English | Français

NEW FIRST NATION FINANCIAL REPORTING REQUIREMENTS - EFFECTIVE JANUARY 1, 2009 - RESOURCES & TOOLS TO HELP

Self-governing First Nations are typically directed by their self-government legislation to follow Generally Accepted Accounting Principles or GAAP for governments as outlined in the Canadian Institute of Chartered Accountants (CICA) Public Sector Accounting (PSA) Handbook. Up until 2008, INAC’s  Year-End Reporting Handbook required First Nations to follow the local government reporting model then outlined in the PSA Handbook.

In an important development for all First Nations, the local government model underwent major changes and effective with fiscal years beginning on or after January 1, 2009, the local government reporting model is now the same as that for senior governments (provincial, territorial and federal governments). There is only one financial reporting model for governments in the PSA Handbook. This model is referred to as the Common Government Reporting model.  INAC’s year-end Reporting Handbook now requires First Nations to use the Common Government Reporting Model effective January 1, 2009. Click Here to download the INAC Year End Reporting Handbook (February 2010).

As a result of these developments there are some significant changes to how First Nations report on their financial results. Two key changes are: 1) how financial statements are presented and 2) the requirement that First Nations capitalize assets. 

AFOA has developed a number of resources and held a number of capacity development workshops since 2008/2009 to help First Nations meet these challenges.

Here are some resources to help understand these changes:

Financial Reporting by First Nations, Canadian Institute of Chartered Accountants (CICA) Canada

Click Here to download the Report

The Canadian Institute of Chartered Accountants (CICA) published Financial Reporting by First Nations in 2008, a ground-breaking report authorized by the Public Sector Accounting Board (PSAB) of the CICA. Published independently of the CICA’s standard-setting process, the Report addresses the lack of accounting standards explicitly for First Nations by examining the changing environment for First Nations financial reporting, users and their needs, objectives of First Nations general purpose financial statements, and the reporting entity. The Report concludes that adopting the reporting model for governments in Canada based on the accounting recommendations of PSAB best suits the needs of preparers, auditors and users of First Nations general purpose financial reporting. This recommendation contributed to INAC’s new financial reporting guidelines introduced January 1, 2009.

Preparing Financial Statements under the Common Government Reporting Model

Click Here to download the Manual

This Manual was developed by AFOA in 2008/2009  for workshops held to provide an overview of the key challenges that financial staff will face when these changes went into effect January 2009.

Topics include:

  • Statement of financial position
  • Statement of Operations
  • Statement of Change in Net Debt
  • Statement of Cash flows
  • Overview of accounting for tangible capital assets

Click Here to find the solutions for the exercises contained in this manual.

PSAAB GAAP for First Nations - Tangible Capital Assets - Reference Manual and Workshop

Click Here for Reference Manual

This Manual was developed for workshops that AFOA has developed focusing specifically on changes in First Nations accounting for Tangible Capital Assets (TCAs). It is intended to help First Nation staff identify, value and report on their TCAs. Topics include:

  • Understanding the new accounting standards
  • Validating the need for TCA
  • Developing TCA accounting policies
  • Developing a TCA implementation plan

For the powerpoint presentation for this workshop and hand-outs Click on each:

Contact AFOA for delivery of this one-day workshop in your community.

Converting Financial Statements - Practical Hands on Workshop

This one day workshop is a practical hands-on workshop that AFOA developed to provide insight into the changes in First Nation Financial reporting and the Common Government Reporting Model.

Topics include:

  • Identifying the changes that must take place in First Nations financial reporting systems
  • Developing a list of new ledger accounts
  • Working through existing financial information and beginning the process of conversion
  • Recognizing that revised financial statements look like.

For the powerpoint presentation for this workshop, hands-on exercises, best practice samples and sample financial statements, and other hand-outs, Click on each:

Contact AFOA for delivery of this one-day workshop in your community.