Public Sector Accounting Standards s1

Public Sector Accounting Standards Model Financial Statements for Government Organizations

[Consolidated] financial statements of [ABC] as at [Month day, year] Contents 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.

3 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-for- profit 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.

4 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] [Name] [Title] [Title]

[Month Day, Year]

5 Independent Auditor’s Report

(the report of the auditor would go here)

6 [ABC] [Consolidated] Statement of Financial Position As at March 31, 20x2 [In thousands of dollars] March March 31, April 1, 1 Reference Note 31, 20X2 20X1 20X0 (Restated - Note 2) Financial assets 1200.046 (a) Cash and cash equivalents 6 9,133 9,418 9,054 1200.046 (b) Temporary investments 7 7,200 5,582 6,589 1200.046 (c) Accounts receivable 8 2,008 3,401 2,389 1200.046 (d) Inventories for resale and other assets held for sale 25 30 27 1200.046 (e) Due from government/other government organizations 9 345 420 385 1200.046 (f) Loans receivable 10 542 517 505 1200.046 (g) Portfolio investments 11 7,253 3,580 4,216 1200.046 (h) Investments in government business enterprises 12 1,456 1,568 1,751 1200.046 (i) Investments in government business partnerships 13 1,247 1,344 1,248 3230.03 (b) Sinking fund investments 14 745 712 769 29,954 26,572 26,933 Liabilities 1200.041 (a) Accounts payable & accrued liabilities 16 6,858 6,319 6,246 1200.041(b) Employee future benefits 17 776 554 664 1200.041 (e) Due to government/other government organizations 18 4,396 4,387 4,352 1200.041 (c) Deferred revenue 19 68,979 70,263 73,399 1200.041 (d) Long term debt 20 10,000 8,000 8,500 PSG-2.24 (b) Obligations under capital leases 22 203 192 180 91,212 89,715 93,341 Net financial assets (debt) (61,258) (63,143) (66,408)

Non-financial assets 1200.053 (a) Tangible capital assets 25 54,850 56,877 59,940 1200.053 (b) Inventories held for use 785 811 2,178 1200.053 (c) Prepaid expenses 566 259 2,178 56,201 57,947 64,296

Accumulated surplus (deficit) 27 (5,057) (5,196) (2,112)

1200.068 Contingent assets 15 3300.15 Contingent liabilities 23 3100.30 Designated assets 28 2130.06 Measurement uncertainty 34

The accompanying notes and supplementary schedules are an integral part of these [consolidated] financial statements.

Signature Signature Name, Title Name, Title

1 This is the opening statement of financial position at the date of transition (PS1200.04) 7 [ABC] [Consolidated] Statement of Operations For the Year ended March 31, 20x2 [In thousands of dollars]

Budget Reference Note (Note 38) 20X2 20X1 1200.074(a) & (Restated - 077-.081 Revenues Note 2) Grants 47,000 46,832 45,031 Operating 2,500 1,849 1,585 Fees 33,000 36,497 32,676 3040.27 Income from portfolio investments 2,500 2,675 2,750 Other investment income 3,000 3,211 3,236 3070.58 Business enterprises 1,500 2,125 2,542 Other - - - 89,500 93,209 87,820 1200.074(b) & 082 & .084-.085 Expenses 31 Program delivery (program 1) 47,000 47,963 47,632 Program delivery (program 2) 28,000 28,346 27,615 Program delivery (program 3) 10,400 11,105 10,371 Administration 5,027 5,125 5,245 Interest 20 500 531 510 90,927 93,070 91,373 Annual surplus (deficit) (1,427) 139 (3,553)

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)

8 [ABC] [Consolidated] Statement of Change in Net Financial Assets (Debt) For the Year ended March 31, 20x2 [In thousands of dollars]

Budget Reference (Note 38) 20X2 20X1 (Restated - Note 2) 1200.091 Annual surplus (deficit) (1,427) 139 (3,553)

1200.092 (Acquisition)/disposal of tangible capital assets (3,000) (2,231) (826) 1200.093a Amortization of tangible capital assets 4,000 4,258 3,889 1200.093b (Gain)/loss on sale of tangible capital assets - - 3,713 1200.093c Write-downs on tangible capital assets - - - 1200.093d Capitalized interest - - - 1200.093e Capitalized overhead - - - 1,000 2,027 6,776

1200.093g Acquisition of supplies inventories 1200.093g Acquisition of prepaid expense - (307) 97 1200.093f Consumption of supplies inventories - 26 (55) 1200.093f Use of prepaid expense - - - - (281) 42 Effect of self-supported subsidiary other comprehensive 1200.093h income - - -

(Increase) decrease in net financial assets (debt) (427) 1,885 3,265 1200.094 Net financial assets (debt) at beginning of year (64,000) (63,143) (66,408) 1200.094 Net financial assets (debt) at end of year (64,427) (61,258) (63,143)

9 [ABC] [Consolidated] Statement of Cash Flows For the Year ended March 31, 20x2 [In thousands of dollars] Reference 20X2 20X1 (Restated - 1200.100 Operating transactions Note 2) Cash received from: 1200.104f Transfers 47,000 45,000 1200.104c Operating 1,822 1,478 1200.104b Fees, permits, licenses and fines 37,709 32,676 1200.104j Interest 2,651 3,296 1200.104d Business enterprises 2,145 2,542 1200.104e Dividends - - Other 2,261 2,599 93,588 87,591 Cash paid for: 1200.104i Salaries and benefits 47,685 47,540 1200.104h Material supplies 8,035 7,856 1200.104c Services 2,473 2,432 1200.104j Interest 264 510 1200.104g Rent - - 1200.104g General administration 26,887 26,458 Other 5,941 5,538 1200.104f Grants and other transfers - - 91,285 90,334 Cash provided by (applied to) operating transactions 2,303 (2,743)

1200.100 Capital transactions 1200.108b Proceeds on sale of tangible capital assets - - 1200.108a Cash used to acquire tangible capital assets (2,231) (826) Cash provided by (applied to) capital transactions (2,231) (826)

1200.100 Investing transactions 1200.109 Proceeds from disposals and redemptions of portfolio investments 2,675 2,750 1200.109 Repayment of loans and advances 50 (47) 1200.109 Temporary investments (1,618) 1,007 1200.109 Portfolio investments (3,673) 636 1200.109 Loans and advances - - 1200.109 Investments in government business enterprises 209 87 1200.109 Cash provided by (applied to) investing transactions (2,357) 4,433

1200.100 Financing transactions 1200.110 Debt issues 2,000 (500) 1200.110 Debt retirement - - Cash provided by (applied to) financing transactions (2,000) (500)

(Decrease ) / Increase in cash and cash equivalents (285) 364 1200.099 Cash and cash equivalents at beginning of year 9,418 9,054 1200.099 Cash and cash equivalents at end of year 9,133 9,418

10 [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) Previously Stated2 Adjustment Restated 20x0 20x0 20x0 [Temporary #,### (#,###) #,### Investments] [Portfolio #,### #,### #,### investments] [Deferred revenue] #,### (#,###) #,### [Account 4] #,### #,### #,### [Account 5] #,### (#,###) #,### 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];

2 This date is that of the opening statement of financial position at the date of transition (PS1200.04) 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]. 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 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.] 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.] 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. 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 ## years Building ## years Furniture and equipment ## years Computer hardware and ## years software Leasehold improvements ## 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 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. 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 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. 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) Previously Stated Adjustment Restated 20x1 20x1 20x1 [Account 1] #,### (#,###) #,### [Account 2] #,### #,### #,###

[Note: These are changes in accounting policies that are distinct from the first-time adoption of PSAB, which is disclosed in Note 2.] 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 (in $ thousands) 20X2 20X1 Restricted cash #,### #,### Unrestricted cash, demand deposits and guaranteed #,### #,### investment certificates #,### #,### Restricted cash is [description, e.g. endowment funds].

7. Temporary Investments Reference PS 3030.03 - .05 (in $ thousands) 20X2 20X1 (Restated – note 2) Marketable securities, at cost #,### #,### Less provision for decline in value (#,###) (#,###) #,### #,###

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.]

8. Accounts Receivable Reference PS 1200.047 (in $ thousands) 20X2 20X1 Revenues receivable #,### #,### Accrued interest #,### #,### Less provision for doubtful accounts (#,###) (#,###) #,### #,###

9. Due from Government and Other Government Organizations Reference PS 1200.047 (in $ thousands) 20X2 20X1 Federal government #,### #,### Provincial government #,### #,### Other government organizations #,### #,### #,### #,###

10. Loans Receivable Reference PS 3050.056 (in $ thousands) 20X2 20X1 [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 (#,###) (#,###) #,### #,###

[Describe security held for each class of loans].

[For loans denominated in foreign currencies, also disclose the currency, amount, and Canadian dollar equivalent]. 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.] 12. Investments in Government Business Enterprises Reference PS3070.60 (a) – (f)

[ABC] owns [#%] of [name of business enterprise]

Equity in [name of enterprise] (in $ thousands) 20x2 20x1 Investment in [Name of enterprise] ### ### Unremitted earnings ##,### ##,### Other comprehensive income # # ###,### ###,###

Change in equity in [name of business enterprise] (in $ thousands) 20x2 20x1 Equity at beginning of year ###,### ###,### Additional investment ### Contributions paid (###) Net earnings/(loss) ### ##,### Other comprehensive income/(loss) (#) # Equity at end of year ###,### ###,###

[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. 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 (in $ thousands) 20X2 20X1 Financial assets #,### #,### Liabilities #,### #,### Net Liabilities (#,###) (#,###) Non-financial assets #,### #,### Accumulated surplus (deficit) #,### #,###

[Consolidated] Statement of Operations (in $ thousands) 20X2 20X1 Revenue #,### #,### Expenses (#,###) (#,###) Surplus (deficit) for the year #,### #,### Accumulated surplus (deficit) – beginning of year #,### #,### Accumulated surplus (deficit) – end of year #,### #,### 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 (in $ thousands) 20X2 20X1 Accounts payables and accrued liabilities #,### #,### Salaries and benefits payable #,### #,### Accrued vacation pay #,### #,### Other #,### #,### #,### #,### 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 (in $ thousands) 20X2 20X1 Retirement Other Total Total Benefits Employee Employee Employee Benefits Benefits Benefits Accrued employee future benefit obligations, end of year ###,### ##,### ###,### ###,### Unamortized actuarial loss, end of year (##,###) - (##,###) (##,###) Employee future benefits liability, end of year $ ###,### $ ##,### $ ###,### $ ###,### b. Retirement and other employee future benefit expenses (in $ thousands) 20X2 20X1 Retirement Other Total Total Benefits Employee Employee Employee Benefits Benefits Benefits Current year benefit cost ##,### #,### ##,### ##,###, Interest on accrued benefit obligation ##,### #,### ##,### ##,### Recognized actuarial gains #,### - #,### #,### Employee future benefit expenses $ ###,### $ #,### $ ###,### $ ###,### 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 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:

20X2 20X1 Inflation #.##% #.##% Wages and salary escalation #.##% #.##% Interest (discount rate on accrued benefit obligations) #.##% #.##% 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. 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]:

(in $ thousands) Balance at Receipts Transferred Balance at beginning of during year to revenue end of year year [Restated – note2] [Deferred revenue type 1] ###,### ###,### ###,### ###,### [Deferred revenue type 2] ###,### ###,### ###,### ###,### [Deferred revenue type 3] ###,### ###,### ###,### ###,### ###,### ###,### ###,### ###,###

[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.] 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 $##,### 20. Long-Term Debt (continued)

(in $ thousands) 20X 20X1 2 Interest expense for the year on outstanding debt ### ###

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 $ #,### 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.

(in $ thousands) Derivative [Long Term Debt] Other Financial Liabilities Year of Currency Swaps amounts Currency Swaps amounts Total Maturity to be exchanged to be exchanged (Receive) Pay (Receive) Pay $ $ $ $ $ 20X3 #,### #,### #,### #,### #,### 20X4 #,### #,### #,### #,### #,### 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.

[Currency 1] 20X3 [Currency 2] [Currency 3] $ #,### [Currency 1] 20X4 [Currency 3] #,### 20X5 [Currency 1] #,### [Currency 1] 20X6 [Currency 3] #,### 20X7 [Currency 1] #,### 20x8 – 20xx #,### $ ##,### 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.

(in $ thousands) Year ended [Month day] Surplus (deficit) for the year $ 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 ##,###

[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. 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: (in $ thousands) 20X2 20X1 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 $ ### $ ###

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.]

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]. [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) Compu ter Buildings hardwa Land and land Furniture and Leasehold under 20X2 Buildings re improvements equipment improvements capital Total and 3 softwar lease e $ $ $ $ $ $ $ Cost Opening Balance #,###,# ##,###,### #,###,### #,##,### ## ###,### #,### ###,###,### Additions ### ###,### ###,### ###,### ###,### ### ##,###,### Disposals (#) (#,###,###) - - - - (#,###,###) Write-downs ------Closing Balance #,###,# ##,###,### #,###,### #,###,### ## ###,### #,### ###,###,###

Accumulated Amortization Opening Balance (###) ##,### ###,### ###,### ###,### #,### #,###,### Amortization (##) ##,### ###,### ###,### ###,### ### #,###,### Disposals # (#,###,###) - - - (#,###,###) Write-downs # (#,###,###) - - - (#,###,###) Closing Balance (###) ###,### ###,### ###,### ###,### #,### ##,###,### Net book value #,###,# ##,###,### ###,### #,##,### ## ###,### #,### ###,###,###

Interest: Additions to [buildings] includes capitalized interest of [$#,###].

Cost at [March 31, 20X2] includes work in progress as follows: [E.g. Buildings $###]

3 [A separate column is required to disclose each class of asset under capital lease]

38 [ABC] Notes to [consolidated] financial statements for the year ended March 31, 20x2 - continued [E.g. Computer hardware $###]

39 [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 Buildings Land and land Furniture and Leasehold 20X1 Buildings hardware under capital improvements equipment improvements Total and software lease4 $ $ $ $ $ $ $ Cost Opening Balance ##,###,### #,###,### #,##,### #,###,### ###,### #,### ###,###,### Additions ### ###,### ###,### ###,### ###,### ### ##,###,### Disposals (#) (#,###,###) - - - - (#,###,###) Write-downs ------Closing Balance ##,###,### #,###,### #,###,### #,###,### ###,### #,### ###,###,###

Accumulated Amortization Opening Balance (###) ##,### ###,### ###,### ###,### #,### #,###,### Amortization (##) ##,### ###,### ###,### ###,### ### #,###,### Disposals # (#,###,###) - - - (#,###,###) Write-downs # (#,###,###) - - - (#,###,###) Closing Balance (###) ###,### ###,### ###,### ###,### #,### ##,###,### Net book value ##,###,### ###,### #,##,### #,###,### ###,### #,### ###,###,### . 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]

40 [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:

(in $ thousands) 20X2 20X1 [name of the item] #,### #,### [name of the item] #,### #,### [name of the item] #,### #,###

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] $##,### $##,### $##,### $##,###

26. Asset Retirement Obligations (continued)

41 [ABC] Notes to [consolidated] financial statements for the year ended March 31, 20x2 - 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:

(in $ thousands) 20X2 20X1 Accumulated [surplus (deficit)] $ ###,### $ ###,### Other comprehensive income #,### #,### Funds and reserves #,### #,### Share capital # # $ ###,### $ ###,###

a. Accumulated [surplus (deficit)] (in $ thousands) 20X2 20X1 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 $ ###,### $ ###,###

42 [ABC] Notes to [consolidated] financial statements for the year ended March 31, 20x2 - continued 27. Accumulated Surplus (Deficit) (continued)

b. Other comprehensive income (in $ thousands) 20X2 20X1 Other comprehensive income – beginning of year $ #,### $ #,### Other comprehensive income of business enterprises #,### #,### Other comprehensive income – end of year $ #,### $ #,###

c. Funds and reserves (in $ thousands) 20X2 20X1 Reserve for capital purchase – beginning of year $ #,### $ #,### additional funds set aside during year #,### #,### Reserve for capital purchase – end of year $ #,### $ #,###

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.]

43 [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.

(in $ thousands) Contractual obligations 20X3 20X4 20X5 20X6 20X7 Thereafter [Future operating lease #,### #,### #,### #,### #,### #,### payments] [2nd contractual obligation] #,### #,### #,### #,### #,### #,### [3rd contractual obligation] #,### #,### #,### #,### #,### #,### [contractual obligation of #,### #,### #,### #,### #,### #,### controlled business enterprise] #,### #,### #,### #,### #,### #,###

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.]

44 [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:

(in $ thousands) 20X2 20X1 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 #,### #,### ##,###,### ##,###,###

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.

(in $ thousands) 20X2 20X1 Accounts receivable ##,### ##,### Tangible capital assets ##,### ##,### Loans, advances and mortgages receivable ##,### ##,### Investments ##,### ##,### Other ##,### ##,### ###,### ###,###

33. Related Party Transactions

45 [ABC] Notes to [consolidated] financial statements for the year ended March 31, 20x2 - continued 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

(in $ thousands) Measurement Range Uncertainty Program area Actual Minimum Maximum Minimum Maximum amount reported $ $ $ $ $ [Liabilities] [Accrued Liabilities] [###] [###] [###] [(##)] [##] [Revenues] [Deferred revenue [###] [###] [###] [(##)] [##] recognized]

46 [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].

47 [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]

20X2 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 ### #,###

48 [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]

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

49 [ABC] [Consolidated] Financial statements for the year ended March 31, 20x2 Schedule B - Adjustments to Government Business Enterprise Financial Statements Reference PS3070.60 (b)

(in $ thousands) 20x2 [name of business enterprise] Net assets Net income

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) 20x1 [name of business enterprise] Net assets Net income

As presented in the [audited or unaudited] [consolidated] financial ##,### ##,### statements of [business enterprise] Other comprehensive income (###) Amount included in [ABC]’s [consolidated] financial statements ##,### ##,###

50 [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) [Segment 1] [Segment 2] Eliminations Consolidated 20X2 20X1 20X2 20X1 20X2 20X1 20X2 20X1 Operating Revenues [Revenue 1] ### ### ### ### ### ### ### ### [Revenue 2] ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### Operating Expenses [Expense 1] ### ### ### ### ### ### ### ### [Expense 2] ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### ### Accumulated Surplus/Deficit ### ### ### ### ### ### ### ###