TBAS 1.2 – Reporting requirements for Fiscal Year ending March 31, 2012 for disclosure of the obligation for termination benefits
To: Deputy Chief Financial Officers
Message from Sylvain Michaud, Executive Director, Government Accounting Policy and Reporting, Office of the Comptroller General
The purpose of this communication is to provide additional guidance on the disclosure of the obligation for termination benefits associated with the estimated workforce adjustment costs included in Budget 2012 in the 2011-2012 departmental financial statements as previously provided on .
As per the previous communication, recognition of the obligation for termination benefits is in compliance with the Public Sector Accounting Standards 3255, Post-Employment Benefits, Compensated Absences and Termination Benefits. Organizations are reminded to record an obligation and provide additional disclosure taking into account the materiality at the entity level financial statements.
For presentation purposes only, the obligation for termination benefits should be recorded as an accrued liability included in the Accounts Payable and Accrued Liabilities in the Statement of Financial Position and the expense should be recorded as salaries and employee benefits.
If this transaction is considered material by an organization, additional disclosure should be provided in Note 4 as per the departmental financial statements illustrative package as follow:
4. Accounts payable and accrued liabilities
The following table presents details of the Department's accounts payable and accrued liabilities:
|Accounts payable and accrued liabilities||2012*||2011*|
* In thousands of dollars
|Accounts payable - Other government departments and agencies||$32,456||$27,894|
|Accounts payable - External parties||144,266||126,116|
|Total accounts payable||176,722||154,010|
|Total accounts payable and accrued liabilities||$190,441||$162,016|
In Canada’s Economic Action Plan 2012, the Government announced savings measures to be implemented by departments over the next three fiscal years starting in 2012-2013. As a result, the Department has recorded at an obligation for termination benefits for an amount of $xx thousand as part of accrued liabilities to reflect the estimated workforce adjustment costs.
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