TBAS 1.2 – Reporting requirements for Fiscal Year ending March 31, 2012 for accounting of the workforce adjustment costs
To: Deputy Chief Financial Officers
Message from Sylvain Michaud, Executive Director, Government Accounting Policy and Reporting, Office of the Comptroller General
In connection with the preparation of the consolidated financial statements of the Government of Canada, the purpose of this communication is to advise you that the overall cost of workforce adjustment measures associated with the implementation of the cost savings measures included in Budget 2012 will be recorded centrally by the Government of Canada.
Organizations should record the cost of workforce adjustment measures in their 2011-12 departmental financial statements taking into account the materiality at the entity level financial statements. This cost should be included for the presentation of the financial statements but is not to be recorded in the departmental trial balance since it will be recorded centrally by the Government of Canada in the Central Financial Management and Reporting System trial balance and presented in the 2011-12 financial statements of the Government of Canada for the year ended March.
The cost of the workforce adjustment measures is recognized consistent with Public Sector Accounting Standards 3255, Post-Employment Benefits, Compensated Absences and Termination Benefits as an obligation for the termination benefits. Organisations would include for presentation in their financial statements, the estimate of the workforce adjustment costs associated with the cost savings measures included the Budget 2012.
Should you have any questions regarding this communication, please contact Annie Boyer at 613-957-9671.
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