MNP Comment Letter - Redeemable Preferred Shares Issued in a Tax Planning Arrangement Exposure Draft

Category: ASPE

MNP Comment Letter - Redeemable Preferred Shares Issued in a Tax Planning Arrangement Exposure Draft



Thank you for the opportunity to comment on the above-noted document. MNP LLP (MNP) is one of Canada’s largest chartered accountancy and business advisory firms, with a significant focus on clients in private enterprises. We believe that we are positioned well to provide feedback on this important issue that many of our clients have expressed concern.

We have reviewed the document and have provided our comments below. We have identified several areas where additional guidance may be needed to assist in the consistent application of the finalized standards.

Question 1: Do you agree that the preferred shares described in Financial Instruments, paragraph 3856.23 are liabilities and that paragraph 3856.23 should be deleted in accordance with the cost/benefit assessment set out in the Basis for Conclusions in this Exposure Draft in order to improve financial reporting? If not, why not? What aspect of the cost/benefit assessment do you disagree with?

Redeemable Preferred Shares Issued in a Tax planning arrangement

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Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.