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Reference

Glossary

The terms on Canadian financial statements, condominium documents and accountants’ reports, in plain language.

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Accrual basis
Recording revenue when earned and expenses when incurred, whether or not cash has moved. Canadian GAAP statements use it.
Amortization
Spreading the cost of a long-lived asset over its useful life. The Canadian term for what is often called depreciation elsewhere.
ASPE
Accounting Standards for Private Enterprises, Part II of the CPA Canada Handbook – Accounting. The framework most Canadian private companies use. More →
Audit
An engagement under Canadian Auditing Standards in which the auditor obtains reasonable assurance and gives an opinion on whether the statements are presented fairly. More →
Balance sheet
The statement of financial position: assets, liabilities and equity on a single date. More →
Basis of accounting
The rules the statements were prepared under, such as ASPE, IFRS, cash or tax basis. Compiled statements must describe it in a note.
Cash flow statement
The statement explaining the change in cash through operating, investing and financing activities. More →
Compilation engagement
An engagement under CSRS 4200 in which an accountant helps assemble financial information and gives no assurance. Replaced the Notice to Reader. More →
Contingency
A possible obligation that depends on a future event, such as the outcome of a lawsuit. Disclosed in the notes.
Contributions (condo)
The amounts owners pay the condominium corporation, commonly called condo fees.
Covenant
A promise in a loan agreement, such as keeping a ratio above a stated level. A breach can let the lender demand repayment. More →
Current ratio
Current assets divided by current liabilities. More →
Deferred contributions
Money received for a specific purpose and not yet used, such as an unspent special levy. Shown as a liability.
Depreciating property
In Alberta condominium law, the property a reserve fund study inventories for repair and replacement. More →
Estoppel certificate
A certificate from an Alberta condominium corporation stating a unit’s contribution, its frequency, arrears and interest. Conclusive proof of those amounts as of its date (Act s. 43.2). More →
GAAP
Generally accepted accounting principles. In Canada, the frameworks in the CPA Canada Handbook.
GIFI
The General Index of Financial Information: the CRA’s coded format for financial statement information filed with a T2 return.
Going concern
The assumption that an organisation will keep operating. Doubt about it must be disclosed and is a serious warning.
IFRS
International Financial Reporting Standards, Part I of the CPA Canada Handbook. Required for publicly accountable enterprises. More →
Income statement
The statement of operations: revenue and expenses over a period, ending in net income. More →
Information statement
A statement an Alberta condominium corporation provides on request, covering lawsuits, judgments, the reserve fund balance, known structural deficiencies, loans and unit factors (Regulation s. 20.52). More →
Notice to Reader
The former no-assurance report under Section 9200. Replaced by the compilation engagement report for periods ending on or after December 14, 2021. More →
Operating fund
In condominium statements, the fund for recurring costs such as insurance, utilities and management. More →
Reserve fund
In Alberta, the capital replacement reserve fund a condominium corporation must keep for major repairs and replacements (Act s. 38). More →
Reserve fund plan
The board’s approved plan for funding the reserve, based on the reserve fund report (Regulation s. 23(4)). More →
Reserve fund report
The written report a reserve fund study provider gives the board after the study (Regulation s. 23(3)). More →
Reserve fund study
A qualified provider’s study of depreciating property, its condition, its repair and replacement costs and the funding required, over at least 30 years (Regulation s. 23). More →
Retained earnings
All profit kept in a business since it began, less dividends. Not the same as cash.
Review engagement
An engagement under CSRE 2400 giving limited assurance, mainly through inquiry and analytical procedures. More →
Special levy
An amount a condominium corporation charges owners beyond regular contributions, usually for a specific project.
Special resolution
A resolution needing a higher threshold than a simple majority. Its meaning differs by statute: under Alberta’s Business Corporations Act it is at least two-thirds of the votes cast, or signed by all shareholders entitled to vote.
Subsequent event
Something significant that happened after year-end but before the statements were approved, disclosed in the notes.
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