Grandfather: Difference between revisions

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imported>Doug Williamson
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1.
To exempt pre-existing arrangements from subsequent more restrictive laws or regulation.
To exempt pre-existing arrangements from subsequent more restrictive laws or regulation.


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'''Example'''
2. ''Financial reporting''
 
To continue a previous financial accounting treatment - where permitted - for pre-existing contracts or transactions, during a transition period.


''The Internal Revenue Service is extending the grandfathering protection for non-US arrangements caught under the Foreign Account Tax Compliance Act (FATCA). The protection is extended from 1 January 2013
For example, the introduction of IFRS 16 (Leases) allows pre-existing leases to continue be accounted for under the previous accounting regime, applying the new rules only to new contracts.
''to six months after the regulations are finalised, estimated to be July 2013 at the earliest. FATCA imposes US withholding taxes and significant compliance obligations on financial institutions such as banks and insurance companies.''




The Treasurer, December 2012/January 2013, page 11.
== See also==
* [[IFRS 16]]


[[Category:Regulation_and_Law]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Taxation]]
[[Category:Compliance_and_audit]]

Latest revision as of 22:03, 21 November 2017

1.

To exempt pre-existing arrangements from subsequent more restrictive laws or regulation.

Grandfathering may be applied for the full natural life of pre-existing arrangements, or for a more limited period which is considered long enough to allow new and compliant arrangements to be put in place.


2. Financial reporting

To continue a previous financial accounting treatment - where permitted - for pre-existing contracts or transactions, during a transition period.

For example, the introduction of IFRS 16 (Leases) allows pre-existing leases to continue be accounted for under the previous accounting regime, applying the new rules only to new contracts.


See also