198/2011

Treasury Board

November 23, 2011

Budget Transparency and Accountability Act

Restricted Contributions Regulation

Definitions

In this regulation:

land does not include buildings, houses or other depreciable

improvements;

restricted contribution means a contribution that is subject to a

legislative or contractual stipulation or restriction as to its use other than a

contribution or part of a contribution that is of, or for the purpose of acquiring,

land;

taxpayer-supported organization means a government organization that is

within the taxpayer-supported government reporting entity.

Accounting policies and practices for restricted

contributions

In its accounts, a taxpayer-supported organization must report any restricted

contribution received or receivable by it in accordance with the accounting policies and

practices described in this section.

A restricted contribution received or receivable by a taxpayer-supported

organization for the purpose of acquiring or developing a depreciable tangible capital

asset or in the form of a depreciable tangible capital asset, in each case for use in

providing services, is to be reported as follows:

it is to be treated as a deferred contribution;

the associated liability is to be reduced, and the associated revenue

recognized, at the same rate that amortization is recognized in respect of the

asset;

the reduction of the liability and the recognition of the revenue are to be

accounted for in the fiscal period during which the asset is used to provide

services.

A restricted contribution received or receivable by a taxpayer-supported

organization other than as described in subsection (2) is to be reported as follows:

it is to be treated as a deferred contribution;

the associated liability is to be reduced, and the associated revenue

recognized, in the fiscal period during which the stipulation or restriction the

contribution is subject to is met.

If the net book value of a depreciable tangible capital asset of a

taxpayer-supported organization related to a restricted contribution is reduced for any

reason other than amortization, the accounts of the taxpayer-supported organization are to

recognize a proportionate reduction of the liability associated with the contribution and

a proportionate increase in the revenue associated with the contribution.

This

section applies to the reporting of restricted contributions, whether they

are received or receivable by a taxpayer-supported organization before or after this

regulation comes into effect.

This

section operates despite any Act other than the Budget Transparency and

Accountability Act .

[Provisions relevant to the enactment of this regulation: Budget

Transparency and Accountability Act , S.B.C. 2000, c. 23,

section

23]