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Section PS 1300 - Government reporting entity

Effective date:

April 1, 2005 (Consolidation of certain government organizations is only required for fiscal years beginning on or after April 1, 2009). Earlier adoption is encouraged.

Published by the PSAB:

June 1996


This Section defines the scope of the government reporting entity in terms of the organizations whose financial affairs and resources would be included in government financial statements and establishes standards on how to account for and disclose those organizations in government financial statements. It also establishes standards on how to account for and disclose portfolio investments and trusts under administration.

A reporting entity is the government and organizations controlled by it. A list of indicators that provide more persuasive evidence of control and other indicators of control are included in this Section. The ability of the parent to obtain either financial or non-financial benefits from the entity is also considered.

History of Section PS 1300




June 1996

Modified Section

This revised Section recommends which organizations should form part of the government's financial reporting entity and how those organizations should be accounted for in the government's financial statements. It also recommends how to account for other long-term investments and trusts.

August 2003

Modified Section

The following changes have been made to the Section:

  1. The government reporting entity should comprise those organizations that are controlled by the government.
  2. For purposes of applying the Section, control is the power to govern the financial and operating policies of another organization with expected benefits or the risk of loss to the government from the other organization's activities.
  3. Indicators of control are provided as guidance for assessing whether a government controls an organization. Some indicators of control are more persuasive than others but, on balance, it is the preponderance of evidence that would be considered in determining whether control exists.
  4. Guidance is provided on temporary control as well as situations where control does not exist. Examples include: trusts under administration, regulation and financial dependence.

June 2004

New transitional provisions

This Section has been amended to add transitional provisions that allow a government, in limited cases, to choose to defer consolidating certain government organizations until fiscal years beginning on or after April 1, 2008.

March 2009

Amended transitional provisions

The transitional provisions of this Section that allow a government, in limited cases, to choose to defer consolidating certain government organizations have been extended by one year to fiscal years beginning on or after April 1, 2009.

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Public Sector Accounting Discussion Group meetings

  • March 3, 2016 - Sections PS 1000, PS 1100 and PS 1300: Definition of Government in Relation to First Nations Trusts
  • March 15, 2017 - Section PS 1300: Trusts and Holding Companies – Economic Substance

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.