Accrual Accounting and Budgeting The Canadian Perspective

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Accrual Accounting and Budgeting The Canadian
Perspective

• Public Sector Accrual Symposium
• March 2006

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Overview

• 1. Current practice in Canada
• Future Directions
• Benefits Realized

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1. Current Practice in Canada

• Annual Consolidated Financial Statements of the
  Government of Canada are prepared on a full
  accrual basis
• Monthly financial results are released on a
  partial accrual basis
• Annual Budget (Government Wide) is prepared on a
  full accrual basis
• Departmental appropriations are on a modified
  cash basis
• Business Cases for new funding must contain
  both cash and accrual information

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2. Future Directions

• Office of the Auditor General and the Public
  Accounts Committee have strongly recommended
  moving to accrual appropriations
• Various models of accrual appropriations continue
  to be studied
• Views of new Government?
• Starting this year, departments will produce and
  make public full accrual financial statements

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3. Benefits Realized

• Asset identification
• Liabilities
• Environmental,
• Litigation related,
• Pension and benefits related,
• Quality of information greatly improved
• Better business cases

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