Section PS 3310 - Loan guarantees

Effective date:

June 1, 1995

Published by the PSAB:

June 1995


This Section establishes standards on how to account for and report government loan guarantees in government financial statements.

A loan guarantee is a promise to pay all or a part of the principal and/or interest on a debt obligation in the event of default by the borrower. A loan guarantee is a contingent liability of the government. Government loan guarantees should be accounted for and reported as contingent liabilities in the government's financial statements.

The provision for losses on loan guarantees should be determined using the best estimates available in light of past events, current conditions, and taking into account all circumstances known at the date of preparation of the financial statements.

History of Section PS 3310




June 1995

New Section

This new Section recommends how governments should account for loan guarantees in their financial statements.

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

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