Site MenuPolitical Financing Handbook for Electoral District Associations and Financial Agents (EC 20089) – August 2021
10. Financial Statements in Part 4 of the Registered Association's Financial Transactions Return
This chapter explains the information required for each field in Part 4 of the Registered Association's Financial Transactions Return. The statements in that part must be completed based on the association's own financial statements, prepared in accordance with current accounting standards. The chapter covers the following topics:
- Statement of revenues and expenses
- Statement of assets and liabilities
Statement of revenues and expenses
| Field | Explanation |
|---|---|
| REVENUES | |
| Contributions | Monetary and non-monetary contributions received or receivable |
| Transfers | Monetary and non-monetary transfers received or receivable |
| Interest income | Bank interest and investment income received or receivable |
| Fundraising activities | Non-contribution portion of fundraising revenue |
| Other | Any revenue not listed above (provide supporting schedule) |
| Total revenues | |
| EXPENSES AND CASH OUTFLOWS | |
| Advertising – radio | Includes airtime charged by the radio station and other expenses associated with the advertisement, such as hiring talent, designing the advertisement, etc. |
| Advertising – TV | Includes airtime charged by the TV station and other expenses associated with the advertisement, such as hiring talent, designing the advertisement, etc. |
| Advertising – other | Signs, brochures, billboards, websites, social media |
| Voter contact calling services | Expenses not paid for by a political entity, for which the services were acquired |
| Bank charges and interest | Bank fees, cheque fees, overdraft charges, etc. |
| Amortization | Current year's depreciation of capital assets |
| Transfers | Monetary and non-monetary transfers made or payable |
| Fundraising activities | Total expenses paid or payable for fundraising events |
| Office expenses | Rent and utilities |
| Office expenses | Insurance, supplies, subscriptions and dues, maintenance, etc. |
| Polling and research | Polling and research conducted |
| Professional services | Include legal and consulting fees, and the auditor's fee |
| Salaries and benefits | Salaries and benefits paid to employees (administration, bookkeeping, etc.) |
| Travel and hospitality | Example: expenses of electoral district association officials or volunteers travelling to the party's annual convention |
| Other | Examples: registration fee for conventions, writedown of obsolete assets, and any other expense not listed above (provide supporting schedule) |
| Total expenses | |
| Net income (loss) | |
Statement of assets and liabilities
| Field | Explanation |
|---|---|
| CURRENT ASSETS | |
| Cash and equivalents | Bank account balance, short-term deposits and petty cash |
| Accounts receivable | Amounts owed to the registered association |
| Inventory | Signs and other items of significant value |
| Prepaid expenses | Prepaid insurance, property taxes, utilities, etc. |
| Other | Any asset not listed above (provide supporting schedule) |
| Total current assets | |
| LONG-TERM ASSETS | |
| Capital assets | Depreciated value of fixed assets, such as computers and related equipment, furniture, etc. (provide supporting schedule) |
| Other | Any other long-term asset, for example, a long-term investment (provide supporting schedule) |
| Total long-term assets | |
| Total assets | |
| CURRENT LIABILITIES | |
| Accounts payable and accrued liabilities | Outstanding charges applicable to the year reported (for example, monthly telephone bill, electricity bill) |
| Loans | 12-month payments applicable to the year reported on a multi-year loan (capital only) |
| Other | Any other current liabilities (provide supporting schedule) |
| Total current liabilities | |
| LONG-TERM LIABILITIES | |
| Loans | Loan balances owing (capital owed on Dec. 31 less 12 months' payments, which is the amount in Other current liabilities) |
| Other | Other long-term liabilities not listed above (provide supporting schedule) |
| Total long-term liabilities | |
| NET ASSETS | |
| Opening balance | Ending balance from the previous year's annual financial return |
| Add net income (subtract loss) | Current year's net income (or loss)—from the Statement of revenues and expenses |
| Ending balance = Accumulated surplus (deficit) | |
| Total liabilities and net assets | Must equal total assets |