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AcSB Exposure Draft – Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement

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Sep 29, 2017

On September 29, 2017, the Accounting Standards Board (AcSB) issued an Exposure Draft re-examining the accounting for retractable or mandatorily redeemable shares issued in a tax planning arrangement (formerly Redeemable Preferred Shares Issued in a Tax Planning Arrangement) under Part II of the CPA Canada- Handbook. Stakeholders are encouraged to submit their comments by January 15, 2018.

The AcSB proposes, subject to comments received following exposure, to amend FINANCIAL INSTRUMENTS, Section 3856, to modify the accounting for retractable or mandatorily redeemable shares issued in a tax planning arrangement.

The Board also proposes, subject to comments received following exposure, to amend:

  • SUBSIDIARIES, Section 1591, to add guidance on substantive rights; and
  • EQUITY, Section 3251, to present the effects of the amendments to FINANCIAL INSTRUMENTS, Section 3856, as a separate component of equity.

The Board plans to issue the final amendments in the first quarter of 2019, if no significant changes are required to the proposals after deliberating the comments received. In that case, the proposed effective date of the amendments would be for fiscal years beginning on or after January 1, 2020.

Review the Exposure Draft on the AcSB's website.

Correction list for hyphenation

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