FIS INFO
September 2001
Glossary
The following 'user friendly' definitions are based on more formal 'accountant' definitions found
in the Glossary on the Treasury Board Secretariat (TBS) Website at http://www.tbs-sct.gc.ca/fin/sigs/fis-sif/.
You will find, in parentheses, the equivalent French expressions.
Accountability (responsabilisation)
Responsibility for performance, including
related costs and expectations.
Accrual Accounting (comptabilité d'exercice)
An accounting methodology whereby revenue
is recognized when it is earned and expenses
are recorded when they are incurred, without
regard to the timing of cash receipts or
payments.
Amortization (amortissement)
Commonly referred to as depreciation.
Amortization is the allocation of the historical
cost of a capital asset over its useful life.
Asset (actif)
Items of value owned by the Government
having three essential characteristics:
-
they provide a future benefit
-
the Government can control access to
the benefit; and,
-
the transaction (or event) giving rise to
the Government's right to (or control of)
the benefit has already occurred.
Capital Asset (immobilisation)
Capital Assets are identifiable assets
(property, plant and equipment) that meet
all of the following criteria:
-
are held for use in the production or
supply of goods and services, or for
rental to others, or for administrative
purposes, or for the development,
construction, maintenance or repair
of other capital assets;
-
have been acquired, constructed or
developed with the intention of being
used on a continuing basis; and,
-
are not intended for sale in the
ordinary course of business.
Expense vs Cost (charge vs coût)
Expense:
The cost of resources
consumed in departmental operations
for a specified period.
Cost:
The dollar measure of resources
used or foregone to achieve a
particular objective.
Financial Statement (états financiers)
A report containing financial or accounting
information pertaining to a department or
agency presented in an organized manner.
Examples include a Statement of Financial
Position (Balance Sheet), Statement of
Operations, Statement of Management
Responsibility, Statement of Cash Flow,
as well as schedules and notes.
Statement of Financial Position (état de la situation financière)
The Statement of Financial Position (Balance
Sheet) reports on the departmental assets and
liabilities at the end of the accounting period.
Statement of Operations (état des résultats de fonctionnement)
The Statement of Operations reports the
revenues earned and the expenses incurred
for a specific accounting period. The
difference between the revenues and
expenses is the net financial result of
operations for that period.
Statement of Management Responsibility (énoncé de la responsabilité de
la direction)
The Statement of Management Responsibility
is signed by the Deputy Head and the Senior
Financial Officer acknowledging their
responsibility for the financial statements.
Statement of Cash Flow (état du flux de trésorerie)
The Statement of Cash Flow will show
departmental cash flows. The statement
focuses on the sources and uses of cash.
Generally Accepted Accounting Principles - GAAP (Principes comptables
généralement acceptés - PCGR)
The application of rules, methods,
procedures, general principles and
standards in accounting for transactions.
Government accounting policies are based
on the recommendations of the Public
Sector Accounting Board.
Liability (passif)
A financial obligation or debt (contract,
agreement or legislation) as a result of
a transaction that has occurred on or
before the accounting date.
Materiality (importance relative)
A principle used in determining the relative
importance of an item, an event, or a
decision. For example: an omission,
misstatement or error in a department's
financial statements is material if there is
a reasonable expectation that knowledge
of it would influence the decisions of a user
(client or manager).
Prepaid Expense (charge payée d'avance)
A service that is paid for before the benefit
is received. For example: prepayment of a
contract for maintenance services for a
12-month period. The maintenance fees
are considered prepaid for the portion of
services that have not yet been rendered.
Revenues (revenus)
Amounts earned in the course of operating
activities, regardless of when receipt
takes place.
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