Allowance for valuation

Public Accounts of Canada 2020 Volume I: Top 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

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

The allowance for valuation, for loans, investments and advances, represents the estimated losses on the realization of the loans, investments and advances included in the accounts of Canada at year end. In 2018, the provisioning methodology used in the government's allowance calculation was updated for its sovereign exposures. The most significant change is the introduction of obligor-specific loss given default rates that replace a general rate used for all obligors. This change is designed to provide more accurate credit loss estimates for sovereign loan exposures. The change in the methodology has been accounted for as a change in estimate and did not result in a significant impact to the allowance for valuation.

Public Accounts of Canada 2020 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