Liability or equity?
Article Abstract:
The new Canadian Institute of Chartered Accountants (CICA) Handbook Section 3860, 'Financial instruments - disclosure and presentation,' took effect on Jan. 1, 1996. It pertains to key changes to previous practice for the classification of financial instruments between liabilities and equity. The Emerging Issues Committee Abstract No. 69, 'Recognition and measurement of financial instruments presented as liabilities or equity under CICA 3860,' underscores the impact of the changes on 'high/low' redeemable preferred shares commonly issued in estate freeze arrangements in private firms.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1996
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The management approach
Article Abstract:
A management approach, which allows sensitive financial information to be disclosed to outside parties, may be beneficial to creditors and investors but may be harmful to an enterprise if information is not properly filtered. A management-based approach enables creditors and investors to understand the rationale behind a management's chosen strategy, which includes risks and opportunities. Competitors, however, might use sensitive data to disrupt business transactions such as price negotiations.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1997
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