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, or the government's investments in financial instruments issued by those entities. 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. It is carried at cost, 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 it has advanced funds to the corporations to support their direct lending activities, the government records the amounts as loans and advances.

Other loans and advances are initially recorded at cost, and where applicable, are discounted to reflect any concessionary terms. Investments are measured at amortized cost unless quoted in an active market then they are measured at fair value. When necessary, an allowance for valuation is recorded to reduce the carrying value of other loans, investments and advances to amounts that approximate their 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 advancesLinks to footnote * in table 1
(in dollars)
  April 1, 2023 Payments and other charges Receipts and other credits March 31, 2024 Valuation Allowance Total
Enterprise Crown corporations and other government business enterprises, Table 9.2 151,050,834,451 73,792,986,317 59,499,500,230 165,344,320,538 – 165,344,320,538
Portfolio investments, Table 9.10 2,141,579,890 333,023,590 81,019,988 2,393,583,492 69,882,128 2,323,701,364
Capital subscriptions—International organizations, Table 9.11 17,892,702,549 486,916,000 29,879,330 18,349,739,219 18,349,739,219 –
Other loans and advances, Table 9.12 95,281,761,664 13,538,149,336 42,646,051,490 66,173,859,510 24,039,780,304 42,134,079,206
Total 266,366,878,554 88,151,075,243 102,256,451,038 252,261,502,759 42,459,401,651 209,802,101,108

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