This project proposes to amend Section 3465 to remove an outdated example on “eligible capital expenditures”, and to remove the requirement to present future income tax assets and liabilities as current and non-current when the future income taxes method is applied.
The eligible capital property (ECP) rules in Section 14 of the Income Tax Act were repealed and replaced by new Class 14.1 of Schedule II to the Income Tax Regulations, effective on January 1, 2017. The example in paragraph 3465.14(f) of the existing standard, provides guidance on accounting for ECP, which is no longer applicable.
Section 3465 requires that future income tax assets and liabilities be presented as current and non-current when the future income taxes method is applied. A recent amendment to U.S Generally Accepted Accounting Principles (US GAAP) eliminated the requirement to segregate deferred tax assets and liabilities into current and non-current components.