Future-oriented statements of operations 2018-2019

Departmental management is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared.  These statements are based on the best information available and assumptions adopted as at March 20, 2018 and reflect the plans described in the Report on Plans and Priorities.

Ian McKay
Chief Executive Officer

Ottawa, Canada
March 20, 2018

Future-oriented Statement of Operations (Unaudited)

Notes to the Future-Oriented Statement of Operations (Unaudited)

1. Methodology and Significant Assumptions

The future-oriented statement of operations has been prepared on the basis of the government priorities and the plans of Invest in Canada as described in the Departmental Plan.

The information in the forecast results for fiscal year 2017-18 is based on actual results as at March 11, 2018 and on forecasts for the remainder of the fiscal year.  Forecasts have been made for the planned results for the 2018-19 fiscal year.

The main assumptions underlying the forecasts are as follows:

1. Invest in Canada, as a newly established Departmental Corporation, will be subject to substantial growth through 2018-19.
2. Expenses, including the determination of amounts internal and external to the government, are based on estimates of planned growth and activities throughout 2018-19.

These assumptions are made as at March 20, 2018.

2. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2017-18 and for 2018-19, 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, Invest in Canada has made estimates and assumptions concerning the future, and these estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on past 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:

1. The timing and the amount related to leasehold improvements which may affect gains, losses and amortization expense. 
2. As a start-up, Invest in Canada is in the process of finalizing its suite of financial, procurement, and materiel management policies and processes, as well as refining its organizational structure and compensation framework.
3. 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, Invest in Canada 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's accounting policies in effect for fiscal year 2017−18, 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:

1. Expenses
   Invest in Canada records expenses on an accrual basis.
   Expenses for Invest in Canada's operations are recorded when goods are received or services are rendered including services provided without charges for accommodation and worker's compensation which are recorded as expenses at their estimated cost. Vacation pay and compensatory leave, as well as severance benefits, are accrued and expenses are recorded as the benefits are earned by employees based on draft terms of employment and are subject to the Board of Directors` approval once a quorum is reached.  Invest in Canada human resource policies and processes, compensation framework, and terms and conditions of employment are under development.
   Expenses also include amortization of tangible capital assets, which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.
2. Revenues
   Invest in Canada does not generate revenue.

4. Parliamentary authorities

Invest in Canada is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to Invest in Canada 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, Invest in Canada 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:

Forecast authorities reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.