Redeemable Preferred Shares – AcSOC

Date recorded:

At the AcSOC meeting on October 26-27, 2017, the Director, Accounting Standards of the AcSB reported that the proposed exception in the recently issued Exposure Draft to treat shares issued in a tax planning arrangement as equity when certain specified conditions are met is a compromise, as these shares are conceptually financial liabilities. This would result in a change in practice that would be significant for some, but represents a compromise from the full removal of the option for an exception from liability treatment. The AcSB has formulated a comprehensive consultation plan and will consult with stakeholders across Canada.

Review the meeting summary on the AcSOC's Web site.

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