This explains the types of financial information required from you to assist us in preparing your U.S. IRS Treasury Form FINCEN 114, 'Report of Foreign Bank and Financial Accounts' and U.S. IRS Form 8938, 'Statement of Foreign Financial Assets'.

Once you submit this form, we will send you an excel spreadsheet to assist you with compiling the required information.

A foreign financial account is any depository or custodial account maintained by a foreign financial institution outside the United States.

There are three types of assets located outside the US that need to be disclosed:

1) Financial Accounts

2) Other Foreign Financial Assets.

3) Pensions and Deferred Compensation

Please refer to Bazar McBean 'Schedule A - 1040 Supplemental Checklist' and the T1-1040 Checklist to determine whether you exceed the threshold for filing either  of the two forms.

Threshholds are expressed in US dollars.

Note: December 31 Exchange Rates for recent years for USD/CAD are provided in the list of forms.

 

For Highest Value, use the exchange Rate on the date of the Maximum Value.

 

See: https://www.bankofcanada.ca/rates/exchange/daily-exchange-rates-lookup/

 

USD account values do not require conversion. Enter these values directly under Amount Column

 

1) Foreign Financial Accounts

A foreign financial account is any depository or custodial account maintained by a foreign financial institution.

 Financial accounts include bank accounts such as savings, checking or time deposits; securities accounts such as mutual funds, brokerage
accounts, and securities derivatives or other nancial instruments accounts; accounts where the assets are held in a co-mingled fund that is a
mutual fund.

 Details of an RRSP, TFSA, RESP or RDSP must also be disclosed.

 A financial institution is an entity which accepts deposits in the ordinary course of a banking or similar business, holds financial assets for the
account of others as a substantial part of its business (e.g., a stock broker), or is engaged primarily in the business of investing, reinvesting or
trading in securities, partnership interests or commodities. A financial institution is considered to be foreign if it is not a US entity, a foreign branch of a US entity, a subsidiary of a US entity, or a US branch of a foreign bank or insurance company. Investment vehicles such as a foreign mutual fund, hedge fund, and private equity funds are also foreign financial institutions.

2) Foreign Financial Assets

Examples  of other foreign Financial assets include the following, if they are held for investment:

A share of stock or securities in a foreign entity:

A capital or profit interest in a foreign partnership;

Notes, bonds, debentures or other forms of indebtedness issued by a foreign person, company, or organization;

An interest in a foreign trust or estate;

A life insurance contract with a foreign insurer.

3) Pensions and Deferred Compensation

A vested interest in a pension plan or deferred compensation plan is also a financial asset. A vested right is a basic right that has been
granted, or has accrued, and cannot be taken away. The portion vested cannot be reclaimed by the employer, nor can it be used to satisfy the
employer's debts. Any portion not vested may be forfeited under certain conditions, such as termination of employment.

 In a defined contribution pension plan, benefits are based on contributions made; in a defined benefit plan a guaranteed benefit amount is based on
years of service, ending compensation, or some other factors. If the asset is a defined benefit plan, you may not be able to determine the value
of your interest without the assistance of an actuary; in this case, the value should be listed as zero.

 If the asset is a vested deferred compensation plan, such as a stock option plan, include the name of the company and type of plan as well as
the number and class or issue of the stock or securities (e.g., XYZ Company stock option plan 200 Class A shares). If you have exercised an
option to acquire shares under a deferred compensation plan, the shares themselves, rather than the interest in the deferred compensation
plan, should be reported.