Allowance for Guarantees

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This category of accounts payable and accrued liabilities includes the allowance for guarantees provided by the Government. An allowance is recorded for guarantees when it is likely that a payment will be made in the future to honour a guarantee and when the amount of the loss can be reasonably estimated. As at March 31, 2015, the allowance for guarantees is $317 million ($386 million in 2014).

Additional information relating to guarantees can be found in Note 18 — Guarantees in Section 2 and in Table 11.5 in Section 11 of this volume. In addition, Table 9.6 in Section 9 includes details on the borrowings of agent and non‑agent enterprise Crown corporations and other government business enterprises. In accordance with section 54 of the Financial Administration Act, the payment of all money borrowed by agent enterprise Crown corporations, and interest thereon, is a charge on and payable out of the Consolidated Revenue Fund. Such borrowings therefore constitute unconditional obligations of the Government. In contrast, borrowings of non‑agent enterprise Crown corporations and other government business enterprises may, at times, be guaranteed by the Government.

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