Allowance for valuation

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In accordance with the comprehensive policy on valuation, assets are subject to an annual valuation to reflect reductions from the recorded cost to the estimated net recoverable value.

When necessary, an allowance for valuation is recorded to reduce the carrying amount of other loans, investments and advances to amounts that approximate their net recoverable value. The valuation allowance for other loans, investments and advances reflects the collectability and risk of loss based on past events, current conditions, known circumstances and if applicable a provision for forgiveness. The determination of the valuation allowance considers the borrower’s or group of borrowers’ credit risk rating, collateral provided, recent collection history, economic situation in the country or industry of operation, and any other known circumstances impacting collectability.

Public Accounts of Canada 2024 Volume I—Bottom of the page Navigation

• Previous page: Other loans, investments and advances
• Section 9: Table of contents: Section 9: Loans, investments and advances as at March 31