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Section 3465 - Income taxes

Effective date:

January 1, 2011 except for subsequent amendments

Published by the AcSB:

December 2009

Reach out to our Section 3465 Specialist

Jon Kligman


This Section establishes standards for the recognition, measurement, presentation and disclosure of income and refundable taxes in an enterprise's financial statements. Private companies are provided with a choice to account for their income taxes using either the taxes payable method or the future income taxes method. Under the taxes payable method, only current income tax assets and liabilities are recognized. Under the future income taxes method, differences between the carrying amount and tax base of assets and liabilities, and carryforward tax losses and credits, are recognized with limited exceptions, as future income tax liabilities and future income tax assets. Future income tax assets are subject to a "more likely than not" test of recoverability.  

History of Section 3465




December 2009

Part II of the CPA Canada Handbook issued

Effective for fiscal years beginning on or after January 1, 2011.

October 2012

Annual improvements

Paragraph .88, has been amended to eliminate an inconsistency with Section 1520 Income statement. Effective for fiscal years beginning on or after January 1, 2013.

June 2019

Amendments to Section 3465 (i) to remove an outdated example and (ii) to require non-current classification of future income tax assets and income tax liabilities rather than require current and non-current classification of these assets and liabilities.


The amendments are ef­fec­tive for fis­cal years be­gin­ning on or af­ter Jan­u­ary 1, 2020 with earlier application permitted.

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Amendments under consideration

  • None

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.