Read the document
DownloadUpdated: October 2015
Effective Date: Fiscal periods beginning on or after April 1, 20171
Assets
- Assets are economic resources controlled by a public sector entity as a result of past transactions or events and from which future economic benefits are expected to be obtained.
- There are three essential characteristics of assets:
- They embody future economic benefits that involve a capacity, singly or in combination with other assets, to provide goods and services, to provide future cash inflows, or to reduce cash outflows;
- The public sector entity can control the economic resource and access the future economic benefits; and
- The transaction or event giving rise to the public sector entity’s control has already occurred.
Economic resources
- Economic resources embody value because they enable an entity to meet its objectives. To embody value as an economic resource there must be some restriction on an economic resource’s availability.
- Economic resources can arise from, but are not limited to:
- Contracts or agreements;
- Another government’s legislation;
- A government’s own legislation;
- Voluntary contributions; or
- Construction and development.
- Economic resources can be financial or non-financial in nature.
Disclosure
- An economic resource may meet the definition of an asset, but not be capable of being recognized in the financial statements because:
- An appropriate basis of measurement and a reasonable estimate of the amount involved cannot be made; or
- Other Handbook Sections prohibit recognition (i.e. intangibles, Crown land, etc).
- Information about the major categories of unrecognized assets must be disclosed in the notes.
- If an asset is not recognized because a reasonable estimate of the amount cannot be made the reason for this must be disclosed.
1 Earlier adoption of this Section is permitted.
BDO can help you navigate the road ahead
Applying financial reporting standards can be quite complex. The BDO team can help you assess your situation and prepare for the opportunities and challenges involved.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.