COVID-19 and its potential effect on the financial self-sufficiency of government business enterprises
Apr 08, 2021
On April 8, 2021, the Public Sector Accounting Board (PSAB) released guidance on how to evaluate a government business enterprise's financial self-sufficiency or viability during the COVID-19 pandemic.
The COVID-19 pandemic may impair the viability of some GBEs, and/or their financial self-sufficiency from revenue outside their controlling government’s reporting entity. “How to Evaluate a GBE’s Financial Self-Sufficiency” examines factors affecting a GBE’s current and future financial performance, which could include the COVID-19 pandemic. It also:
- draws on and magnifies CPA Canada Public Sector Accounting Handbook guidance for meeting the financial self-sufficiency criteria in the GBE definition;
- outlines factors, changes in factors, and questions for controlling governments to consider; and
- represents an important new starting place for comprehensively evaluating a GBE’s financial self-sufficiency.
Review the press release and guidance on the PSAB's website.