Adviser alert – August 2018

The Grant Thornton International IFRS team has published IFRS Viewpoint – Accounting for crypto assets – mining and validation issues.

The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the standards have proved difficult to apply or lack guidance.

This edition provides guidance on issues relating to miners and validators of blockchains, in particular accounting for transferred cryptocurrency earned by miners and validators in the form of transaction fees, as well as the accounting for newly created cryptocurrency by miners.

The issue

Currently, IFRS does not provide specific guidance on accounting for crypto assets. This IFRS Viewpoint seeks to explores the accounting issues that arise for miners and validators in mining and maintaining the blockchain in accordance with existing IFRS. It follows the earlier publication IFRS Viewpoint – Accounting for cryptocurrencies – the basics.

 

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Donald Aubut
Senior Manager | CPA, CGA, M. Fisc. | Tax

On August 15, 2018, Québec Finance Minister, Carlos Leitão, announced a temporary increase in the tax credit rate for investments in manufacturing and processing equipment for businesses in the Saguenay—Lac-Saint-Jean, North Shore and Northern Québec regions.

The tax credit rate will be increased for acquisitions between August 16, 2018 and December 31, 2019.

Tax credit increase for expenses incurred during this period:

  • Saguenay—Lac-Saint-Jean: up to 20%
  • North Shore and Northern Quebec: up to 40%

The tax credit rate will also be increased for eligible metal processing companies:

Tax credit increase for expenses incurred between August 16, 2018 and December 31, 2019:

  • Saguenay—Lac-Saint-Jean: up to 25%
  • North Shore and Northern Quebec: up to 45%

This is a significant benefit for any business planning to acquire equipment. It’s important therefore to prepare the claim within the specified deadlines.

Additionally, the Health Services Fund (HSF) contribution rate payable by employers will be reduced for SMEs in the primary and manufacturing sector. The reduction will be based on the total payroll. For example, an SME with a $1,000,000 payroll will pay a rate of 1.25% instead of 1.45% for salaries paid as of August 16, 2018.

04 Sep 2018  |  Written by :

Donald Aubut is a tax expert at Raymond Chabot Grant Thornton. Contact him today!

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Jean-Yves Trottier
Partner | CPA, CA | Assurance

Groupe Industriel Lachance Inc. specializes in ferrous and nonferrous metals stamping and machining and offer integrated solutions to our customers. Innovation and quality are the underlying principles of our products and service.

[French only]

29 Aug 2018  |  Written by :

Mr. Trottier is a partner at RCGT. He is your expert in assurance for the Granby office. Contact him...

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Bruno Chrétien
Partner | CPA, CA | Assurance

From edge protectors to sheets, pads and tubes & cores, Northrich offers a wide array of strong and reliable products. Whether the client requires standard or custom products, Northrich can cater to their needs by creating, developing and manufacturing protective packaging solutions.

[French only]

29 Aug 2018  |  Written by :

Mr. Chrétien is a partner at RCGT. He is your expert in assurance for the Granby office. Contact...

See the profile