Public Sector Accounting Standards
Model Financial Statements for Government Organizations
[Consolidated] financial statements of [ABC] as at [Month day, year]
Contents
DISCLAIMER..................................................................................................................................... 1
INTRODUCTION ............................................................................................................................... 1
MANAGEMENT’S REPORT ............................................................................................................... 3
INDEPENDENT AUDITOR’S REPORT ................................................................................................ 4
[CONSOLIDATED] STATEMENT OF FINANCIAL POSITION ............................................................... 5
[CONSOLIDATED] STATEMENT OF OPERATIONS ............................................................................ 6
[CONSOLIDATED] STATEMENT OF CHANGE IN NET FINANCIAL ASSETS (DEBT)............................. 7
[CONSOLIDATED] STATEMENT OF CASH FLOWS ............................................................................ 8
NOTES TO THE [CONSOLIDATED] FINANCIAL STATEMENTS FOR THE YEAR THEN ENDED [MONTH
DAY, YEAR] ...................................................................................................................................... 9
SCHEDULE A – GOVERNMENT BUSINESS ENTERPRISES CONDENSED SUPPLEMENTARY
FINANCIAL INFORMATION ............................................................................................................ 45
SCHEDULE B - ADJUSTMENTS TO GOVERNMENT BUSINESS ENTERPRISE FINANCIAL
STATEMENTS ................................................................................................................................. 47
SCHEDULE C – SEGMENTED INFORMATION ................................................................................. 48
Disclaimer
While every effort has been made to ensure accuracy of this publication as of its release date
(February 24, 2011), accounting standards change continuously. As such, information contained
in this publication may no longer be comprehensive. This publication is not intended to cover all
aspects of Public Sector Accounting Standards (PSAB) or substitute reading the actual Standards
and Interpretations when dealing with specific issues as some information may have been
omitted that may be relevant to a particular reader. No responsibility for loss to any person
acting or refraining from acting as a result of any material in this publication can be accepted by
the Office of the Auditor General of British Columbia. Recipients should not act on the basis of
this publication without seeking professional advice.
Introduction
This publication was prepared by the Office of the Auditor General of British Columbia to assist
Provincial government organizations in British Columbia who are transitioning to PSAB from the
Canadian Institute of Chartered Accountants Handbook Part V (CICA Handbook) (i.e. the
standards prior to transition to International Financial Reporting Standards).
Government Business Enterprises
This publication would not be used by government business enterprises who, under the PSAB
framework (“Introduction to Public Sector Standards”), are directed to report under the
standards applicable to publicly accountable enterprises in the CICA Handbook. Government
business enterprises will be applying International Financial Reporting Standards (IFRS) along
with all other publicly accountable enterprises in Canada for fiscal years beginning on or after
January 1, 2011.
Timing of Transition for Organizations other than Government Business Enterprises
As directed by government in British Columbia, PSAB will be implemented for the first fiscal
year beginning on or after January 1, 2011, except for those organizations designated as
“health” or “education” sector organizations that will transition in their first fiscal year
beginning on or after January 1, 2012.
Other Government Organizations (OGOs)
Under the PSAB framework, OGOs have the option of reporting under either PSAB or standards
applicable to publicly accountable enterprises in the CICA Handbook (i.e. IFRS). In British
Columbia, all provincial OGOs have been directed by government to apply PSAB.
For most OGOs the fiscal year of transition will be the year ended March 31, 2012. Refer to the
companion document “Summary Comparison of Canadian Public Sector Accounting Standards
With the CICA Handbook Part V” for a description of the standards for the first-time adoption of
PSAB.
1
Government Not-for-Profit Organizations (GNPOs)
Under the revised PSAB framework, GNPOs will be required to follow PSAB and will no longer
follow the CICA Handbook. PSAB recently incorporated a new standard (PS 4200) providing the
option of not-for-profit accounting similar to the current existing standards specific to not-forprofit organizations in the CICA Handbook (i.e. HB 4400). However, in British Columbia, GNPOs
have been directed by government to follow PSAB without the incorporation of PS 4200.
GNPOs that are “health” or “education” sector organizations will transition in their fiscal year
ended March 31, 2013. Other GNPOs will transition in their fiscal year ended March 31, 2012.
Refer to the companion document “Summary Comparison of Canadian Public Sector Accounting
Standards With the CICA Handbook Part V” for a description of the standards for the first-time
adoption of PSAB.
Using This Publication
The government reporting entity of the province of British Columbia is comprised of many
different organizations with a multitude of transactions. No one publication can be expected to
address every type of transaction or reporting situation that may arise. The application of
accounting standards requires professional judgment. This is particularly true for PSAB as there
are a number of areas where specific guidance is not provided.
In British Columbia, provincial government organizations are expected to consult with the
Comptroller General prior to exercising any election or choice available to them under the
reporting framework and when adopting policies and practices to implement applicable
accounting standards.
2
Management’s Report
Reference PS 1200.005-6
Management’s Responsibility for the [Consolidated] Financial Statements
The [consolidated] financial statements have been prepared by management in accordance
with Canadian public sector accounting standards and the integrity and objectivity of these
statements are management’s responsibility. Management is also responsible for all of the
notes to the [consolidated] financial statements and schedules, and for ensuring that this
information is consistent, where appropriate, with the information contained in the
[consolidated] financial statements.
Management is also responsible for implementing and maintaining a system of internal controls
to provide reasonable assurance that reliable financial information is produced.
The [Board of Directors/Trustees] are responsible for ensuring that management fulfills its
responsibilities for financial reporting and internal control and exercises these responsibilities
through the [Board/Trustees]. The [Board/Trustees] reviews internal [consolidated] financial
statements on a monthly basis and external audited [consolidated] financial statements yearly.
The external auditors, [Name of the audit firm], conduct an independent examination, in
accordance with Canadian auditing standards, and express their opinion on the [consolidated]
financial statements. The external auditors have full and free access to financial management of
[ABC] and meet when required.
On behalf of [ABC]
_____________________________
[Name]
[Title]
____________________________
[Name]
[Title]
[Month Day, Year]
3
Independent Auditor’s Report
(the report of the auditor would go here)
4
[ABC]
[Consolidated] Statement of Financial Position
As at March 31, 20x2
[In thousands of dollars]
Reference
Note
March
31, 20X2
March 31,
20X1
April 1,
20X01
(Restated
- Note 2)
1200.046 (a)
1200.046 (b)
1200.046 (c)
1200.046 (d)
1200.046 (e)
1200.046 (f)
1200.046 (g)
1200.046 (h)
1200.046 (i)
3230.03 (b)
Financial assets
Cash and cash equivalents
Temporary investments
Accounts receivable
Inventories for resale and other assets held for sale
Due from government/other government organizations
Loans receivable
Portfolio investments
Investments in government business enterprises
Investments in government business partnerships
Sinking fund investments
9
10
11
12
13
14
1200.041 (a)
1200.041(b)
1200.041 (e)
1200.041 (c)
1200.041 (d)
PSG-2.24 (b)
Liabilities
Accounts payable & accrued liabilities
Employee future benefits
Due to government/other government organizations
Deferred revenue
Long term debt
Obligations under capital leases
6
7
8
9,133
7,200
2,008
25
345
542
7,253
1,456
1,247
745
29,954
9,418
5,582
3,401
30
420
517
3,580
1,568
1,344
712
26,572
9,054
6,589
2,389
27
385
505
4,216
1,751
1,248
769
26,933
16
17
18
19
20
22
6,858
776
4,396
68,979
10,000
203
91,212
(61,258)
6,319
554
4,387
70,263
8,000
192
89,715
(63,143)
6,246
664
4,352
73,399
8,500
180
93,341
(66,408)
25
54,850
785
566
56,201
56,877
811
259
57,947
59,940
2,178
2,178
64,296
Accumulated surplus (deficit)
27
(5,057)
(5,196)
(2,112)
Contingent assets
Contingent liabilities
Designated assets
Measurement uncertainty
15
23
28
34
Net financial assets (debt)
1200.053 (a)
1200.053 (b)
1200.053 (c)
1200.068
3300.15
3100.30
2130.06
Non-financial assets
Tangible capital assets
Inventories held for use
Prepaid expenses
The accompanying notes and supplementary schedules are an integral part of these [consolidated] financial statements.
Signature
Name, Title
1
Signature
Name, Title
This is the opening statement of financial position at the date of transition (PS1200.04)
5
[ABC]
[Consolidated] Statement of Operations
For the Year ended March 31, 20x2
[In thousands of dollars]
Reference
1200.074(a) & 077.081
3040.27
3070.58
1200.074(b) & 082
& .084-.085
Note
Revenues
Grants
Operating
Fees
Income from portfolio investments
Other investment income
Business enterprises
Other
Expenses
Program delivery (program 1)
Program delivery (program 2)
Program delivery (program 3)
Administration
Interest
Annual surplus (deficit)
Budget
(Note 38)
20X2
20X1
47,000
2,500
33,000
2,500
3,000
1,500
89,500
46,832
1,849
36,497
2,675
3,211
2,125
93,209
(Restated Note 2)
45,031
1,585
32,676
2,750
3,236
2,542
87,820
47,000
28,000
10,400
5,027
500
90,927
47,963
28,346
11,105
5,125
531
93,070
47,632
27,615
10,371
5,245
510
91,373
(1,427)
139
(3,553)
31
20
Accumulated surplus/(deficit) at beginning of year
(5,185)
(5,196)
(1,643)
Accumulated surplus/(deficit) at end of year
(6,612)
(5,057)
(5,196)
The accompanying notes and supplementary schedules are an integral part of these [consolidated] financial
statements.
6
[ABC]
[Consolidated] Statement of Change in Net Financial Assets (Debt)
For the Year ended March 31, 20x2
[In thousands of dollars]
Budget
(Note 38)
Reference
20X2
20X1
1200.091
Annual surplus (deficit)
(1,427)
139
(Restated Note 2)
(3,553)
1200.092
1200.093a
1200.093b
1200.093c
1200.093d
1200.093e
(Acquisition)/disposal of tangible capital assets
Amortization of tangible capital assets
(Gain)/loss on sale of tangible capital assets
Write-downs on tangible capital assets
Capitalized interest
Capitalized overhead
(3,000)
4,000
1,000
(2,231)
4,258
2,027
(826)
3,889
3,713
6,776
1200.093g
1200.093g
1200.093f
1200.093f
Acquisition of supplies inventories
Acquisition of prepaid expense
Consumption of supplies inventories
Use of prepaid expense
-
(307)
26
(281)
97
(55)
42
1200.093h
Effect of self-supported subsidiary other comprehensive
income
-
-
-
1200.094
(Increase) decrease in net financial assets (debt)
Net financial assets (debt) at beginning of year
(427)
(64,000)
1,885
(63,143)
3,265
(66,408)
1200.094
Net financial assets (debt) at end of year
(64,427)
(61,258)
(63,143)
The accompanying notes and supplementary schedules are an integral part of these [consolidated] financial
statements.
7
[ABC]
[Consolidated] Statement of Cash Flows
For the Year ended March 31, 20x2
[In thousands of dollars]
Reference
1200.100
1200.104f
1200.104c
1200.104b
1200.104j
1200.104d
1200.104e
20X2
Operating transactions
Cash received from:
Transfers
Operating
Fees, permits, licenses and fines
Interest
Business enterprises
Dividends
Other
20X1
(Restated Note 2)
47,000
1,822
37,709
2,651
2,145
2,261
93,588
45,000
1,478
32,676
3,296
2,542
2,599
87,591
Cash provided by (applied to) operating transactions
47,685
8,035
2,473
264
26,887
5,941
91,285
2,303
47,540
7,856
2,432
510
26,458
5,538
90,334
(2,743)
1200.100
1200.108b
1200.108a
Capital transactions
Proceeds on sale of tangible capital assets
Cash used to acquire tangible capital assets
Cash provided by (applied to) capital transactions
(2,231)
(2,231)
(826)
(826)
1200.100
1200.109
1200.109
1200.109
1200.109
1200.109
1200.109
1200.109
Investing transactions
Proceeds from disposals and redemptions of portfolio investments
Repayment of loans and advances
Temporary investments
Portfolio investments
Loans and advances
Investments in government business enterprises
Cash provided by (applied to) investing transactions
2,675
50
(1,618)
(3,673)
209
(2,357)
2,750
(47)
1,007
636
87
4,433
1200.100
1200.110
1200.110
Financing transactions
Debt issues
Debt retirement
Cash provided by (applied to) financing transactions
2,000
(2,000)
(500)
(500)
1200.099
(Decrease ) / Increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
(285)
9,418
364
9,054
1200.099
Cash and cash equivalents at end of year
9,133
9,418
1200.104i
1200.104h
1200.104c
1200.104j
1200.104g
1200.104g
1200.104f
Cash paid for:
Salaries and benefits
Material supplies
Services
Interest
Rent
General administration
Other
Grants and other transfers
The accompanying notes and supplementary schedules are an integral part of these
[consolidated] financial statements.
8
[ABC]
Notes to [Consolidated] Financial Statements
for the year ended March 31, 20x2
1. Nature of Operations
Reference PS 1000, 1100
[ABC] is a [type of entity] [e.g. School district, Crown corporation, Post-secondary educational
institution, Health authority, etc.] [established on date by name of legislation]and operates
under the authority of the [name of all relevant Acts]. [ABC] is a [type of organization] named in
[Schedule X] of the [Government Reporting Act] and reports to the Legislative Assembly through
the [Ministry of Y]. [ABC] has # issued shares, held by the [title of Ministry]. The mandate of
[ABC] is to provide services to […]. These services are grouped into the following key areas:
[brief description of functional line items].
[ABC] is exempt from income taxes under the Income Tax Act.
2. Conversion to Public Sector Accounting Standards
Reference PS 2125.20 - .22, PS 2120.18 - .23
Commencing with the [20X1/X2] fiscal year, [ABC] has adopted Canadian public sector
accounting (“PSA”) standards. These [consolidated] financial statements are the first
[consolidated] financial statements for which [ABC] has applied Canadian public sector
accounting standards.
The impact of the conversion to Canadian public sector accounting standards on the
accumulated surplus/deficit at the date on transition and the comparative annual surplus is
presented in note 27. These accounting changes have been applied retroactively with
restatement of prior periods. The following changes have been implemented to comply with
PSAB:
(in $ thousands)
[Temporary
Investments]
[Portfolio
investments]
[Deferred revenue]
[Account 4]
[Account 5]
2
Previously Stated2
20x0
#,###
Adjustment
20x0
(#,###)
Restated
20x0
#,###
#,###
#,###
#,###
#,###
#,###
#,###
(#,###)
#,###
(#,###)
#,###
#,###
#,###
This date is that of the opening statement of financial position at the date of transition (PS1200.04)
9
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
2. Conversion to Public Sector Accounting Standards - continued
[ABC] has elected to use the following exemptions:
a. [Retirement and post-employment benefits – brief description of nature of exemption];
b. [Business combinations– brief description of nature of exemption];
c. [Investments in government business enterprises– brief description of nature of
exemption];
d. [Government business partnerships– brief description of nature of exemption]; and
e. [Tangible capital asset impairment – brief description of nature of exemption].
3. Summary of Significant Accounting Policies
Reference PS 2100.01-.11
a. Basis of accounting
Reference PS 2100.07, .09
These [consolidated] financial statements are prepared by management in
accordance with Canadian public sector accounting standards for provincial
reporting entities established by the Canadian Public Sector Accounting Board.
b. Basis of consolidation
Reference PS 1300, .27, .35, .39
i.
Consolidated entities
The [consolidated] financial statements reflect the assets, liabilities, revenues,
and expenses of the reporting entity, which is composed of all organizations,
which are controlled by [ABC]. These organizations are [names of entities or
cross reference to list elsewhere in the notes to the financial statements.]
All the organizations are fully consolidated except for government business
enterprises, which are accounted for by the modified equity method. (see note
(ii) below)
[All inter-departmental and inter-entity accounts and transactions between
these organizations are eliminated upon consolidation].
Adjustments are made for [Crown corporations, agencies and entities] whose
fiscal year-ends are different from [ABC]’s fiscal year-end of [month day]. Those
entities are [name of entities].
10
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
3. Summary of Significant Accounting Policies (continued)
ii. Investment in government business enterprises
[ABC] consolidates business enterprises using the modified equity method.
These business enterprises are [names of enterprises or cross reference to list
elsewhere in the notes to the financial statements].
Under the modified equity method of accounting, only [ABC]’s investment in the
business enterprise and the enterprise’s net income and other changes in equity
are recorded. No adjustment is made for accounting policies of the enterprise
that are different from those of [ABC], except that any other comprehensive
income of the business enterprise is accounted for as an adjustment to the
accumulated [surplus or deficit]. Inter-organizational transactions and balances
are not eliminated, except for any profit or loss on the sale between entities of
assets that remain within the reporting entity.
iii.
Trusts under administration
Trusts administered by [ABC] are not [consolidated] in the financial statements
as they are not controlled by [ABC].
c. Cash and cash equivalents
Reference PS 1200.96 & 97
Cash and cash equivalents include [cash on hand, demand deposits and short-term
highly liquid investments] that are readily convertible to known amounts of cash and
that are subject to an insignificant risk of change in value. These short-term
investments generally have a maturity of three months or less at acquisition and are
held for the purpose of meeting short-term cash commitments rather than for
investing.
d. Temporary investments
Reference PS 3030.03, .05
Temporary investments include [short-term investments] recorded at the lower of
cost or market value.
e. Inventories for resale and other assets held for sale
Reference PS 1000.60(b), 1100.23, 1200.48, 1200.51
11
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
3. Summary of Significant Accounting Policies (continued)
Inventories held for resale including [description of all inventories for resale] are
recorded at the lower of cost or net realizable value.
Assets held for sale are those expected to be sold within one year. They are valued
at the lower of cost or expected net realizable value. Cost includes amounts for
improvements to prepare the assets for sale.
f. Loans receivable
Reference PS 3050.54
Loans receivable are recorded at cost less any amount for valuation allowance.
Valuation allowances are made when collection is in doubt. Interest is accrued on
loans receivable to the extent it is deemed collectable.
g. Portfolio investments
References PS 3040.25, 26 & .28
[ABC] invests in [description of the investments] [e.g. long and short duration fixed
term investments, publicly traded equities on a segregated basis (held directly), and
through pooled fund products managed by the British Columbia Investments
Management Corporation (bcIMC), a corporation established under the Public Sector
Pension Plans Act.] They are reported at cost less any write-downs associated with a
loss in value that is other than a temporary decline. A write-down of a portfolio
investment to reflect a loss in value is not reversed for a subsequent increase in
value. Discounts and premiums arising on the purchase of these investments are
amortized over the term of the investments.
[Note: Proposed changes to the measurement and presentation of financial instruments will
apply to fiscal years beginning on or after April 1, 2012, and will impact these sample
disclosures. Refer to the accompanying Summary Comparison of PSAB with the CICA
Handbook which summarizes the proposed changes.]
12
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
3. Summary of Significant Accounting Policies (continued)
h. Employee future benefits
Reference PS 3250.100-104
i.
The employees of [ABC] belong to the [name of pension plan, e.g. Public
Service Pension Plan], which is a multi-employer joint trustee plan. This plan
is a defined benefit plan, providing a pension on retirement based on the
member’s age at retirement, length of service and highest earnings averaged
over five years. Inflation adjustments are contingent upon available funding.
The joint trustee board of the plan determines the required plan
contributions annually.
The contribution of [ABC] to the plan is recorded as an expense for the year.
ii.
The costs of insured benefits reflected in these [consolidated] financial
statements are the employer’s portion of the insurance premiums owed for
coverage of employees during the period.
iii.
The cost of non-vesting sick leave benefits are actuarially determined using
management’s best estimate of salary escalation, accumulated sick days at
retirement, long-term inflation rates and discount rates.
[Note: These sample disclosures reflect only those employee future benefits that are typical
of organizations within the Government Reporting Entity. For example, these notes do not
include sample disclosures for stand-alone defined benefit pension plans.]
i. Deferred revenue
Reference PS 3100.10-11
Certain amounts are received pursuant to legislation, regulation or agreement and
may only be used in the conduct of certain programs or in the delivery of specific
services and transactions. These amounts are recognized as revenue in the fiscal
year the related expenses are incurred, services are performed or when stipulations
are met.
[Note: Recently approved changes to standards for government transfers will impact
accounting policies regarding recognition and deferral by transferors and recipients for fiscal
years beginning on or after April 1, 2012. Refer to the accompanying Summary Comparison
of PSAB with the CICA Handbook which summarizes the changes.]
13
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
3. Summary of Significant Accounting Policies (continued)
j. Liability for contaminated sites
Reference PS 3260.65
Contaminated sites are a result of contamination being introduced into air, soil,
water or sediment of a chemical, organic or radioactive material or live organism
that exceeds an environmental standard. The liability is recorded net of any
expected recoveries. A liability for remediation of contaminated sites is recognized
when all the following criteria are met:
i. an environmental standard exists;
ii. contamination exceeds the environmental standard;
iii.
[ABC]:
o is directly responsible; or
o accepts responsibility; and
iv. a reasonable estimate of the amount can be made.
[Note: PS 3260 was issued in June 2010 and will apply for periods beginning on or after
April 1, 2014, although earlier adoption is encouraged.]
k. Tangible capital assets including capital leases
Reference PS 3150. 31-33, 40-42, PSG-2.24
Tangible capital assets are recorded at cost, which includes amounts that are directly
related to the acquisition, design, construction, development, improvement or
betterment of the assets. Cost includes overhead directly attributable to
construction and development, as well as interest costs that are directly attributable
to the acquisition or construction of the asset.
Capital lease obligations are recorded at the present value of the minimum lease
payments excluding executor costs (e.g. insurance, maintenance costs, etc.). The
discount rate used to determine the present value of the lease payments is the
lower of [ABC]’s rate for incremental borrowing or the interest rate implicit in the
lease. Note 22 provides a schedule of repayments and amount of interest on the
leases.
14
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
3. Summary of Significant Accounting Policies (continued)
The cost, less residual value, of the tangible capital assets, excluding land, is
amortized on a straight-line basis over their estimated useful lives as follows:
Land improvements
Building
Furniture and equipment
Computer hardware and software
Leasehold improvements
## years
## years
## years
## years
## years
Tangible capital assets are written down when conditions indicate that they no
longer contribute to [ABC]’s ability to provide goods and services, or when the value
of future economic benefits associated with the tangible capital assets are less than
their net book value. The net write-downs are accounted for as expenses in the
[consolidated] statement of operations.
Contributed capital assets are recorded into revenues at their fair market value on
the date of donation, except in circumstances where fair value cannot be reasonably
determined, which are then recognized at nominal value. Transfers of capital assets
from related parties are recorded at carrying value.
[ABC] has recorded additions relating to [description of additions] at nominal value.
Works of art, historical treasures, intangible assets and items inherited by right of
the Crown, such as [name of the item, e.g. forest, water and mineral resources], are
[not] recognized in these [consolidated] financial statements.
l. Asset retirement obligations
Reference: PSAB does not have a specific standard addressing asset retirement obligations. Refer to
GAAP Hierarchy in PS 1150 for other sources of GAAP, which may include international
financial reporting standards or Canadian accounting standards for private enterprises.
Liabilities are recognized for statutory, contractual or legal obligations, associated
with the retirement of property, plant and equipment when those obligations result
from the acquisition, construction, development or normal operation of the assets.
The obligations are measured initially at fair value, determined using present value
methodology, and the resulting costs capitalized into the carrying amount of the
related asset. In subsequent periods, the liability is adjusted for the accretion of
discount and any changes in the amount or timing of the underlying future cash
15
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
3. Summary of Significant Accounting Policies (continued)
flows. The capitalized asset retirement cost is amortized on the same basis as the
related asset and the discount accretion is included in determining the results of
operations.
m. Inventories of supplies
Reference PS1000.60 (a), 1100.24, 1200.62
Inventories of supplies include [add description] and are recorded at the lower of
historical cost and replacement cost.
n. Prepaid expenses
Reference PS1100.24, 1200.63
Prepaid expenses include [add description] and are charged to expense over the
periods expected to benefit from it.
o. Funds and reserves
Reference PSG-4
Certain amounts, as approved by the [name or title of the approver, e.g. Board of
Directors/Trustees], are set aside in accumulated surplus for future operating and
capital purposes. Transfers to/from funds and reserves are an adjustment to the
respective fund when approved.
p. Revenues
Reference PS 1200.77 -.81, PS 3410.54 -.58
Revenues are recognized in the period in which the transactions or events occurred
that gave rise to the revenues. All revenues are recorded on an accrual basis, except
when the accruals cannot be determined with a reasonable degree of certainty or
when their estimation is impracticable.
Transfers (revenues from non-exchange transactions) are recognized as revenues
when the transfer is authorized, any eligibility criteria are met, and reasonable
estimates of the amounts can be made. Transfers are recognized as deferred
revenue when amounts have been received but not all eligibility criteria have been
met.
16
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
3. Summary of Significant Accounting Policies (continued)
[Note: Recently approved changes to standards for government transfers will impact
accounting policies regarding recognition and deferral by transferors and recipients for fiscal
years beginning on or after April 1, 2012. Refer to the accompanying Summary Comparison
of PSAB with the CICA Handbook which summarizes the changes.]
q. Tax revenue
Reference PS 3510.45
[Note: An entity that records tax revenues should disclose, for each major category of tax,
the accounting policies for the recognition of tax revenue, and the policies for the recognition
of tax receivables if they are different from other receivables.]
r. Expenses
Reference PS 1200.082-0.88, PS 3410.54-.58
Expenses are reported on an accrual basis. The cost of all goods consumed and
services received during the year is expensed. Interest expense includes debt
servicing costs such as amortization of discounts and premiums, foreign exchange
gains and losses, and issuance costs.
Transfers include entitlements, grants and transfers under shared cost agreements.
Grants and transfers are recorded as expenses when the transfer is authorized,
eligibility criteria have been met by the recipient and a reasonable estimate of the
amount can be made. Transfers are recognized as prepaid expenses when not all
eligibility criteria have been met.
[Note: Recently approved changes to standards for government transfers will impact accounting
policies regarding recognition and deferral by transferors and recipients for fiscal years
beginning on or after April 1, 2012. Refer to the accompanying Summary Comparison of PSAB
with the CICA Handbook which summarizes the changes].
s. Foreign currency translation
Reference PS 2600.09-.17
Monetary assets denominated in foreign currencies are translated into Canadian
dollars at the exchange rate prevailing at year-end. Foreign currency transactions
are translated at the exchange rate prevailing at the date of the transactions unless
hedged by forward contracts that specify the rate of exchange. Monetary liabilities
denominated in foreign currencies are translated into Canadian dollars at the
exchange rate prevailing at year-end unless hedged, in which case they are valued at
17
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
3. Summary of Significant Accounting Policies (continued)
the hedge amount. Adjustments to revenue or expense transactions arising as a
result of foreign currency translation are credited or charged to operations at the
time the adjustments arise.
Unrealized foreign currency gains and losses on long-term monetary assets and
liabilities are reported as a component of [describe financial position line item] and
amortized over the remaining terms of the related items on a straight-line basis.
[Note: Proposed changes to accounting for foreign currency translation will apply to fiscal years
beginning on or after April 1, 2012, and will impact these sample disclosures. Refer to the
accompanying Summary Comparison of PSAB with the CICA Handbook which
summarizes the proposed changes].
t. Measurement uncertainty
Reference PS 2130.06 -.08
The preparation of [consolidated] financial statements in conformity with Canadian
public sector accounting standards, requires management to make estimates and
assumptions that affect the reporting amounts of assets and liabilities, and
disclosure of contingent assets and liabilities, at the date of the [consolidated]
financial statements and the reported amounts of the revenues and expenses during
the period. Items requiring the use of significant estimates include [enter significant
estimates here, e.g. the useful life of capital assets, estimated employee benefits,
rates for amortization, impairment of assets, liability for contaminated sites, etc.].
Estimates are based on the best information available at the time of preparation of
the [consolidated] financial statements and are reviewed annually to reflect new
information as it becomes available. Measurement uncertainty exists in these
[consolidated] financial statements. Actual results could differ from these estimates.
18
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
4. Changes in Accounting Policies
Reference: PS 2120.18-.23
[ABC] adopted the following new accounting policies:
1. [Header]
On [month day, year], [ABC] adopted the PSA Handbook Section [PS XXXX] “[Name
of Section]”, which replaced the existing [Name of Section] standard. The new
standard includes the requirement for [recognition, measurement, presentation and
disclosure of…] and is effective for years beginning on or after [month day, year].
This accounting change had [no] significant impact on [ABC]’s [consolidated]
financial statements.
2. [Header]
Prior to [month day, year], [explanation of previous accounting policy].
However, [ABC] has changed the basis of [measurement, recognition, presentation
and disclosure…] of [Header]. The reason for the change is that the [explanation]
better reflect the [financial position…] by [ABC]. The change in accounting policy is
applied [retrospectively/prospectively…] and there was [no/an] effect on the
[consolidated] statement of financial position of [ABC] as at [month day, year], and
the [consolidated] statement of operations of [ABC] for the financial year then
ended.
(in $ thousands)
[Account 1]
[Account 2]
Previously Stated
20x1
#,###
#,###
Adjustment
20x1
(#,###)
#,###
Restated
20x1
#,###
#,###
[Note: These are changes in accounting policies that are distinct from the first-time adoption of PSAB,
which is disclosed in Note 2.]
19
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
5. Prior Period Adjustments
Reference PS 2120.34
[ABC] has determined that [description of error].
As a result, [describe change, including dollar amount, for each financial statement line item
affected in current and prior year, and cumulative effect on opening equity in current and prior
year, and cumulative effect on surplus/deficit in prior year].
[Note 1: PS 2120 also addresses presentation and disclosure requirements relating to changes in
estimates.]
[Note 2: Changes in accounting policies are disclosed in notes 2 and 4. These notes are for other prior
year adjustments – i.e. correction of errors.]
6. Cash and Cash Equivalents
Reference PS 1200.118
Restricted cash
Unrestricted cash, demand deposits and guaranteed
investment certificates
(in $ thousands)
20X2
20X1
#,###
#,###
#,###
#,###
#,###
#,###
Restricted cash is [description, e.g. endowment funds].
7. Temporary Investments
Reference PS 3030.03 - .05
Marketable securities, at cost
Less provision for decline in value
(in $ thousands)
20X2
20X1
(Restated –
note 2)
#,###
#,###
(#,###)
(#,###)
#,###
#,###
Marketable securities have a quoted market value of $#,### (20X1: $#,###)
[Note: Proposed changes to the measurement and presentation of financial instruments will apply to
fiscal years beginning on or after April 1, 2012, and will impact these sample disclosures. Refer to the
accompanying Summary Comparison of PSAB with the CICA Handbook which summarizes the proposed
changes.]
20
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
8. Accounts Receivable
Reference PS 1200.047
Revenues receivable
Accrued interest
Less provision for doubtful accounts
(in $ thousands)
20X2
20X1
#,###
#,###
#,###
#,###
(#,###)
(#,###)
#,###
#,###
9. Due from Government and Other Government Organizations
Reference PS 1200.047
Federal government
Provincial government
Other government organizations
(in $ thousands)
20X2
20X1
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
10. Loans Receivable
Reference PS 3050.056
[First significant class of loans] bearing interest at x%, repayable
[repayment terms]
[Second significant class of loans] bearing interest at x%,
repayable [repayment terms]
Less provision for doubtful accounts
(in $ thousands)
20X2
20X1
#,###
#,###
#,###
#,###
(#,###)
#,###
(#,###)
#,###
[Describe security held for each class of loans].
[For loans denominated in foreign currencies, also disclose the currency, amount, and Canadian
dollar equivalent].
21
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
11. Portfolio Investments
Reference PS 3040.28, 1200.127
(in $ thousands)
Market value
Carrying value
20X2
20X1
20X2
20X1
(Restated
– Note 2)
Investments in pooled funds
[Name of the item]
[Name of the item]
Investments held directly
[Name of the item]
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
As of [Month day, year], [ABC]’s investments [did not exceed the legislative investment limit]
[exceeded the legislative investment limit by approximately $#,###.]
[Note: Proposed changes to the measurement and presentation of financial instruments will apply to
fiscal years beginning on or after April 1, 2012, and will impact these sample disclosures. Refer to the
accompanying Summary Comparison of PSAB with the CICA Handbook which summarizes the proposed
changes.]
22
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
12. Investments in Government Business Enterprises
Reference PS3070.60 (a) – (f)
[ABC] owns [#%] of [name of business enterprise]
Equity in [name of enterprise]
Investment in [Name of enterprise]
Unremitted earnings
Other comprehensive income
(in $ thousands)
20x2
20x1
###
###
##,###
##,###
#
#
###,###
###,###
Change in equity in [name of business enterprise]
Equity at beginning of year
Additional investment
Contributions paid
Net earnings/(loss)
Other comprehensive income/(loss)
Equity at end of year
(in $ thousands)
20x2
20x1
###,###
###,###
###
(###)
###
##,###
(#)
#
###,###
###,###
[Provide disclosure of any transactions and balances with government business enterprises].
Refer to schedule A for condensed supplementary financial information of government
business enterprises that are part of [ABC]’s reporting entity.
Refer to schedule B for adjustments made to net assets or net income as shown in government
business enterprises’ financial statements, to arrive at the amount included in [ABC]’s
consolidated statement of financial position and consolidated statement of operations.
23
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
13. Investments in Government Partnerships
Reference PS 3060.55-57
[Name of the entity to which ABC is a partner] owns and operates the [activities undertaken by
the partnership] for [name of the organization/recipients/entities, etc.] [ABC] provides
contributions to fund its operations. [Name of the entity to which ABC is a partner]’s financial
results are proportionately consolidated with those of [ABC] based upon [ABC]’s share of its
total contributions of [#% (20X1: #%)].
[Description of the entity’s share of any contingencies and contractual obligations of
government partnerships and those contingencies that exist when ABC is contingently liable for
the liabilities of other parties in the entity’s statement of position].
The amounts included in these consolidated financial statements are as follows:
[Consolidated] Statement of Financial Position
Financial assets
Liabilities
Net Liabilities
Non-financial assets
Accumulated surplus (deficit)
(in $ thousands)
20X2
20X1
#,###
#,###
#,###
#,###
(#,###)
(#,###)
#,###
#,###
#,###
#,###
[Consolidated] Statement of Operations
Revenue
Expenses
Surplus (deficit) for the year
Accumulated surplus (deficit) – beginning of year
Accumulated surplus (deficit) – end of year
(in $ thousands)
20X2
20X1
#,###
#,###
(#,###)
(#,###)
#,###
#,###
#,###
#,###
#,###
#,###
24
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
14. Sinking Fund Investments
Reference PS 3230.03-.04
These externally restricted sinking funds have been set aside to retire long-term debt.
(in $ thousands)
20X2
20X1
[E.g. first type of investment - have a market value of $###
###
###
(20X1: $###), with yields ranging from x% to y%. Maturity dates
range from (month day, year) to (month day, year)].
[E.g. second type of investment - have a market value of $###
###
###
(20X1: $###), with yields ranging from x% to y%. Maturity dates
range from (month day, year) to (month day, year)].
[E.g. third type of investment - have a market value of $###
###
###
(20X1: $###), with yields ranging from x% to y%. Maturity dates
range from (month day, year) to (month day, year)].
###
###
15. Contingent Assets
Reference PS 1200.068-.069
[ABC] has the following contingent assets where the estimated or known assets are, or exceed
[$# at (Month day, year) (20X1: $#)]. Collection of these assets is dependent on the [describe
nature of future event that will confirm existence of asset]. Contingent assets are not recorded
in the [consolidated] financial statements.
16. Accounts Payable and Accrued Liabilities
Reference PS 1200.42
Accounts payables and accrued liabilities
Salaries and benefits payable
Accrued vacation pay
Other
(in $ thousands)
20X2
20X1
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
25
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
17. Employee Future Benefits
Reference PS 3250.100-104, PS 3255.35-36 (Note that PS 3250 provides a number of examples in appendix B)
[ABC] and its employees contribute to the [name of the benefit plan] in accordance with the
[name of the applicable Act]. [Name of the entity responsible] administers the plan,
including payment of pension benefits to employees to whom the act applies. [Name of the
benefit plan] is a multi-employer, defined benefit plan.
Information about obligations for retirement benefits and other employee future benefits is
as follows:
a. Retirement and other employee future benefit liabilities
Retirement
Benefits
Accrued employee future benefit
obligations, end of year
Unamortized actuarial loss, end of
year
Employee future benefits liability,
end of year
(in $ thousands)
20X2
Other
Total
Employee
Employee
Benefits
Benefits
20X1
Total
Employee
Benefits
###,###
##,###
###,###
###,###
(##,###)
-
(##,###)
(##,###)
$ ###,###
$ ##,###
$ ###,###
$ ###,###
b. Retirement and other employee future benefit expenses
(in $ thousands)
20X2
Retirement
Other
Total
Benefits
Employee
Employee
Benefits
Benefits
Current year benefit cost
##,###
#,###
##,###
Interest on accrued benefit obligation
##,###
#,###
##,###
Recognized actuarial gains
#,###
#,###
Employee future benefit expenses
$ ###,###
$ #,###
$ ###,###
20X1
Total
Employee
Benefits
##,###,
##,###
#,###
$ ###,###
26
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
17. Employee Future Benefits (continued)
c. Retirement benefits
i. Pension plan
[ABC] and its employees contribute to the [name of the Pension Plan] in accordance with
the [name of the Act or legislation]. The plan provides defined pension benefits to
employees based on their length of service and rates of pay. The maximum contribution
rate for eligible employees was [#% (20X1: #%)]. [ABC]’s contributions equal the
employee contributions to the plan. During the year ended [Month day, year], [ABC]
contributed [$# (20X1: $#)] to the plan. These contributions are the [ABC]’s pension
benefit expense. The amount of benefits paid during the year was [$# (20X1: $#)]. No
pension liability for this type of plan is included in the [consolidated] financial
statements.
ii. Retirement gratuities
[ABC] provides retirement gratuities to [certain employee groups]. The amount of
gratuities paid to eligible employees at retirement is based on their salary, accumulated
sick days and years of service at retirement. [ABC] provides these benefits through an
unfunded defined benefit plan. The cash payments made to employees in the current
period upon retirement amounted to [$# (20X1: $#)]. The benefit costs and liabilities
related to this plan are included in the [consolidated] financial statements.
iii. Retirement life insurance and health care benefits
[ABC] continues to provide life insurance, dental and health care benefits to [certain
employee groups] after retirement until members reach 65 years of age. [ABC] provides
these benefits through an unfunded defined benefit plan. The benefit costs and liabilities
related to this plan are included in the [consolidated] financial statements.
iv. Vested and non-vested sick-leave payouts
[ABC] provides vested sick-leave payouts on retirement [to certain employee groups].
The cash payments made to employees in the current period upon retirement amounted
to [$# (20X1: $#)]. The benefit costs and liabilities related to this plan are included in the
[consolidated] financial statements.
All employees are credited (#) days per month for use as paid absences in the year, due
to illness or injury. Employees are allowed to accumulate unused sick day credits each
year, up to the allowable maximum provided in their respective employment agreement.
Accumulated credits may be used in future years to the extent that the employee’s
illness or injury exceeds the current year’s allocation of credits. The use of accumulated
27
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
17. Employee Future Benefits (continued)
sick days for sick-leave compensation ceases on termination of employment. The benefit
costs and liabilities related to the plan are included in the [consolidated] financial
statements.
d. Other employee future benefits
i. Workplace safety and insurance board obligations
[ABC] is an employer under the Workers Compensation Act part 3 (“Act”)and, as such,
assumes responsibility for the payment of all claims to its injured workers under the Act.
[ABC] does not fund these obligations in advance of payments made under the Act. The
benefit costs and liabilities related to this plan are included in the [consolidated] financial
statements.
ii. Long-term disability life insurance and health care benefits
[ABC] provides life insurance, dental and health care benefits to employees on long-term
disability leave for a period of two years after the date of disability. The insurance carrier
waives the life insurance premium for employees on long-term disability; however, [ABC]
is responsible for the payment of the costs of health care payments under this plan.
[ABC] provides these benefits through unfunded defined benefit plan. The costs of salary
compensation paid to employees on long-term disability leave are fully insured and not
included in this plan.
The accrued benefit obligations for employee future benefit plans as at [Month day,
year], are based on an actuarial valuation for accounting purposes as at [Month day,
year], with adjustments based on additional information provided to the actuary in
[year].
The actuarial valuation is based on assumptions about future events. The economic
assumptions used in these valuations are the [ABC]’s best estimates of expected rates of:
Inflation
Wages and salary escalation
Interest (discount rate on accrued benefit obligations)
20X2
#.##%
#.##%
#.##%
20X1
#.##%
#.##%
#.##%
e. [ABC] has a designated reserve fund for certain employee future benefit obligations. The
balance of this reserve fund totalled [$# (20X1: $#)]. The reserve fund is part of the
accumulated surplus.
28
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
18. Due to Government and Other Government Organizations
Reference PS 1200.42
(in $ thousands)
20X2
20X1
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
Federal government
Provincial government
Other government organizations
19. Deferred Revenue
Reference PS3100.14-.19, 3100.18
Deferred revenues are set aside for specific purposes as required either by legislation,
regulation or agreement as at [Month day, year]:
[Deferred revenue type 1]
[Deferred revenue type 2]
[Deferred revenue type 3]
Balance at
beginning of
year
[Restated –
note2]
###,###
###,###
###,###
###,###
(in $ thousands)
Receipts
Transferred
during year to revenue
Balance at
end of year
###,###
###,###
###,###
###,###
###,###
###,###
###,###
###,###
###,###
###,###
###,###
###,###
[Describe nature of revenue, reason for deferral and recognition criteria for each type of
deferred revenue, e.g. tuition, endowments, funding under agreement, etc.]
[Note: Recently approved changes to standards for government transfers will impact accounting policies
regarding recognition and deferral by transferors and recipients for fiscal years beginning on or after
April 1, 2012. Refer to the accompanying Summary Comparison of PSAB with the CICA Handbook which
summarizes the changes.]
29
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
20. Long-Term Debt
Reference PS 3230.15, .17-18, .24-25, , 2600.48b/c
Long-term liabilities reported on the [consolidated] statement of financial position are
comprised of the following:
(in $ thousands)
20X2
20X1
[E.g. Demand loan payable to Royal Bank of Canada,
bearing interest at #.##%, repayable in blended monthly
principal and interest payments of $##,###, due January
10, 2013]
[E.g. Demand loan payable to Royal Bank of Canada,
bearing interest at #.##%, repayable in blended monthly
principal and interest payments of $##,###, due January
10, 2015, secured by automotive and computer
equipment, which have a carrying value of $###,###]
[E.g. DEF Debenture for QRS expenditures, bearing interest
at #.##%, repayable in blended semi-annual principal and
interest payments of $##,###, due November 15, 2030,
secured by land and building, which has a carrying value of
$###,###]
##,###
##,###
##, ###
##, ###
##, ###
##, ###
##, ###
##, ###
a) Principal repayments
Anticipated annual principal repayments over the next five years and thereafter are as follows:
20X3
20X4
20X5
20X6
20X7
20x8 – 20xx
##,###
##,###
##,###
##,###
##,###
##,###
$##,###
30
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
20. Long-Term Debt (continued)
Interest expense for the year on outstanding debt
(in $
thousands)
20X2 20X1
### ###
Interest received from [business enterprise subsidiaries] for debt issued on their
behalf
Net interest expense reported on the [consolidated] statement of operations
###
###
###
###
[The details of any defaults of (ABC) in principal, interest, sinking fund or redemption provisions
with respect to any outstanding obligation, e.g. (ABC) defaulted on a demand loan payable on
(Month day, year) to (…), bearing interest at (#%) with a principal outstanding of ($#,###,###).]
As of [Month day, year], [ABC]’s legislative debt limit [did or did not] exceed the actual debt by
approximately [$###, ### (20X1: $###,###)].
b) Sinking fund instalments and retirement provisions
Aggregate payments for the next five fiscal years and thereafter to meet sinking fund
instalments on externally restricted sinking funds and retirement provisions on notes, bonds
and debentures are:
(in $ thousands)
20X3
#,###
20X4
#,###
20X5
#,###
20X6
#,###
20X7
#,###
20X8-20XX
#,###
$ #,###
31
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
21. Risk Management and Derivative Financial Instruments
Reference PS2600.48 (a) - (e)
[Description of ABC’s policy for managing foreign currency risk for example, through hedges,
including a general description of the nature of the hedges undertaken to mitigate currency
exposure, the method for assessing hedge effectiveness, and information about the magnitude
of hedging activities]
The following table presents maturity schedules of [ABC]’s derivatives by type, outstanding at
[Month day, year], based on the notional amounts of the contracts.
Year of
Maturity
20X3
20X4
Total
(in $ thousands)
Derivative
[Long Term Debt]
Other Financial Liabilities
Currency Swaps amounts
Currency Swaps amounts
to be exchanged
to be exchanged
(Receive)
Pay
(Receive)
Pay
$
$
$
$
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
Total
$
#,###
#,###
#,###
[ABC] has [$#,### (20X1: $#,###)] of unhedged foreign denominated monetary items at [Month
day, year].
The following table presents the aggregate amount in Canadian dollars for each major currency
estimated to be required in each of the next five years and thereafter to meet sinking fund or
retirement provisions for the foreign denominated debt.
20X3
20X4
20X5
20X6
20X7
20x8 – 20xx
[Currency 1]
[Currency 2]
[Currency 3]
[Currency 1]
[Currency 3]
[Currency 1]
[Currency 1]
[Currency 3]
[Currency 1]
$ #,###
#,###
#,###
#,###
#,###
#,###
$ ##,###
32
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
21. Risk Management and Derivative Financial Instruments (continued)
[Relevant financial statement line] includes foreign exchange gains of [$#, ### (20X1: $#,###)]
and [relevant financial statement line] includes foreign exchange losses of [$ #,### (20X1:
$#,###)].
The following table presents the sensitivity analysis illustrating the impact on unhedged foreign
currency denominated monetary item of foreign exchange rate changes.
Year ended [Month day]
Reasonable possible changes in market risks
[##% change in Cdn. $:U.S.$ exchange rate]
Canadian dollar appreciates
Canadian dollar depreciates
[## basis point change in market interest rate]
Rate increases
Rate decreases
(in $ thousands)
Surplus (deficit) for
the year
$
(##,###)
##,###
(##,###)
##,###
[Note: Proposed changes to the measurement and presentation of financial instruments will apply to
fiscal years beginning on or after April 1, 2012, and will impact these sample disclosures. Refer to the
accompanying Summary Comparison of PSAB with the CICA Handbook which summarizes the proposed
changes.]
33
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
22. Obligations under Capital Leases
Reference PSG-2 24
[Description of major leases including interest rates, expiry dates and significant conditions of
the lease agreement including future contractual obligations, purchase options, terms of
renewal and contingencies, and circumstances that require or result in the entity’s continuing
involvement in the contractual arrangement].
Repayments are due as follows:
20X3
20X4
20X5
20X6
20X7
20x8 – 20xx
Total minimum lease payments
Less amounts representing interest (at prime plus [#%])
Present value of net minimum capital lease payments
(in $ thousands)
20X2
20X1
$ ##
$ ##
##
##
##
##
##
##
###
##
###
###
$ ###
$ ###
(###)
(###)
$ ###
$ ###
Total interest on leases for the year was [$## (20X1: $##)].
23. Contingent Liabilities
Reference PS 3310.31-32, 3300.27-28
a. Guaranteed Debt
[ABC] has provided loan guarantees in respect of the debt of [name of entity]. The guarantee
covers loans up to [$### (20X1: $###)]. At [March 31, 20X2], the amount of the principal
outstanding under this guarantee was [$## (20X1: $##)].
b. Legal liabilities
[ABC] has been named as the defendant in [general description of existing/pending/potential
lawsuits], in which damages have been sought. These matters may give rise to future liabilities.
The [estimated] amount claimed is $####. The outcome of these actions is not determinable as
at [Month day, year], and accordingly, no provision has been made in these [consolidated]
financial statements for any liability that may result. Any losses arising from these actions will
be recorded in the year in which the related litigation is settled.
[Note: disclosure of the extent of the potential liability, the amount claimed, is not provided if to do so
would have an adverse effect on the outcome.]
34
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
24. Liability for Contaminated Sites
Reference PS 3260.65
[ABC] recognizes and estimates a liability of [$# (20X1: $#)] for remediation of [name of the
contaminated sites] using [name of the valuation technique]. The nature of the liability is
[description of the nature of the liability including the event or transaction creating the
liability]. The assumptions used in estimating the liability include [descriptions of assumptions
and measurement basis used]. The amount of estimated recoveries is [$# (20X1: $#)].
[Note: PS 3260 was issued in June 2010 and will apply for periods beginning on or after April 1,
2014, although earlier adoption is encouraged].
35
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
25. Tangible Capital Assets
Reference PS 3150.40, PSG-2.24(a), 1200.018
[March 31, 20x2]
(in $ thousands)
$
$
$
$
$
Buildings
under
capital
lease3
$
Cost
Opening Balance
Additions
Disposals
Write-downs
Closing Balance
##,###,###
###
(#)
##,###,###
#,###,###
###,###
(#,###,###)
#,###,###
#,##,###
###,###
#,###,###
#,###,###
###,###
#,###,###
###,###
###,###
###,###
#,###
###
#,###
###,###,###
##,###,###
(#,###,###)
###,###,###
Accumulated Amortization
Opening Balance
Amortization
Disposals
Write-downs
Closing Balance
Net book value
(###)
(##)
#
#
(###)
##,###,###
##,###
##,###
(#,###,###)
(#,###,###)
###,###
###,###
###,###
###,###
###,###
#,##,###
###,###
###,###
###,###
#,###,###
###,###
###,###
###,###
###,###
#,###
###
#,###,###
#,###,###
(#,###,###)
(#,###,###)
##,###,###
###,###,###
Land and land
improvements
Buildings
Furniture and
equipment
Computer
hardware
and software
Leasehold
improvements
#,###
#,###
20X2
Total
$
Interest: Additions to [buildings] includes capitalized interest of [$#,###].
Cost at [March 31, 20X2] includes work in progress as follows:
[E.g. Buildings
$###]
[E.g. Computer hardware
$###]
3
[A separate column is required to disclose each class of asset under capital lease]
36
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
25. Tangible Capital Assets (continued)
Reference PS 3150.40, PSG -2.24(a), 1200.18
[March 31 , 20x1]
(in $ thousands)
$
$
$
Computer
hardware
and software
$
Cost
Opening Balance
Additions
Disposals
Write-downs
Closing Balance
##,###,###
###
(#)
##,###,###
#,###,###
###,###
(#,###,###)
#,###,###
#,##,###
###,###
#,###,###
Accumulated Amortization
Opening Balance
Amortization
Disposals
Write-downs
Closing Balance
Net book value
(###)
(##)
#
#
(###)
##,###,###
##,###
##,###
(#,###,###)
(#,###,###)
###,###
###,###
###,###
###,###
###,###
#,##,###
Land and land
improvements
Buildings
Furniture and
equipment
$
Buildings
under capital
lease4
$
#,###,###
###,###
#,###,###
###,###
###,###
###,###
#,###
###
#,###
###,###,###
##,###,###
(#,###,###)
###,###,###
###,###
###,###
###,###
#,###,###
###,###
###,###
###,###
###,###
#,###
###
#,###,###
#,###,###
(#,###,###)
(#,###,###)
##,###,###
###,###,###
Leasehold
improvements
#,###
#,###
20X1
Total
$
.
Interest: Additions to [buildings] includes capitalized interest of [$#,###].
Cost at [March 31, 20X1], includes work in progress as follows:
[E.g. Buildings
$###]
[E.g. Computer hardware $###]
4
[A separate column is required to disclose each class of asset under capital lease]
37
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
25. Tangible Capital Assets (continued)
Contributed tangible capital assets
Reference PS3150.42 (c)
Additions to [name of asset category] include the following contributed tangible capital assets:
[name of the item]
[name of the item]
[name of the item]
(in $ thousands)
20X2
20X1
#,###
#,###
#,###
#,###
#,###
#,###
26. Asset Retirement Obligations
Reference: PSAB does not have a specific standard addressing asset retirement obligations. Refer to GAAP
Hierarchy in PS 1150 for other sources of GAAP, which may include international financial reporting
standards or Canadian accounting standards for private enterprises.
[ABC] has recorded an asset retirement obligation for the [description of the cause for the
obligation, e.g. removal of asbestos] from its [name of the asset in question, e.g. XYZ building].
As at [Month day, year], the cash flows required to settle this asset retirement obligation have
been incurred. The unamortized asset retirement obligation is being amortized over the
remaining life of the [name of the asset in question, e.g. XYZ building]. The discount rate of [#%]
is used to estimate the future value of [$#] of the asset retirement obligation over [#] years. It is
management’s opinion that these assumptions are reasonable in the circumstance as at [Month
day, year].
Management, as at [Month day, year], does not foresee any events or circumstances in the
future that would have a significant impact on the estimated value of the asset retirement
obligation.
The asset retirement obligation recorded in these [consolidated] financial statements is as
follows:
(in $ thousands)
Asset retirement
Asset retirement
Current obligation
Amortization Expense
obligation
obligation
Carry amount as at
[current year]
[current year]
Carrying amount as at
[Month day, prior
[Month day, current
year]
year]
$##,###
$##,###
$##,###
$##,###
38
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
26. Asset Retirement Obligations (continued)
[Disclosure is required where estimates cannot be made and where the liability is not
reasonably determinable] The fair value of the liability for [description of the obligation] will be
recognized in the period in which it is incurred if a reasonable estimate of fair value can be
made. As at [Month day, year], the liability is not reasonably determinable.
27. Accumulated Surplus (Deficit)
Reference PS 2120.18 - .23, 2125.20
The accumulated [surplus (deficit)] is made up as follows:
Accumulated [surplus (deficit)]
Other comprehensive income
Funds and reserves
Share capital
(in $ thousands)
20X2
20X1
$ ###,###
$ ###,###
#,###
#,###
#,###
#,###
#
#
$ ###,###
$ ###,###
a. Accumulated [surplus (deficit)]
Accumulated [surplus (deficit)] beginning of year as originally
reported
Adjustments to accumulated [surplus (deficit)]
[description of change in accounting policy]
[description of prior period error corrected]
Accumulated [surplus (deficit)] beginning of year as restated
Annual [surplus (deficit)] for the year as originally reported
Adjustments to annual [surplus (deficit)] for the year
[description of change in accounting policy]
[description of prior period error corrected]
Annual [surplus (deficit)] for the year as restated
Accumulated [surplus (deficit)] – end of year
(in $ thousands)
20X2
20X1
$ ###,###
$ ###,###
###,###
###,###
$ ###,###
###,###
###,###
$ ###,###
##,####
##,####
##,####
$ ###,###
###,###
###,###
##,####
$ ###,###
39
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
27. Accumulated Surplus (Deficit) (continued)
b. Other comprehensive income
Other comprehensive income – beginning of year
Other comprehensive income of business enterprises
Other comprehensive income – end of year
(in $ thousands)
20X2
20X1
$ #,###
$ #,###
#,###
#,###
$ #,###
$ #,###
c. Funds and reserves
Reserve for capital purchase – beginning of year
additional funds set aside during year
Reserve for capital purchase – end of year
(in $ thousands)
20X2
20X1
$ #,###
$ #,###
#,###
#,###
$ #,###
$ #,###
d. Share capital
(in $ thousands)
20X2
20X1
Common shares of [ABC]
authorised [#]
issued [# (20X1: #)]
$#
$#
[Note: PSAB does not specifically address the presentation of share capital. However,
accumulated surplus/deficit is defined as the residual of assets less liabilities and, therefore,
encompasses equity interests.]
28. Designated Assets
Reference PS3100.30
[ABC] has designated assets that are distinct from restricted assets. Unlike restricted assets,
[ABC] can readily change the legislation, by-law or resolution and use the designated assets for
another purpose if the need arises. [Description of asset and intended use.]
40
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
29. Contractual Obligations
Reference PS 3390.08-.09, 3070.60(d)
[ABC] has entered into a number of multiple-year contracts for the delivery of services and the
construction of assets. These contractual obligations will become liabilities in the future when
the terms of the contracts are met. Disclosure relates to the unperformed portion of the
contracts.
Contractual obligations
[Future operating lease
payments]
[2nd contractual obligation]
[3rd contractual obligation]
[contractual obligation of
controlled business
enterprise]
20X3
#,###
20X4
#,###
(in $ thousands)
20X5
20X6
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
#,###
20X7
#,###
Thereafter
#,###
30. Taxation Revenues
Reference PS 3510.45, 1200.127
[Note: organizations that have taxation revenue would disclose, on a comparative basis, the amount of
taxation revenues by major category. As well, the organization would disclose whether or not it had
exceeded its legislated revenue limit, if applicable.]
41
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
31. Expenses by Object
Reference PS 1200.082-.88
The following is a summary of expenses by object:
Salaries and wages
Employee benefits
Staff development
Supplies and services
Interest
Foreign exchange losses
Professional services
Rental expenditures
Fees and contract services
Amortization
Government transfers
Other
(in $ thousands)
20X2
20X1
#,###,###
#,###,###
###,###
###,###
#,###
#,###
#,###
#,###
###
###
###
###
###
###
#,###
#,###
###
###
#,###
#,###
#,###
#,###
#,###
#,###
##,###,###
##,###,###
As of [Month day, year], [ABC]’s actual expense [did not exceed its legislated expense
limit]/[exceeded its legislated expense limit by approximately $#,### (20X1: $#,###).]
32. Valuation Allowances
Reference PS 1200.047 and .086 - .088
Valuation allowances are included in “Other” Expenditures by [function or major program] in
Note [#], and represent the write-down of assets and liabilities in the [consolidated] statement
of financial position.
Accounts receivable
Tangible capital assets
Loans, advances and mortgages receivable
Investments
Other
(in $ thousands)
20X2
20X1
##,###
##,###
##,###
##,###
##,###
##,###
##,###
##,###
##,###
##,###
###,###
###,###
42
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
33. Related Party Transactions
Reference: PSAB does not have a specific standard addressing related party transactions. Refer to other sources of
GAAP per PS 1150 GAAP Hierarchy. Significant government transfers should be disclosed per PS
3410.56.
[ABC] had the following transactions with the government and other government controlled
organizations:
(in $ thousands)
20X2
20X1
##,###
##,###
##,###
##,###
##,###
##,###
Grants from the province
Transfers from [name of entity]
Transfers to [name of entity]
[Note: PSAB has initiated a project to develop a detailed standard to address the presentation and
possibly the measurement of related party transactions. Refer to the accompanying Summary
Comparison of PSAB with the CICA Handbook which summarizes the proposed changes.]
34. Measurement Uncertainty
Reference: PS2130.05 - .08
Program area
[Liabilities]
[Accrued Liabilities]
[Revenues]
[Deferred revenue
recognized]
Actual
amount
reported
$
(in $ thousands)
Measurement
Range
Uncertainty
Minimum Maximum Minimum Maximum
$
$
$
$
[###]
[###]
[###]
[(##)]
[##]
[###]
[###]
[###]
[(##)]
[##]
43
[ABC]
Notes to [consolidated] financial statements
for the year ended March 31, 20x2 - continued
35. Trusts under Administration
Reference PS1300.44
At [Month day, year], the balance of funds held in [description of trust] was [$# (20X1: $#)].
36. Comparative Figures
Reference PS 2120.14
Certain comparative figures as at [month day, prior year], have been restated to conform to
current year’s presentation.
[Note: this covers changes impacting presentation of comparatives; this does not cover off disclosure of
changes related to prior year adjustments.]
37. Subsequent Events
Reference PS2400.15
On [Month day, year], [description of the nature of the event(s) including the financial effect
and/or estimate].
38. Budgeted figures
Reference PS 1200.119-125
Budgeted figures have been provided for comparison purposes and have been derived from the
estimates approved by the [name or title of the approver, e.g. Board of Directors/Trustees].
44
[ABC]
[Consolidated] Financial statements for the year ended March 31, 20x2
Schedule A – Government Business Enterprises Condensed Supplementary
Financial Information
Reference PS3070.60 (a)
[Consolidated] Statement of Financial Position of [name of business enterprise]
(in $ thousands)
20X2
20X1
Month, 20X1
Financial Assets
Cash and cash equivalents
Temporary investments
Accounts receivable
Inventories for resale and other assets held for sale
Due from government/other government organizations
Loans receivable / other loans
Portfolio investments
Total Assets
###
###
###
###
###
###
###
##,###
###
###
###
###
###
###
###
##,###
###
###
###
###
###
###
###
##,###
Liabilities
Accounts payable & accrued liabilities
Employee future benefits
Due to government/other government organizations
Deferred revenue
Long term debt
Obligations under capital leases
Total liabilities
###
###
###
###
###
###
##,###
###
###
###
###
###
###
##,###
###
###
###
###
###
###
##,###
###
###
###
###
###
###
#,###
###
###
###
#,###
###
###
###
#,###
###
###
###
###
###
###
###
#,###
###
#,###
###
#,###
Net financial assets (debt)
Non-financial assets
Tangible capital assets
Inventories held for use
Prepaid expenses
Total non-financial assets
Represented by:
Investment by [ABC]
Unremitted earnings
Other comprehensive income
45
[ABC]
[Consolidated] Financial statements for the year ended March 31, 20x2
Schedule A – Government Business Enterprises Condensed Supplementary
Financial Information (continued)
[Consolidated] statement of operations and changes in unremitted earnings and other
comprehensive income of [name of business enterprise]
(in $ thousands)
20X2
20X1
Revenue
Expense
Net earnings
###
###
###
###
###
###
Contributions paid to [ABC]
###
###
Increase/(decrease) in unremitted earnings
Unremitted earnings – beginning of year
###
###
###
###
Unremitted earnings – end of year
###
###
Other comprehensive income – beginning of year
Other comprehensive income
###
###
###
###
Other comprehensive income – end of year
###
###
46
[ABC]
[Consolidated] Financial statements for the year ended March 31, 20x2
Schedule B - Adjustments to Government Business Enterprise Financial
Statements
Reference PS3070.60 (b)
[name of business enterprise]
As presented in the [audited or unaudited] [consolidated] financial
statements of [business enterprise]
Other comprehensive income
Amount included in [ABC]’s [consolidated] financial statements
[name of business enterprise]
As presented in the [audited or unaudited] [consolidated] financial
statements of [business enterprise]
Other comprehensive income
Amount included in [ABC]’s [consolidated] financial statements
(in $ thousands)
20x2
Net assets
Net income
##,###
##,###
##,###
(###)
##,###
(in $ thousands)
20x1
Net assets
Net income
##,###
##,###
##,###
(###)
##,###
47
[ABC]
[Consolidated] Financial statements for the year ended March 31, 20x2
Schedule C – Segmented Information
Reference PS2700
[ABC]’s reportable segments are [name of segments]. [Description of each segment].
Segmentation is based on [describe the basis for identifying segments]. The following
segmented information is regularly reported to [CFO/SFO/Secretary Treasurer…].
(in $ thousands)
Operating Revenues
[Revenue 1]
[Revenue 2]
Operating Expenses
[Expense 1]
[Expense 2]
Accumulated Surplus/Deficit
[Segment 1]
[Segment 2]
Eliminations
Consolidated
20X2
20X1
20X2
20X1
20X2
20X1
20X2
20X1
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
48