3463.06-.07.

BDO can help you navigate the road ahead

Applying financial reporting standards can be quite complex. The BDO team can help you assess your situation and prepare for the opportunities and challenges involved.

Contact us today to start the conversation

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our privacy statement for more information on the cookies we use and how to delete or block them.

Accept and close