Since March 1, 2016, a new obligation may apply when entering into a private construction contract or a contract with an employment agency: it may be necessary to obtain an Attestation from the Agence du revenu du Québec (ARQ).

Application

  • Construction contracts carried out in Quebec where the contractor and subcontractor are both required to hold a licence issued under the Building Act and where the total value before taxes of all construction contracts concluded between them after February 29, 2016 exceeds $25,000;
  • Contracts signed between employment agencies and a client (other than a public body) to alleviate workforce shortages where the total value before taxes of all contracts concluded between them after February 29, 2016 exceeds $25,000;

Subsequently, the obligation will then apply to any other contract between the parties during the calendar year or in a subsequent calendar year, regardless of the amount of the contract. However, as long as an Attestation remains valid, the parties will not have to repeat the process for a new contract.

 

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February 2016

Welcome to IFRS Newsletter – a newsletter that offers a summary of certain developments in International Financial Reporting Standards (IFRS) along with insights into topical issues.

We begin this first edition of 2016 by looking at IFRS 16 Leases, the new standard on lease accounting which was published by the International Accounting Standards Board (IASB) on January 13.

We then move on to items currently in the IASB’s pipeline before taking a look at issues that regulators are likely to focus on in the coming months.

Further on in the newsletter, you will find IFRS-related news at Grant Thornton and a general round-up of financial reporting developments. We finish with a summary of the implementation dates of newer standards that are not yet mandatory, and a list of IASB publications that are out for comment.

 

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February 2016

Overview

The Grant Thornton International IFRS team has published IFRS Viewpoint – Classification of loans with covenants.

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 considers how the existence of covenants can impact the presentation of debt on the balance sheet.

 

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January 2016

Executive Summary

On January 13, 2016 the IASB released IFRS 16 Leases, completing its long-running project on lease accounting. IFRS 16 will require lessees to account for leases “onbalance sheet’’ by recognizing a “right-ofuse” asset and a lease liability.

IFRS 16 also:

  • changes the definition of a lease;
  • sets requirements on how to account for the asset and liability, including complexities such as non-lease elements, variable lease payments and option periods;
  • provides exemptions for short-term leases and leases of low-value assets;
  • changes the accounting for sale and leaseback arrangements;
  • largely retains the IAS 17 Leases approach to lessor accounting;
  • introduces new disclosure requirements.

The Standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted in certain circumstances.