The purpose of this note is to
provide you with revised Treasury Board Accounting Standard (TBAS) 1.2
Departmental and Agency Financial Statements, which replaces the version issued
in 2001, and to advise you of the reporting requirements for this year-end.
The 2005-2006 departmental financial statements are to be prepared in
accordance TBAS 1.2.
A key change to the TBAS from the
version distributed in September 2005 is that the statement of financial
position now includes severance pay liability.
Guidance on the calculation and recording of this liability has already
been distributed to Senior Full-Time Financial Officers.
Another change to the TBAS from
the September 2005 version, is that it does not explicitly apply to revolving
funds. The difference in the
spending authorities and specific reporting requirements for these entities may
require that certain aspects of the financial statement model be tailored.
Separate guidance for revolving funds will be distributed this summer.
Revolving funds have the option to continue reporting under their
existing model for the 2005-2006 year-end.
Departments are reminded that
allowances or liabilities that have been devolved to them in 2005-06 should
be reflected as an opening balance adjustment as of April 1, 2004 (where
appropriate). Departments are to
restate their 2004-2005 financial statements.
If the 2005-06 financial
statements will be the first statements made public, no mention of the prior
period adjustment should be made in the statements.
Departments are reminded that
starting with fiscal year 2005-2006, the financial statements are to be
published in the Departmental Performance Report (DPR). Instructions on their
publication will be included in the preparation guide for the 2005-2006 DPR.
To ensure the greatest quality of the financial statements prior to their
release, departments are being provided with additional time this year-end prior
to their finalization:
-
June 15th, unsigned version
of the financial statements (i.e. near final draft) to be submitted to the
Office of the Comptroller General (OCG) for review. Comments will be provided back to departments within a month of receipt.
-
August 15th, final signed
version to be submitted to the Office of Comptroller General
Departments are encouraged to
provide earlier drafts of their financial statements without 2005-06 amounts,
so that OCG can discuss any proposed changes with the department as early as
possible.
Departments that will have their
2005-2006 financial statements audited are to approach the Government Accounting
Policy and Reporting division with any issues raised by their auditors on the
application of the TBAS.
Two meetings have been scheduled
to present in detail the changes to TBAS 1.2 and answer any questions.
Departments have the option to send a representative(s) to either of the
following meetings:
-
Friday March 24th,
2006 1:30 to 3:00 p.m.
-
Wednesday March 29th
1:30 to 3:00 p.m.
-
L'Esplanade Laurier, 8th Floor,
-
East Tower, Boardroom E
Please forward the name(s) of any
representative from your department/agency planning to attend and identify the
date of the meeting selected to Chantal Lemyre at 957-2527 or
Lemyre.Chantal@TBS-SCT.gc.ca.
Questions on the TBAS and draft financial statements should also be forwarded to
Chantal Lemyre.
c.c.: Senior Full-Time Financial
Officers
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