Section PS 3070 - Investments in government business enterprises
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Effective date: |
April 1, 2000 |
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Published by PSAB: |
April 2000 |
Overview
This Section establishes standards on how to account for and report investments in government business enterprises in government financial statements by the modified equity method of accounting.
Under the modified equity method, the equity method of accounting is modified only to the extent that the government business enterprise's accounting principles are not adjusted to conform with those of the government. Thus, the government aggregates a government business enterprise's net assets and net income by adjusting the investment shown in the government's consolidated statement of financial position and by presenting the net income as a separate item on the government's consolidated statement of operations.
History of Section PS 3070
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Date |
Development |
Comments |
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April 2000 |
New Section |
This new Section recommends how to account for and report a government's investments in government business enterprises in government summary financial statements. It applies to federal, provincial, territorial and local governments. |
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March 2012 |
Annual improvements |
Paragraph .39, is deleted as the constructive retirement of a debt obligation in situations outlined in paragraphs .35-.38 is consistent with requirements to eliminate inter-governmental unit transactions and balances and derecognize liabilities. |
Note: The above summary does not include details of consequential amendments made as the result of other projects.
Public Sector Accounting Discussion Group meetings
- November 19, 2018 - Section PS 3070: Accounting for Indigenous Government Business Enterprises
