The government continues to assess and monitor the effects of the COVID-19 pandemic on its financial position, including related estimates and assumptions used in the preparation of its financial statements. Remediation has been completed on 3 sites during the year (nil in 2020). For these loans receivable, the amount expected to be repaid from future appropriations is recorded to reduce the carrying value of the loan to an amount that approximates the amount to be recovered from sources outside the reporting entity of the government. These include various Canada Port Authorities. The second was for the period from March23,2021 to March31,2021, inclusive, and was pursuant to the standing extraordinary borrowing authority under the FAA. Some corporations may be required to have their external financial statements audited. Excise tax revenue is recognized when a taxpayer sells goods taxable under the, Excise duties revenue is recognized when the taxpayer manufactures goods taxable under the. Stay informed as we add new reports & testimonies. The nature of government activities results in large multi-year contracts and agreements, including international treaties, protocols and agreements of various size and importance. The following table presents the government's recorded loans, investments and advances in significant enterprise Crown corporations and other government business enterprises: Government's recorded loans, investments and advances in significant enterprise Crown corporations and other government business enterprises (in millions of dollars). Assumptions in the methodologies applied to estimate the individual income tax revenues, GST revenues and allowance for doubtful accounts were refined to take into consideration the current economic climate. Short-term deposits, marketable securities and special drawing rights held in the foreign exchange accounts are recorded at cost. The unrealized gains and losses on financial instruments reflect changes in the fair value of financial assets measured at fair value through other comprehensive income, or derivative instruments used in hedging activities and are excluded from the calculation of profit or loss until realized. Pension and other future benefit assets include investments held by the Public Sector Pension Investment Board (PSPIB), which are valued at market-related value. In the SLTFP, notable adjustments to current law are: 1) projected spending, receipts, and borrowing levels assume raising or suspending the current statutory limit on federal debt; 2) continued discretionary appropriations are assumed throughout the projections period; 3) scheduled Social Security and Medicare Part A benefit payments are assume. The government sponsors a number of defined benefit pension plans covering substantially all the employees of the federal public service, as well as certain Public Service corporations as defined in the Public Service Superannuation Act, territorial governments, members of the Canadian Forces (including the Reserve Force), members of the Royal Canadian Mounted Police, federally appointed judges and Members of Parliament, including Senators. Both GAAP and IFRS have some specific guidelines for companies who choose to report consolidated financial statements with subsidiaries. Some of these loans will be repaid through future appropriations of the government under various subsidy programs which provide funds directly related to the repayment of the loan. An asset retirement obligation is recognized when all of the following criteria are satisfied: there is an agreement, contract, legislation, or a constructive or equitable obligation for the government to incur retirement costs for a tangible capital asset; the past event or transaction giving rise to the retirement liability has occurred; it is expected that the government will give up future economic benefits to retire the asset; and, a reasonable estimate of the amount can be made. General Property, Plant, and Equipment, Net -, Note 8. Published: Mar 25, 2021. The actuarial assumptions underlying the valuations for funding purposes are based on the actuary's best estimates. Cash consists of public moneys on deposit and cash in transit less outstanding cheques and warrants. Once the pandemic recedes and the economy substantially recovers, Congress and the administration should quickly pivot to developing an approach to place the federal government on a sustainable long-term fiscal path. Certain comparative figures have been reclassified to conform to the current year's presentation. Detailed information on the enterprise Crown corporations is included in Section9 (unaudited) of this volume. the accrual of tax revenues and the related amounts receivable, other receivables and payables, and the allowance for doubtful accounts (Note 4 and Note 13), the provision for contingent liabilities (Note 7), environmental liabilities and asset retirement obligations (Note 8), public sector pensions and other employee and veteran future benefits (Note 10), enterprise Crown corporations and other government business enterprises (Note 15), other loans, investments and advances (Note 16), the expected useful life of tangible capital assets (Note 17), taxes and other accounts receivable (Note 13), tangible capital assets and inventories (Note 17), contractual obligations and contractual rights (Note 19), Income tax revenue is recognized when the taxpayer has earned the income subject to the tax. The consolidated financial statements include the legislative and judicial branches. Goods and service tax revenues are reduced by the additional GST credit payments in response to the impact of the COVID-19 pandemic totalling $5,425million. You are already subscribed. Consolidated financial statements report the aggregate reporting results of separate legal entities. For the Members of Parliament retiring allowance plan, basic allowances accrue at a rate of 3% per year of pensionable service multiplied by the average of the best five consecutive years of sessional indemnity and/or pensionable earnings up to a maximum of 75% of the plan member's average sessional indemnity and/or pensionable earnings as applicable. The discount rates used to measure the significant classes of pensions and other employee future benefits sponsored by the consolidated Crown corporations and other entities are based on a variety of methodologies. Consolidated financial statementsSection 2: Consolidated financial Therefore, even if current policy is continued, there will be differences between the estimates in the sustainability financial statements and actual results, and those differences may be material. As of March31,2021, $98million ($7million in 2020) were returned. The estimated future cash flows are adjusted for inflation using the consensus forecasts and historical and target inflation rates set by the Bank of Canada. For enterprise Crown corporations and other government business enterprises recorded under the modified equity method, certain unrealized gains and losses on financial instruments and certain actuarial gains and losses related to pensions and other employee future benefits are recorded in other comprehensive loss or income in accordance with International Financial Reporting Standards (IFRS). (The sales and the related purchases made between the subsidiaries and between the subsidiaries and the parent corporation are not included. When Parliament is in session but not sitting or is dissolved for the purposes of general election, section30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the government to withdraw funds from the Consolidated Revenue Fund. The government has four major types of revenues: tax revenues, employment insurance premiums, proceeds from the pollution pricing framework and other revenues. The total obligation related to capital leases as at March31,2021, is $2,708million ($2,913million in 2020). Public debt charges (in millions of dollars). See Notes to Consolidated Financial Statements. Collateral pledged by counterparties to the government may be liquidated in the event of default to mitigate credit losses. The government does not have a significant concentration of credit risk with any individual institution and does not anticipate any counterparty credit loss with respect to its swap and foreign exchange forward agreements. Enterprise Crown corporations are government business enterprises able to raise substantial portions of their revenues through commercial business activity and are therefore considered self-sustaining. The accrued benefit obligations in respect of public sector pensions and other employee and veteran future benefits are presented net of pension assets, unrecognized net actuarial gains or losses and valuation allowance, as well as contributions and benefits paid by some of the consolidated Crown corporations and other entities after their measurement date of December31 up to March31, in the Consolidated Statement of Financial Position. Overpayments are recorded as a reduction of expense in the year when the existence and amount of the overpayment has been determined. For jurisdictions that voluntarily adopt the federal carbon pollution pricing framework, directly to the governments of those jurisdictions. Cash equivalents consist mainly of term deposits usually not exceeding 31days. The table below illustrates the possible impact of a 1% change in the principal actuarial assumptions. The market-related value of investments is adjusted, if necessary, to ensure that it does not fall outside a limit of plus or minus 10% of the market value of investments at year end; any amount outside this limit is recorded immediately through actuarial gains and losses. For unfunded pension benefits, separate invested funds are not maintained. Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient. 4) many mandatory programs with expiration dates prior to the end of the 75-year projection period are assumed to be reauthorized. Details can be found in Section7 (unaudited) of this volume. GAOs report on the U.S. governments consolidated financial statements for fiscal years 2020 and 2019 discusses progress that has been made but also underscores that much work remains to improve federal financial management. In response to the COVID-19 pandemic, the COVID-19 support measures were implemented through both voted and statutory expenditures. Amounts reported as capital include a purchase of common shares of $7,503million ($1,406million in 2020) from Business Development Bank of Canada, $10,967million (nil in 2020) from Export Development Canada and nil ($500million in 2020) from Farm Credit Canada. Yep, it sure is, which is what makes reading consolidated financial statements so difficult! Detailed information on contractual obligations is provided in Section11 (unaudited) of this volume. Detailed information on tangible capital assets is provided in Section10 (unaudited) of this volume. Remediation of contaminated sites (in millions of dollars). Details about the source and disposition of authorities (unaudited) and the details of ministerial expenditures are provided in VolumeII of the Public Accounts of Canada. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." Both GAAP and IFRS have some specific guidelines for entities who choose to report consolidated financial statements with subsidiaries. In its consolidated financial statements it breaks out its businesses by Insurance and Other, and then Railroad, Utilities, and Energy. Authority to borrow is granted through section3 of the Borrowing Authority Act (BAA) up to the maximum amount set out under section4 of that Act. GAAP and IFRS include provisions that help to create the framework for consolidated subsidiary financial statement reporting. These amounts are excluded from the consolidated financial statements of the Government of Canada. The remaining 515 suspect sites (475 in 2020) are currently in the assessment stage and a reasonable estimate cannot yet be determined. Certain loans are non-interest bearing and others bear interest at rates varying from 0.1%to10.3%. Inventories are valued at cost. The government had $6,596million outstanding at year-end under that authority. The assumptions used in the actuarial valuations for accounting purposes are based on the government's or the consolidated Crown corporations and other entities management's best estimates of expected long-term experience and short-term forecasts, as well as the majority of the demographic assumptions underlying the most recent actuarial valuations for funding purposes, as applicable. enclosure executive office of the president office of management and budget washington, d.c. 20503 june 28, 2019 circular a-136 revised to the heads of executive departments, agencies, and Loans, investments and advances to international organizations include subscriptions to the share capital of international banks totalling $15,976million ($15,602million in 2020) as well as loans and advances to associations and other international organizations totalling $10,180million ($9,323million in 2020). metals, petroleum hydrocarbons, polyaromatic hydrocarbons, BTEX and other organic contaminants. The allowance is reviewed on an ongoing basis and changes in the allowance are recorded as other expenses in the year they become known. In commenting on a draft of this report, Department of the Treasury (Treasury) and Office of Management and Budget (OMB) officials provided technical comments that GAO incorporated as appropriate. As of March31,2021, $20,059million of federal taxes were under objection ($18,273million for 2020). As a consequence of the Committee's broad subject matter jurisdiction, the Finance Committee has sole or shared jurisdiction over the activities of numerous agencies and offices. If the asset is fully amortized, its retirement costs are expensed. The difference is due to various factors. As of March31,2021, there were $4,219million of fuel charge proceeds recorded ($2,655million in 2020). Federal Government amounts that result from transactions with Non-Federal entities. PDF NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - University of Michigan
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