Retractable or Mandatorily Redeemable Shares Issued in a Tax Planning Arrangement

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