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Section PS 3070 - Investments in government business enterprises

Effective date:

April 1, 2000

Published by PSAB:

April 2000


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




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.

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.

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.