Directive on Accounting Standards: GC 3400 Revenue

PS 3400 Revenue

April 1, 2023

1. The Government of Canada (GC) is applying PS 3400 on a prospective basis.

2. In accordance with PS 3400.89, when a public sector entity has the information necessary to record a transaction but does not expect to collect payment, disclosure of these amounts is required and no revenues are recognized as no future economic benefit are expected. However, in order to ensure that amounts owing are recorded in the Accounts of Canada, and to provide a complete and accurate listing of the amounts to be disclosed, these transactions should continue to be recorded as an amount receivable along with an offsetting allowance for doubtful accounts.
3. The determination of whether a transaction is recurring or non-recurring requires professional judgment. Recurring revenue is earned on transactions that are ongoing, routine activities that form part of the normal course of operations and that can be reasonably expected to be earned again in future years (PS 3400.88 (a)).
4. Significant concessionary terms within the Government of Canada are rare. The Office of the Comptroller General should be consulted if a department identifies such terms (PS 3400.90).
5. The Office of the Comptroller General should be consulted in the rare instances that a department is acting as an agent rather than as a principal for third parties outside the Government of Canada accounting entity (external transactions), or a revolving fund concludes that it is acting as an agent for external or internal transactions rather than as a principal (PS 3400.A35-A41).
6. The receipt of non-cash consideration is rare in the Government of Canada. If a department identifies non-cash consideration when determining the transaction price, the Office of the Comptroller General should be consulted (PS 3400.79).

7. Applies without additional policy choices or interpretation for Departmental Financial Statements.

• Interest and Administrative Charges Regulations
• Debt Write-Off Regulations, 1994 (SOR / 94-602)