Section 9: Loans, investments and advances as at March 31

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Loans, investments and advances

Loans, investments and advances is a category of financial claims represented by debt instruments and ownership interests acquired through the use of parliamentary appropriations, except for the portion of the investment balances representing adjustments for the equity of enterprise Crown corporations and other government business enterprises. Some of these appropriations permit repayments to be used for further loans and advances. Details of the use of non-budgetary appropriations, for loans, investments and advances, can be found in the ministerial sections of Volume II.

The investment in enterprise Crown corporations and other government business enterprises is accounted for under the modified equity method and is carried at cost which is adjusted for the annual profits or losses of the enterprises and reduced by any dividends paid by the corporations to the government. Under the modified equity method, the accounting policies of the enterprise Crown corporations and other government business enterprises are not adjusted to conform to the government's accounting policies. The government also reports any amounts receivable from or payable to these corporations and where the government has advanced funds to the corporations to support their direct lending activities, the amounts are recorded as loans and advances by the government.

Other loans, investments and advances are initially recorded at cost and are subject to annual valuation to reflect reductions from the recorded value to the approximate net recoverable value. Foreign currency transactions are translated and recorded in Canadian dollar equivalents at the exchange rates prevailing at the transaction dates. Balances of loans, investments and advances resulting from foreign currency transactions are reported at year-end closing rates of exchange; net gains and losses related to these sovereign loans are presented with the return on investments from these loans under other program revenues.

The allowance established to reflect reductions from the recorded value to the approximate net recoverable value of financial claims held by the government has been authorized by the Minister of Finance and the President of the Treasury Board, under subsection 63(2) of the Financial Administration Act.

Revenues received during the year on loans, investments and advances, are credited to other revenues. Details can be found in Section 3 of this volume and in Section 10 of Volume III.

Table 9.1
Loans, investments and advances
(in dollars)
  April 1, 2020 Payments and other charges Receipts and other credits March 31, 2021
Enterprise Crown corporations and other government business enterprises, Table 9.2 125,107,694,853 37,828,052,936 42,941,991,187 119,993,756,602
Portfolio investments, Table 9.10 68,424,709 53,060,500 356,649 121,128,560
National governments including developing countries, Table 9.11 450,146,668 35,998,445 144,671,881 341,473,232
International organizations, Table 9.12 24,924,233,900 1,532,216,903 300,801,991 26,155,648,812
Provincial and territorial governments, Table 9.13 346,448,905 31,940,250 22,949,188 355,439,967
Other loans, investments and advances, Table 9.14 31,343,489,021 52,894,557,117 5,137,665,618 79,100,380,520
Subtotal 182,240,438,056 92,375,826,151 48,548,436,514 226,067,827,693
Less: allowance for valuation 29,739,108,582 17,523,151,172 472,109,696 46,790,150,058
Total 152,501,329,474 74,852,674,979 48,076,326,818 179,277,677,635

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