An annual report for Air Canada contained the following information:
The Corporation maintains several defined benefit and defined contribution plans providing pension, other post- retirement and post- employment benefits to its employees and former employees for whom the related pension assets and liabilities have not yet been settled. . . .
The other employee benefits include health, life, and disability. These benefits consist of both post-employment and post- retirement benefits. The post- employment benefits relate to disability benefits available to eligible active employees, while the post- retirement benefits are comprised of health care and life insurance benefits available to eligible retired employees.
Required:
Should Air Canada report a liability for these benefits on its statement of financial position? Explain.