PacifiCan 2026 to 2027 Future-Oriented Statement of Operations (unaudited)

For the year ending March 31

Future-Oriented Statement of Operations (unaudited) for the year ending March 31

	Forecast Results 2025–26	Planned Results 2026–27
	(in dollars)
Expenses
Business Growth	$106,696,444	$84,035,527
Innovation	58,501,897	33,846,129
Business Services	14,553,790	18,213,299
Internal Services	12,314,682	10,711,839
Community Initiatives	3,612,276	17,908,478
Expenses incurred on behalf of government	(14,682,633)	5,728,162
Total expenses	180,996,456	170,443,434
Revenues
Amortization of discount	0	5,111,837
Interest	1,130,775	707,119
Other	16,636	20,643
Revenues earned on behalf of government	(1,147,411)	(5,839,599)
Total revenues	0	0
Net cost of operations before government funding and transfers	$180,996,456	$170,443,434

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

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Notes to the Future-Oriented Statement of Operations (unaudited)
For the year ending March 31

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared 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, 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 department's activities will remain substantially the same as in the previous year.
• Expenses and revenues, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue.
• Allowances for uncollectible accounts are based on historical experience. The general historical pattern is expected to continue.

These assumptions are made as at October 31, 2025.

2. Variations and changes to the 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, Pacific Economic Development Canada (PacifiCan) 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 property, plant and equipment, which may affect gains, losses and amortization expense;
• the implementation of new collective agreements;
• economic conditions, which may affect both the amount of revenue earned and the collectability of loan receivables;
• interest rates in effect at the time of issue, which will affect the net present value of non-interest bearing loans; 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, PacifiCan 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, and is 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 personnel, professional and special services, repair and maintenance, utilities, materials and supplies, 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, loans, investments and advances and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

b) Revenues

Revenues from regulatory fees without performance obligations are recognized when there is authority to claim inflows of economic resources and the past transaction or event has occurred.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

Deferred revenue consists of amounts received prior to the provision of goods or services that will be recognized as revenue in a subsequent fiscal year as the performance obligations are met.

Other revenues are recognized in the period the event giving rise to the revenues occurred and future economic benefits are expected to be received.

Revenues that are non-respendable are not available to discharge PacifiCan’s liabilities. Although the deputy head is expected to maintain accounting control, (s)he has no authority over the disposition of non-respendable revenues. As a result, non-respendable revenues are earned on behalf of the Government of Canada and are therefore presented as a reduction of PacifiCan’s gross revenues.

4. Parliamentary authorities

PacifiCan is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to PacifiCan 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, PacifiCan has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to requested authorities

	Forecast Results 2025–26	Planned Results 2026–27
	(in dollars)
Net cost of operations before government funding and transfers	$180,996,456	$170,443,434
Adjustment for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(3,910,725)	(3,936,123)
Decrease (increase) in vacation pay and compensatory leave	(81,316)	97,588
Decrease (increase) in employee future benefits	(66,392)	(7,575)
Decrease (increase) in accrued liabilities not charged to authorities	293,987	1,440,847
Refunds of previous years' expenditures	5,733,954	3,203,465
Other	0	0
Total items affecting net cost of operations but not affecting authorities	1,969,508	798,202
Adjustment for items not affecting net cost of operations but affecting authorities:
Unconditionally repayable transfer payments	29,821,441	9,337,958
Increase in employee advances	5,413	3,321
Total items not affecting net cost of operations but affecting authorities	29,826,854	9,341,279
Requested authorities forecasted to be used	$212,792,818	$180,582,915

b) Authorities requested

	Forecast Results 2025–26	Planned Results 2026–27
	(in dollars)
Authorities provided/requested
Vote 1 - Operating expenditures	$32,645,474	$30,007,662
Vote 5 - Transfer payments	179,887,185	146,993,207
Statutory amounts	3,380,713	3,582,046
Total authorities provided/requested	$215,913,372	$180,582,915
Less: Estimated unused authorities and other adjustments	(3,120,554)
Requested authorities forecasted to be used	$212,792,818	$180,582,915