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This study concerns the impact of debt ratios of Canadian enterprises on their net exposure arising from the operation of defined benefit pension plans. A significant and similar impact is found throughout the reference period, 19881993. When assessed in comparison with financial statement indicators proposed by the Audit Normalisation Committee of the Canadian Institute of Chartered Accountants, there would need to be a significant before-tax adjustment. The alternative of deferral and subsequent amortisation to income would produce a significant increase in debt ratios for the majority of companies studied. On the other hand, a retroactive imputation against retained earnings would significantly reduce the majority of debt ratios.