The proposals in this Exposure Draft are as follows:
- Paragraph 3856.23, requiring redeemable preferred shares issued in a tax planning arrangement under specific sections of the Income Tax Act to be presented as equity, would be deleted. As a result of this deletion, preferred shares accounted for in accordance with this paragraph would be accounted for consistently with other financial liabilities.
- The effect of recognizing the liability would be presented as a separate component of equity.
- Information regarding the nature of the separate component of equity would be disclosed.
- Retrospective application would be required in accordance with ACCOUNTING CHANGES, Section 1506.