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Accounting Standards for Private Enterprises

Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement (renamed Redeemable Preferred Shares Issued in a Tax Planning Arrangement)

Summary

The title of this project has been modified to reflect the characteristics of the shares that are issued in tax planning arrangements. 

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.

Staff Contact(s)

Mohamed Hassanali, CPA, CA Associate Director, Accounting Standards Board

Phone number  +1 416 204 2967
Email address  [email protected]
Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Phone number  +1 416 204 3270
Email address  [email protected]

Project Status

  • Information gathering

    Completed prior to March 2013

  • Approving project

    The AcSB approved the project in March 2013

  • Engaging Communities

    Consultation with stakeholders and the AcSB’s Private Enterprise Advisory Committee occurred May 2013–April 2014

    First Exposure Draft issued, October 2014

    Consultation with stakeholders and the Private Enterprise Advisory Committee occurred October 2014–September 2017

    Second Exposure Draft issued September 2017

    Public outreach occurred October 2017–March 2018

  • Deliberating feedback

    Amendments were approved by the AcSB in September 2018

  • Final pronouncement

    The final amendments were issued in the CPA Canada Handbook – Accounting in December 2018 with an effective date of periods beginning on or after January 1, 2021.

Addressing Implementation Questions

Hear Armand Capisciolto, Vice-Chair of the Accounting Standards Board (AcSB), discuss implementation questions on the amendments to Section 3856, Financial Instruments, relating to retractable or mandatorily redeemable shares issued in a tax planning arrangement.

Listen Now

Webinar – Amendments to Section 3856, Financial Instruments

Watch this on-demand webinar to learn more about amendments to the accounting for retractable or mandatorily redeemable shares and other financial instruments.

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Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.