2009-10 Financial Statement
EFIS Forms
September 2010
Ministry of Education
Training Sessions
Part F – Notes to the Financial Statement
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Note 1: Significant accounting policies - Updated

Note 2: Change in accounting policy - Updated
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Note 4: Accounts receivable – Government of Ontario - New
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Note 12: Tangible Capital Assets – Updated
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Note 13: Accumulated Surplus - New
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Note 17: Budget data - Updated
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Note 18: Partnership in Transportation Consortium - New
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Note 19: Accounting for Contributions Used for Capital - New
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Overview
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Due to some significant accounting changes, the Ministry proposes
changes to notes to the financial statements. Major changes
include:
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Moved funds and reserves to accumulated surplus as at September 1, 2009
as per PS-1200.
Implemented tangible capital assets (TCA) as at September 1, 2009 as per
PS-3150.
Included the impact of the capital wrap-up as at August 31, 2010.
A draft notes was shared with boards. This slide deck is based on
the draft notes.
Feedback is welcome, and will be incorporated in the final version,
to be available after the training sessions.
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Note 1 - Significant Accounting Policies
 Investments are broken down into temporary and
long-term investments
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Temporary investment - maturities between 90 days and one year
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Long-term investments - maturities more than one year
 Tangible Capital Assets (TCA)
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Three notes (note 1, note 2 and note 12) disclose TCA
Note 1 discloses general TCA accounting policy – every year
Note 2 discloses the impact of first time TCA reporting – only for this year
Note 12 discloses actual TCA information – every year
Accounting policy disclosed:
a.
b.
c.
d.
e.
f.
Asset class
Capitalization – what is capitalized
Amortization – straight line over the useful life or lease term
Land held for sale
Building permanently removed from service
Work of arts and historical assets
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Note 2 - Change in Accounting Policy

First year full implementation of:
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Section 1200 Financial Statement Presentation
Section 3150 Tangible Capital Assets

Focus on implementation of section 3150
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The approach to establish the opening balance
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a)
b)
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Historical cost – if available
If not available then
Building/Land – by the Ministry through BVC
Other classes – estimated by the boards
The impact on the statement of financial position and statement of
financial activities

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Restatement of Accumulated Surplus – Add the Net Book Value of TCA
Restatement of Annual Surplus/Deficit – Add capital expenditures
previously expensed, gain on disposal that is not subject to restriction,
less amortization expense, loss on disposal
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Note 4 – Accounts Receivable – Government of Ontario

New note this year

The province changed the funding policy for capital

Variable funding is replaced with a one-time debt support grant and
long-term accounts receivable

Cash payment will be over the remaining term of the existing capital
debt instruments.

Disclose the total account receivable amount as at August 31, 2010
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Note 12 – Tangible Capital Assets

Opening balances, in year change (additions, amortization,
adjustment and disposals) and ending balances are disclosed

Also discloses:
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Amounts of assets under construction
Amounts of write down
Amounts of asset permanently removed from service
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Note 13 – Accumulated Surplus
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New note this year

Disclose components of accumulated surplus
 Invested in tangible capital assets
 Restricted for future use by board motion
 Other
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Boards may also disclose detail of the amount restricted by board
motion
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Sick leave
Employee benefit
Retirement Gratuities
Amounts restricted for future use on capital expenditures
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Note 18 – Budget data

TCA was not included in the original budget

Statement of operation is restated in order to reflect the same basis
of accounting in budget and actual
a. Where amounts were budgeted, i.e. the pupil accommodation
expenditure and capital expenditure for land and building, use the
budgeted amount
b. Where the amount were not budgeted, use actual amount

Statement of Change in Net Debt is not restated because this is a
new statement and boards did not prepare it in the budget
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Note 19 – Partnership in Transportation Consortium
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New note this year
Two kinds of transportation consortium
- Full Partner in a Separate Legal Entity
- Full Partner in a Consortium Agreement
Similarities:
Proportionate consolidation approach
Disclose asset, liabilities, accumulated surplus/deficit, revenues and
expenses, annual surplus/deficit
Differences:
Full Partner in a Separate Legal Entity
a. Pro-rata share of assets, liabilities, revenues and expenses of the
consortium
b. Inter-organizational transactions and balances have been eliminated.
Partner in a Consortium Agreement
a. Assets that it controls,
b. Liabilities that it has incurred,
c. Pro-rata share of revenues and expenses.
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Note 20 – Accounting for Contributions Used for Capital
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New note this year
To disclose the forthcoming government direction on accounting treatment
on capital contribution starting 2010-11
School boards are required to adopt the policy to recognize government
transfers and external contributions used in the acquisition of TCA over
useful life of the asset
Purpose of the policy
Ensure consistency with current practice of senior governments in Canada
and other major broader public-sector organizations (hospitals, colleges and
universities),
Ensure that school board operating surpluses or deficits are not distorted by
capital grant revenues.
PSAB Compliance
Not currently a recognized option by the Public Sector Accounting
Standards Board (PSAB)
Do not need to be implemented in 2009-10 financial statements.
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Questions?
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Further Information
1)
Finance Officer
As a first point of contact, please direct queries to your finance officer, who
will coordinate with the Reporting Entity Team to resolve your query.
2)
Reporting Entity Team
Andrew Yang
Project Manager
416-325-4212
Andrew.Yang@ontario.ca
Elizabeth Sulkovsky
Senior Business & Policy Analyst
416-325-8527
Elizabeth.Sulkovsky@ontario.ca
Soundari Vigneshwaran
Business Analyst
416-326-9168
Soundari.Vigneshwaran@ontario.ca
Patrick Pelletier
Business Analyst
416-325-2058
Patrick.Pelletier@ontario.ca
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