Student Lounge What are Flow Through Shares? And how it is treated under IFRS?

What are Flow Through Shares? And how it is treated under IFRS?

  • This topic has 2 replies, 2 voices, and was last updated Dec-17 by Kushyb.
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    • Kushyb
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      Need help to understand Flow Trough Shares and its treatment under IFRS.

    • Snippy
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      @Kushyb

      Flow-through shares allow transferring of tax deductibility of resource exploration expenditures to investors. Its like a tax shelter for investors and can be claimed only upon renouncement. There’s no specific procedure under IFRS and the US GAAP is followed generally, which is to split the proceeds from the shares between the sale of the shares issued and the sale of tax benefits.

      I asked a friend, so I hope that is good enough.

      Cheers!

    • Kushyb
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      Thanks for your help 😀

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