ASPE briefing: Retractable or mandatorily redeemable shares issued in a tax planning arrangement

Learn about the new accounting standards for private enterprises (ASPE) issued in December 2018 in Part II of the CPA Canada Handbook – Accounting.

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This ASPE briefing highlights key changes resulting from the amendments to Section 3856, Financial Instruments regarding retractable or mandatorily redeemable shares issued in a tax planning arrangement. These Handbook amendments to Section 3856 are effective for annual periods beginning on or after January 1, 2020.

Topics include:

  • what are retractable or mandatorily redeemable shares issued in a tax planning arrangement
  • when to classify such shares as equity and when to classify as debt
  • how to measure retractable or mandatorily redeemable shares issued in a tax planning arrangement
  • presentation and disclosure requirements related to such shares
  • transitional considerations and the date for which the Handbook amendments to Section 3856 take effect