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?

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    • Avatar of KushybKushyb
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        • CFA Level 2
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        Need help to understand Flow Trough Shares and its treatment under IFRS.

      • Avatar of SnippySnippy
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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!

        • Avatar of KushybKushyb
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            Thanks for your help 😀

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