PSAB at a Glance: Section PS 4200 - BDO Canada
PSAB at a Glance: Section PS 4200 - BDO Canada
PSAB at a Glance: Section PS 4200 - BDO Canada
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April 2013<br />
<strong>Section</strong> <strong>PS</strong> <strong>4200</strong> - Financial St<strong>at</strong>ement Present<strong>at</strong>ion by<br />
Not-for- Profit Organiz<strong>at</strong>ions 1<br />
COMPONENTS OF FINANCIAL STATEMENTS<br />
Effective D<strong>at</strong>e<br />
Fiscal periods beginning on or after January 1, 2012<br />
• Financial st<strong>at</strong>ements of a government not-for-profit organiz<strong>at</strong>ion normally include:<br />
• St<strong>at</strong>ement of Financial Position<br />
• St<strong>at</strong>ement of Oper<strong>at</strong>ions<br />
• St<strong>at</strong>ement of Changes in Net Assets (can be combined with the St<strong>at</strong>ement of Oper<strong>at</strong>ions)<br />
• St<strong>at</strong>ement of Remeasurement Gains and Losses 2<br />
• St<strong>at</strong>ement of Cash Flows<br />
• Notes<br />
• Supporting schedules<br />
• All st<strong>at</strong>ements are required to be presented with equal prominence.<br />
• Notes and supporting schedules which the financial st<strong>at</strong>ements are cross-referenced to are an integral part of the financial st<strong>at</strong>ements. The same does not apply to inform<strong>at</strong>ion set out in other m<strong>at</strong>erial<br />
<strong>at</strong>tached to or submitted with the financial st<strong>at</strong>ements.<br />
FUND ACCOUNTING<br />
• Comprises the collective accounting procedures resulting in a self-balancing set of accounts for each fund established by legal, contractual or voluntary actions of an organiz<strong>at</strong>ion. Elements of a fund can include<br />
assets, liabilities, net assets, revenues and expenses (and gains and losses, where appropri<strong>at</strong>e). Fund accounting involves an accounting segreg<strong>at</strong>ion, although not necessarily a physical segreg<strong>at</strong>ion, of resources.<br />
• An organiz<strong>at</strong>ion makes an accounting policy choice whether or not to use fund accounting.<br />
• An organiz<strong>at</strong>ion th<strong>at</strong> uses fund accounting must provide a brief description of the purpose of each fund reported in its financial st<strong>at</strong>ements. This description would include the types of expenses reported in the<br />
fund and the extent to which the fund is used to report restricted resources.<br />
• Each fund reported would be presented on a consistent basis from year to year. A change in the revenues and expenses reported in a particular fund would constitute a change in accounting policy unless the<br />
change results from events / transactions clearly different from those th<strong>at</strong> previously occurred or those occurring for the first time.<br />
• When an organiz<strong>at</strong>ion uses fund accounting it may present its financial st<strong>at</strong>ements using the multi-column form<strong>at</strong> where resources / similar groups of resources are each assigned to a separ<strong>at</strong>e column.<br />
• Other financial st<strong>at</strong>ement form<strong>at</strong>s may also be used when an organiz<strong>at</strong>ion is using fund accounting as long as the financial inform<strong>at</strong>ion of the organiz<strong>at</strong>ion as a whole is presented in accordance with this <strong>Section</strong>.<br />
• Different form<strong>at</strong>s for individual st<strong>at</strong>ements may also be used as long as the inform<strong>at</strong>ion is presented in a way th<strong>at</strong> s<strong>at</strong>isfies the requirements of this <strong>Section</strong>.<br />
INTERFUND TRANSFERS AND BALANCES<br />
• Interfund transfers must be presented in the St<strong>at</strong>ement of Changes in Net Assets as transfers between funds or transfers between funds and reserves during a reporting period do not increase / decrease the<br />
economic resources of an organiz<strong>at</strong>ion as a whole.<br />
• An organiz<strong>at</strong>ion must disclose the amount and purpose of interfund transfers during the reporting period.<br />
• An organiz<strong>at</strong>ion must disclose the amounts, terms and conditions of interfund loans outstanding <strong>at</strong> the reporting d<strong>at</strong>e.<br />
• When a multi-column form<strong>at</strong> is used to present an organiz<strong>at</strong>ion’s financial st<strong>at</strong>ements, interfund loans and advances are presented in the individual funds and elimin<strong>at</strong>ed in the totals column of the St<strong>at</strong>ement of<br />
Financial Position.<br />
• When a single column form<strong>at</strong> is used, only the notes to the financial st<strong>at</strong>ements would provide disclosure of interfund loans and amounts receivable.<br />
1 <strong>PS</strong> <strong>4200</strong> covers the present<strong>at</strong>ion and disclosure requirements for financial st<strong>at</strong>ements of government not-for-profit organiz<strong>at</strong>ions (GNPOs), excluding general reporting principles, the St<strong>at</strong>ement of Cash Flows and the St<strong>at</strong>ement of<br />
Remeasurement Gains and Losses for which guidance is provided in <strong>PS</strong> 1201 – Financial St<strong>at</strong>ement Present<strong>at</strong>ion. For more inform<strong>at</strong>ion on these areas, please refer to our public<strong>at</strong>ion “<strong><strong>PS</strong>AB</strong> AT A GLANCE: <strong>PS</strong> 1201 – Financial<br />
St<strong>at</strong>ement Present<strong>at</strong>ion”.<br />
2 A St<strong>at</strong>ement of Remeasurement Gains and Losses may be required by applic<strong>at</strong>ion of <strong>Section</strong>s <strong>PS</strong> 2601, Foreign Currency Transl<strong>at</strong>ion, and <strong>PS</strong> 3450, Financial Instruments.