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Theresa Lo, CPA Chartered Professional Accountant 陳盧韻詩特許專業會計師事務所
Theresa Lo, CPAChartered Professional Accountant陳盧韻詩特許專業會計師事務所

Part 2: Corporate Federal Taxes Changes

6.  Valuation of derivatives

 

Certain derivatives are excluded from the inventory valuation rules while maintaining the status of such property as inventory resulting a current write-down of the value and recognize the gains at the end of the year.


Section 10 of the Income Tax Act is amended by adding the following after subsection (14):


"Derivatives
(15) For the purposes of this section, property of a taxpayer that is a swap agreement, a forward purchase or sale agreement, a forward rate agreement, a futures agreement, an option agreement, or any similar agreement is deemed not to be inventory of the taxpayer."

 

For more information, please contact us @ 604-639-3229 or info@theresalocpa.ca

 

Note:  All information relating to derivatives valuation above is available from Government of Canada website.

 

By Theresa Lo, CPA, CGA

October 11, 2017

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