2026 to 2027 Future-Oriented Statement of Operations for the Canadian Food Inspection Agency (unaudited)

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© His Majesty the King in Right of Canada, as represented by the Minister of Health, 2026.

Catalogue No.: A101-33E-PDF

ISSN: 2819-0211

Aussi disponible en français.

The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Notes to the Future-Oriented Statement of Operations (unaudited)

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared based on government priorities and the Canadian Food Inspection Agency (the agency) plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2025 to 2026 is based on actual results as at December 31, 2025 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2026 to 2027. This includes reductions for the Comprehensive Expenditure Review.

The main assumptions underlying the forecasts are as follows:

• the agency's activities will remain substantially the same as in the previous year
• expenses and revenues, including the determination of amounts internal and external to the government, are based on experience
  • expenses are expected to decrease as a result of decreasing animal health compensation payments due to the avian influenza outbreak
  • the general historical pattern is expected to continue for revenue

These assumptions are made as at December 31, 2025.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2025 to 2026 and for 2026 to 2027, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, the agency has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

Factors that could lead to material differences between the Future‑Oriented Statement of Operations and the historical statement of operations include:

• the timing and the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense
• the implementation of new collective agreements
• economic conditions, which may affect the amount of revenue earned
• other changes to the operating budget, such as new initiatives, increased emergency response activities or technical adjustments later in the fiscal year
• variances associated with the agency's compensation payments for animal and plant diseases, which often significantly differ from planned amounts given the unforeseeable nature of these events

After the Departmental Plan is tabled in Parliament, the agency will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.

3. Summary of significant accounting policies

The Future-Oriented Statement of Operations has been prepared using the Government of Canada's accounting policies in effect for the 2025 to 2026 fiscal year and is based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

a) Expenses

Transfer payments are recorded as an expense in the year the transfer is authorized, and all eligibility criteria have been met by the recipient.

Other expenses are generally recorded when goods are received or services are rendered and include expenses related to personnel, professional and special services, repair and maintenance, utilities, materials and supplies, as well as amortization of tangible capital assets. Provisions to reflect changes in the value of assets or liabilities, such as provisions for bad debts, and inventory obsolescence, as well as utilization of inventories and prepaid expenses, and other are also included in other expenses.

b) Revenues

Revenues from regulatory fees without performance obligations are recognized when there is authority to claim inflows of economic resources and the past transaction or event has occurred.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

Deferred revenue consists of amounts received prior to the provision of goods or services that will be recognized as revenue in a subsequent fiscal year as the performance obligations are met.

Other revenues are recognized in the period the event giving rise to the revenues occurred and future economic benefits are expected to be received.

Revenues that are non-respendable are not available to discharge the agency's liabilities. Although the deputy head is expected to maintain accounting control, he or she has no authority over the disposition of non-respendable revenues. As a result, non‑respendable revenues are earned on behalf of the Government of Canada and are therefore presented as a reduction of the agency's gross revenues.

4. Parliamentary authorities

The agency is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the agency differs from financial reporting according to generally accepted accounting principles because authorities are based mainly on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the agency has different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables: