The Grant Thornton International IFRS team has published Insights into IFRS 16 – Understanding the discount rate.

The Insights into IFRS 16 series provides insights on applying IFRS 16, Leases, in key areas. Each edition will focus on an area of IFRS 16 to assist you in preparing for the required changes on adoption of the standard.

This first edition provides guidance on the determination of the discount rate.

The issue

Under IFRS 16, discount rates are required to determine the present value of the lease payments used to measure a lessee’s lease liability. Discount rates are also used to determine lease classification for a lessor and to measure a lessor’s net investment in a finance lease.

This bulletin explores the different methods prescribed in IFRS 16 to determine discount rates and presents insights to help you understand them.

Next article

Business leaders have shared their entrepreneurial vision with our President and CEO, Emilio B. Imbriglio, in exclusive interviews.

Always relevant, their comments deserve our attention. This is the second in a series of three interviews.

In these videos, Marc Dutil, President and CEO of Canam Group Inc. discusses several topics, including micromanagement, leadership style, strategy and investor relations management.

Everything you do has to be out of respect.

Our firm is proud to present these high-level meetings filmed in an unusual and spectacular location: outside, on the roof of Place Ville Marie.

To find out more, view these short videos.


Marc Dutil on micromanagement


On leadership style


On strategy


On investor relations management

Next article

Our webinar on recent developments in Accounting Standards for Private Enterprises (ASPE) that took place on November 21st is now online.

The session will provide an overview of the following, among others:

  • New or revised accounting standards, including amendments to Section 1591, Subsidiaries, and Section 3051, Investments, relating to the cost method;
  • The projects and activities of the Canadian Accounting Standards Board, including the one on redeemable shares issued in a tax planning arrangement;
  • Some practical issues regarding cryptocurrencies.

Each participant will be able to take a test at the end of the session. A training certificate, which applies to training hours recognized by the Quebec CPA Order (OCPAQ), will be given to each participant who passes the test.

Please note that this information session is in French.

Access the session here.

Next article

Christian Menier
Partner | CPA, CA, M. Fisc. | Tax

We regularly hear about RRSPs, TFSAs and RESPs. No, it’s not a series of Scrabble letters; these are three very different savings mechanisms.

How can you make sense of this all? How can you choose what’s right for you? To answer these questions, let’s see what’s behind these letters and look at the main characteristics of each.


The most popular, the Registered Retirement Savings Plan (RRSP) is a mechanism put in place by the tax authorities to promote retirement savings. The contributions permitted in this plan are limited by precise tax parameters based on earnings and contributions made to other retirement plans. The RRSP’s primary characteristics are:

  • Contributions are deductible from income;
  • Income generated in an RRSP is not taxable;
  • Amounts withdrawn from an RRSP will be taxed.


More recent than the RRSP, the Tax-Free Savings Account (TFSA) has its own set of rules. Contributions are limited to a yearly cumulative ceiling, which is currently $5,500. If you have unused contribution room from previous years (since 2009), it will automatically be carried forward. As such, if you contribute to a TFSA for the first time in 2018, you can contribute up to $57,500 in the plan. The TFSA’s other characteristics are:

  • Non-deductible contributions;
  • Income generated in a TFSA is not taxable;
  • Amounts withdrawn from a TFSA are not taxed.


Last but not least, the Registered Education Savings Plan (RESP) allows individuals to make contributions to a plan for with the purpose of funding a child’s post-secondary studies. Annual contributions are not limited, but the cumulative ceiling is $50,000. The RESP’s other characteristics include:

  • Non-deductible contributions;
  • Income generated in an RESP is not taxed;
  • Contributions can be reimbursed to the payer with no tax impact;
  • Earnings, paid in the form of an education assistance payment, are taxable for the plan’s beneficiary (i.e. the child studying).

Contrary to an RRSP and a TFSA, an RESP gives entitlement to government incentives. In fact, the federal and provincial governments provide a subsidy for each child beneficiary of an RESP, from birth until the year they turn 17. The maximum annual financial aid is $750 per beneficiary, that is, 30% of the first $2,500 in contributions paid yearly. Low- and medium-income families can obtain additional assistance. Each child is entitled to a maximum cumulative of $7,200 for federal purposes and $3,600 for Quebec.


To get the maximum savings possible, use each of these financial mechanisms wisely based on your saving ability. Since they have their own advantages, you need to examine their objectives properly in order to prioritize the best plan for you.

Don’t hesitate to contact your tax specialist or financial advisor to make the best investment decisions possible.

22 Nov 2018  |  Written by :

Christian Menier is a partner at Raymond Chabot Grant Thornton. He is your expert in taxation for...

See the profile