2026-2027 Future-Oriented Statement of Operations
For the Year Ending March 31, 2027

Impact Assessment Agency of Canada
Future-Oriented Statement of Operations (Unaudited)
For the year ending March 31
(in dollars)

The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Impact Assessment Agency of Canada
Notes to the Future-Oriented Statement of Operations (Unaudited)

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared based on government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2025-26 is based on actual results as at October 31^st, 2025, and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2026-27.

The main assumptions underlying the forecasts are as follows:

• The Impact Assessment Agency of Canada’s (IAAC) activities will remain substantially the same as in the previous year.
• As a result of expenditures being limited to routine and legally required items at the start of the 2025–26 fiscal year under the caretaker convention, and IAAC’s immediate alignment with the spending restraint measures under the Comprehensive Expenditure Review announced in Budget 2025, lower expenses and $10,225,470 of unused parliamentary authorities are forecasted for 2025–26. This outcome reflects IAAC’s commitment to financial prudence in the context of the Government of Canada’s renewed emphasis on expenditure control. The significant reduction in expenses in 2025-26 reduces the basis of comparison for future years.
• Total expenses are projected to increase by $2,186,826 (1.8%) in 2026–27. This apparent year-over-year increase reflects the unusually low level of expenses in 2025–26 due to sustained restraint measures, rather than an expansion of activities in 2026–27.
• Planned expenses in 2026-27 are also influenced by increased demand for impact assessment services, which drives higher cost-recovery revenues. Revenues are expected to increase in 2026 27 by $2,923,844 due to the anticipated progression of several designated projects currently undergoing impact assessments and expected to be referred to review panels. IAAC has the authority to spend up to $8M in cost-recovery revenues, which contributes to the increase in planned expenses for 2026–27 without increasing net government spending.

These assumptions are made as at December 11, 2025.

2. Variations and changes to forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2025-26 and for 2026-27, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, IAAC has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include:

• the timing and the amount of acquisitions and disposals of tangible capital assets which may affect gains, losses, and amortization expense;
• the outcome of existing and potential claims and litigation;
• economic conditions, which may affect both the amount of revenue earned and the collectability of receivables; and
• other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year.

After the Departmental Plan is tabled in Parliament, IAAC will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.

3. Summary of significant accounting policies

The Future-Oriented Statement of Operations has been prepared using the Government of Canada’s accounting policies in effect for fiscal year 2025-26, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

a) Expenses

Transfer payments are recorded as an expense in the year the transfer is authorized, and all eligibility criteria have been met by the recipient.

Other expenses are generally recorded when goods are received or services are rendered and include expenses related to salaries and employee benefits, professional and special services, accommodation, travel and relocation, information, furniture and equipment, telecommunications, utilities, materials and supplies, repair and maintenance, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, are also included in other expenses.

b) Revenues

Environmental assessment and training services are recorded when they are earned.

4. Parliamentary authorities

IAAC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to IAAC differs from financial reporting according to generally accepted accounting principles because authorities are based mainly on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, IAAC has different net costs of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables: