Pensions are financial arrangements that allow individuals to receive a stream of income during their retirement years (Tatum, 2011). They are found in government institutions, private businesses, professional groups and various other contexts. Pension funds can be found as part of an institution or as an independent plan. Pension plans are a major player in financial markets. For example, consider the fact that the Ontario Teachers' Pension Plan had a net asset value of $96.4 billion at the end of December 31, 2009. Due to the importance of pension plans in local and global economy, there is persistent pressure to improve pension accounting. These changes have accelerated with the recent adoption of International Financial Reporting Standards (IFRS) in Canada and their anticipated adoption by the United States in the near future. We believe that the various changes to pension accounting have improved investor decision-making and benefited other stakeholders. To illustrate this, we will first explain pension plans in more detail and, secondly, discuss various recent and near future changes in pension accounting in Canada, particularly Section 4600 of Part IV of the CICA Handbook and International Accounting Standards (IAS) 19. These changes will be studied specifically in the context of private entity pension plans and with particular emphasis on defined benefit plans. Finally, we will demonstrate why these changes are necessary and how they benefit the stakeholders involved. Pension plans have various stakeholders, including investors, employees, management (employers), creditors and analysts (Glaum, 2009). Taxpayers and governments can also be added to this...... middle of document...... to IAS 19. Retrieved from http://www.ifrs.org/NR/rdonlyres/0F38AB00-2FC7- 4052 -A9A9-F13F3759D8FE/0/EDIAS19DiscountRates.pdf.International Accounting Standards Board. (2010). Defined benefit plans: proposed amendments to IAS 19. Retrieved from http://www.iasb.org/NR/rdonlyres/A366AC39-6AE3-4516-A81D-ACFB4A9E5D42/0/EDIAS19DefinedBenefit.pdfInternational Financial Reporting Standards. (2010). Snapshot summary document of the exposure draft. Retrieved from http://www.ifrs.org/NR/rdonlyres/944C6CFC-1EC1-4796-BA56-0BCF590E9329/0/SnapshotAmendstoIAS19new.pdfRevsine, L. (1989). Understanding the Financial Accounting Standard 87. Financial Analysts Journal, 45(1), 61. Retrieved from ABI/INFORM Global. (Document ID: 457232). Tatum, M. (2011). What is a pension plan? Retrieved from http://www.wisegeek.com/what-is-a-pension-plan.htm.