Accessibility Standards Canada: 2020 to 2021 Departmental Plan - Future-Oriented Statement of Operations (unaudited) for the year ending March 31 (in dollars)

Details	Forecast results 2019 to 2020	Planned results 2020 to 2021
Expenses
Accessibility Standards Canada	6,021,335	10,988,792
Internal services	3,869,855	4,439,640
Total expenses	9,891,190	15,318,432
Revenues
Lease and use of public property	n/a	n/a
Revenues earned on behalf of government	n/a	n/a
Total revenues	n/a	n/a
Net cost of operations before government funding and transfers	9,891,190	15,318,432

The notes are a key part of the Future-Oriented Statement of Operations.

Notes to the Future-Oriented Statement of Operations (unaudited)

1. Method and important assumptions

Accessibility Standards Canada prepared the Future-Oriented Statement of Operations based on government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2019 to 2020 is based on:

• Actual results on January 31, 2020; and
• Forecasts for the rest of the year

Accessibility Standards Canada made forecasts for the planned results for 2020 to 2021.

The main assumptions are:

• The organization’s activities will remain substantially the same
• Expenses are based on past experience. The general pattern from the past is expected to continue

These assumptions are made as of January 31, 2020

2. Differences and changes to the forecast financial information

Accessibility Standards Canada made every attempt to forecast final results for the rest of 2019 to 2020 and for 2020 to 2021. However, actual results for both years will likely be different from the forecast information, and this difference could be important.

Accessibility Standards Canada made estimates and assumptions about the future when preparing this Future-Oriented Statement of Operations. These estimates and assumptions may be different from the actual results. Estimates and assumptions are based on past experience and other factors, and they are continually evaluated.

Factors that could lead to differences between the Future-Oriented Statement of Operations and the past statement of operations include:

• the timing and the amount of acquisitions, transfers and disposals of property, plant and equipment, which may affect gains, losses and amortization (cost gradually going down) expense
• the implementation of new collective agreements
• other changes to the operating budget, such as new initiatives or technical adjustments later in the year

After the Departmental Plan is presented in Parliament, Accessibility Standards Canada will not be updating the forecasts for any changes in financial resources made in later supplementary estimates. Accessibility Standards Canada will explain the differences in the Departmental Results Report.

3. Summary of important accounting policies

Accessibility Standards Canada prepared the Future-Oriented Statement of Operations using the Government of Canada’s accounting policies for 2019 to 2020. The Future-Oriented Statement of Operations is based on Canadian public sector accounting standards. The presentation and results do not cause any big differences from Canadian public sector accounting standards.

Important accounting policies include:

a) Expenses

The department records expenses on an accrual basis (when they happen).

Expenses for the department’s operations are recorded when goods are received or services are provided. This includes services that are provided without charge for accommodation, employer contributions to health and dental insurance plans, legal services and workers’ compensation. These services are recorded as expenses at their estimated cost. Vacation pay, compensatory leave (leave with pay instead of cash), and severance benefits are built up over time. These expenses are recorded as the benefits are earned by employees under their terms of employment.

Transfer payments are recorded as expenses when the recipients have met all the eligibility criteria and the transfers are approved by March 31. If transfers are not part of an existing program, the transfers are considered to be authorized when the government announces a decision to make a non-recurring transfer. Authorization also requires that the legislation or approval for payment has parliamentary approval before the financial statements are completed.

Expenses also have rules about changes in the value of assets. Some of these rules are about bad debt, the value of a loan, investments and obligations.

Expenses also include amortization (cost gradually going down) of tangible capital assets, which are capitalized at their acquisition cost (total cost). Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.

b) Revenues (income)

Revenues from leasing and using public property are recognized from when the event occurred.

Non-respendable revenues (income that cannot be spent again) are not available to release Accessibility Standards Canada’s liabilities. While the President and Chief Executive Officer is expected to keep accounting control, he cannot get rid of non-respendable revenues. Non‑respendable revenues are earned on behalf of the Government of Canada and are therefore considered a reduction of the entity’s gross (total) revenues.

4. Parliamentary authorities

Accessibility Standards Canada is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities is different from financial reporting because authorities are based mainly on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in previous, current or future years. Therefore, Accessibility Standards Canada has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are outlined in the following tables:

a) Net cost of operations to requested authorities (in dollars)

Details	Forecast results 2019 to 2020	Planned results 2020 to 2021
Net cost of operations before government funding and transfers	9,891,190	15,318,432
Adjustment for items affecting net cost of operations but not affecting authorities:	n/a	n/a
Amortization of tangible capitals assets	n/a	n/a
Gain (loss) on disposal of tangible capital assets	n/a	n/a
Services provided without charge by other government departments	n/a	n/a
Decrease (Increase) in vacation pay and compensatory leave	n/a	n/a
Increase in employee future benefits	n/a	n/a
Refunds of previous years' expenditures	n/a	n/a
Total items affecting net cost of operations but not affecting authorities	n/a	n/a
Adjustment for items not affecting net cost of operations but affecting authorities:	n/a	n/a
Acquisition of tangible capital assets	n/a	n/a
Increase in prepaid expenses	n/a	n/a
Total items not affecting net cost of operations but affecting authorities	n/a	n/a
Requested authorities	9,891,190	15,318,432

b) Authorities requested (in dollars)

Authorities requested	Forecast results 2019 to 2020	Planned results 2020 to 2021
Vote 1 (operating expenditures)	5,866,751	9,121,581
Vote 1 (operating expenditures)	3,250,000	5,500,000
Statutory amounts	774,439	696,851
Total authorities requested	9,891,190	15,318,432