At its meeting on February 7, 2018, the PEAC discussed a summary of the feedback obtained from outreach activities on the Exposure Draft, “Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement.” Committee members advised the Board to consider: (i) clarifying “Condition 2 – Redemption schedule” by removing reference to “implicit arrangements”; (ii) revising “Condition 3 – No consideration other than shares exchanged” to more clearly reflect that this condition applies to transactions that involve more than one class of shares; and (iii) providing an option for liability classification when all the conditions for equity classification of retractable or mandatorily redeemable shares are met or a stakeholder chooses not to assess whether all the conditions are met. Committee members also discussed feedback on the transitional relief the Board proposed and expressed mixed views about whether additional transitional relief was necessary in circumstances when information about a tax planning arrangement could not be obtained.

Review the meeting notes on the AcSB's Web site.