The new millennium will demand, among other things, new accounting for income taxes. Subject to confirmation by written ballot, the Accounting Standards Board has approved new CICA Handbook standards effective for fiscal years beginning in or after 2000.
Earlier adoption is encouraged.
The standards are retroactive, but restatement of financial statements for earlier periods is not required. The new standards are even closer to US rules than those in the exposure draft. Limited exceptions apply, for example, to differences between the historical exchange rate and current exchange rate translations of non-monetary assets and liabilities of integrated foreign operations. All previously described timing differences and some old permanent differences such as earned depletion are covered. Future income tax liabilities recognize taxable temporary differences.