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Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement (Proposed Amendments to Sections 1591, 3251 and 3856) [ED]

Comment period ended on January 15, 2018.

Next steps:

The AcSB plans to issue the final amendments no later than the fourth quarter of 2018.

Proposed effective date:

For fiscal years beginning on or after January 1, 2020.

Last updated:

July 2018

Reach out to our Section 3856 Specialist

Kerry Danyluk

Overview

The title of this project has been modified to reflect the characteristics of the shares that are issued in tax planning arrangements. It was formerly entitled "Redeemable Preferred Shares Issued in a Tax Planning Arrangement".

The accounting for retractable or mandatorily redeemable shares issued in a tax planning arrangement, as set out in Financial Instruments, paragraph 3856.23, needs to be re-examined.

A number of issues have arisen in respect of redeemable preferred shares. Issues include scope, reclassification and measurement.  The AcSB discussed these issues and agreed that they were beyond the scope of an annual improvement. Accordingly, it agreed to undertake a separate project to address them.

 

Other developments

September 2017

On September 29, 2017, the 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). Stakeholders are encouraged to submit their comments by January 15, 2018.

February 2017

On February 28, 2017, the staff of the AcSB updated this project to indicate that the AcSB expects to issue a Re-exposure Draft in Q3/2017.

October 2014

On October 1, 2014, the AcSB issued for public comment an Exposure Draft that contains proposed amendments to Section 3856, Financial Instruments, in respect of Redeemable Preferred Shares Issued in a Tax Planning Arrangement.

March 2013

On March 19-20, 2013, the AcSB approved a project to re-examine the accounting for redeemable preferred shares issued in a tax planning arrangement, as set out in Financial Instruments, paragraph 3856.23.

 

Correction list for hyphenation

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