Future-Oriented Statement of Operations (Unaudited): 2026-2027

The Future-Oriented Financial Statement of Operations has been prepared based on government priorities and departmental plans as described in the Departmental Plan.

The information in the forecasted results for fiscal year 2025‑26 is based on actual results as at January 15, 2026 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2026‑27 fiscal year.

The main assumptions underlying the forecasts are as follows:

• The Organization's activities will remain substantially the same as in the previous year.
• Expenses and revenues, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue.

These assumptions are adopted as at January 15, 2026.

Although every attempt has been made to forecast final results for the remainder of 2025‑26 and for 2026‑27, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

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

• the timing and the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense;
• the implementation of new collective agreements;
• other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, the Organization will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.

The Future-Oriented Statement of Operations has been prepared using Government of Canada accounting policies that came into effect for the 2024‑25 fiscal year and is based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

1. Expenses

   • Transfer payments are recorded as an expense in the year the transfer is authorized, and all eligibility criteria have been met by the recipient.

     Other expenses are generally recorded when goods are received or services are rendered and include expenses related to personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, loans, investments and advances and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

The Organization is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Organization differs from financial reporting according to generally accepted accounting principles 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 prior, current or future years. Accordingly, the Organization has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables: