Presentation and Disclosure of Redeemable Shares Issued in a Tax Planning Arrangement
In this guide we have provided examples to assist firms in the adoption of the revised standards for redeemable or mandatorily retractable shares issued in a tax planning arrangement. With considerable material publicly available to evaluate the criteria for the measurement of redeemable shares as equity or liabilities, this guide focuses on the presentation and disclosure requirements.
We have included five examples which cover the presentation and measurement of the balance sheet and statement of retained earnings and the related financial statement disclosures. To assist your staff we have also provided the proposed journal entries for each example. We address the requirements under the change in accounting policies including the available options for presentation in equity and the date of adoption, modifications to the financial instrument accounting policy note and the related liability and share capital disclosures.
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