At its meeting on January 12, 2017, the AcSB decided that the basis for the classification exception should be on the condition of retention of control of an enterprise and that additional guidance may be needed relating to the control assessment. In addition, the AcSB decided that other conditions are necessary in order to qualify for the classification exception.

The AcSB noted that at least some of the tax planning arrangements that meet the classification exception under the current guidance will not qualify for the exception under the proposed basis.  Accordingly, the AcSB directed the staff to obtain feedback from its Private Enterprise Advisory Committee on the effect of its decisions on current practice. At its March 21-22, 2017 meeting, the AcSB will consider the input received from the Committee. The AcSB will also begin to discuss transitional provisions.

Review the Executive Summary on the AcSB's Web site.