Rescinded [2010-06-01] - Accounting Standard 1.1 - Treasury Board - Policy and Principles

This standard describes the Treasury Board's policy on accounting.
Date modified: 2010-06-01

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Departments will follow generally accepted accounting principles as defined in the Canadian Institute of Chartered Accountants Public Sector Accounting (PSA) Handbook. Specifically, departments will use the "expense basis" of accounting as referred to in the handbook (PS Section 1500.93). Subject to modifications or interpretations by the Treasury Board, the PSA Handbook will be the authoritative reference manual. In situations where a specific item is not covered in the PSA Handbook, then the Canadian Institute of Chartered Accountants (CICA) Handbook will be used.


This policy applies to all organizations considered to be departments within the meaning of Section 2 of the Financial Administration Act (FAA).

Policy requirements

Each department, as defined by Section 2 of the FAA, will produce annually a full set of financial statements as at March 31 that can withstand the test of audit. These statements will consist of a Statement of Financial Position, a Statement of Operations, a Statement of Cash Requirements and a Statement of Expenditure Authorities Used, together with required Notes and Schedules.

The financial statements, accompanied by a Statement of Management Responsibility and an Auditor's Report, if required by legislation or policy, must be available to the Receiver General for Canada by June 15th of each year. Furthermore, departments will publish the financial statement package in their Departmental Performance Report.


Generally, departments will record all accounting transactions specific to their department. Thus, departments will be responsible for such things as allowances and valuation accounts that are department specific e.g. allowance for bad debts, accrued vacation pay, etc. Any exceptions will be determined by the Treasury Board Secretariat (TBS) and departments will be advised accordingly.

To the extent possible, department specific financial information now contained in the Public Accounts will be included in either the departmental financial statements or the supplementary financial information attached thereto. All financial information required on a government-wide basis would continue to be included in the Public Accounts.

Except to ensure an appropriate level of consistency for government financial reporting, departments will establish accounting policies specific to their needs subject to the recommendations contained in the PSA and CICA Handbooks.


This policy is issued under the authority of the Financial Administration Act section 9. (1).

Effective date

This policy is effective 1 April 2001. However, departments that are FIS system compliant are encouraged to implement it earlier.

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