When a financial reorganization occurs and is accounted for as such, the following requirements must be fulfilled except: The new asset and liability valuations should be fair and should not deliberately understate or overstate assets, liabilities, and earnings. Approval from the Canada Revenue Agency must be obtained before any plan is put into place. Alter the reorganization, the corporation must have a zero balance of retained earnings, although it may have contributed surplus arising from the reorganization The proposed reorganization should receive the approval of the corporation's shareholders before it is put into effect