Pension accounting standard changes will lead to a shift in risk philosophy
January 01, 2011
By Brent Simmons, Senior Vice-President & Head, Defined Benefit Solutions
Canadian corporations have finalized the details for the transition to International Financial Reporting Standards (IFRS) effective January 1, 2011. One implication is that pension disclosures in financial statements will lead to greater transparency of changes in the funded status of a defined benefit (DB) pension plan. This transparency could lead to a shift in philosophy by Canadian DB plan sponsors whose current asset mix has an equity bias.
