Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement

By CPA Canada
Published: 07/01/2019

Read this ASPE Briefing to learn about the 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.

Find out:

  • the definition of 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; and
  • transitional considerations and the date for which the handbook amendments to Section 3856 take effect.

Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement