Future-oriented Statements 2023-2024

Copyright Board of Canada

Future-Oriented Statement of Operations (Unaudited)
For the year ended March 31

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

Copyright Board of Canada
Notes to the Future-Oriented Statement of Operations (Unaudited)
At March 31

1. Authority and Objectives

The Copyright Board of Canada (the “Board”) is an independent administrative agency which has been conferred department status for purposes of the Financial Administration Act. Its mandate stems from the Copyright Act.

The Board plays a major role in the collective administration of copyright, particularly where the public performance and the communication to the public, by telecommunication, of musical works, as well as the retransmission of distant radio and television signals are concerned. The Board plays a surveillance role in three ways with respect to collective societies which administer very large repertoires of work created by a multitude of originators both in Canada and in other countries: as an economic regulatory body, by approving tariff proposals by the various copyright collective societies; as an arbitrator in private disputes; and as an arbitrator of the public interest.

The Board’s principal mandate is to set royalties which are fair and reasonable for both copyright owners and the users of copyright-protected works, as well as issuing non-exclusive licences authorizing the fully legal use of works when the copyright owner cannot be located.

The Board reports annually to Parliament through the Minister of Innovation, Science and Economic Development.

2. Methodology and Significant Assumptions

The Future-Oriented Statement of Operations has been prepared on the basis of the government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2022–23 is based on actual results as at December 31, 2022, and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for fiscal year 2023–24.

The main assumptions are as follows:

• The Copyright Board of Canada’s activities will remain substantially the same as for the previous year.
• Expenses, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.
• Estimated year-end information for 2022–23 is used as the opening position for 2023–24 planned results.

These assumptions are made as at December 31, 2022.

3. Variations and Changes to the Forecast Financial Information

Although every attempt has been made to forecast final results for the remainder of 2022–23 and for 2023–24, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing the Future-Oriented Statements of Operations, the Copyright Board of Canada 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 past 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:

1. The timing and the amount of acquisitions and disposals of property, plant and equipment, which may affect gains, losses and amortization expense.
2. The implementation of new collective agreements.
3. Other changes to the operating budget, such as new initiatives or technical adjustments later in the year.

After the Departmental Plan is tabled in Parliament, the Copyright Board of Canada 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.

4. 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 fiscal year 2022–23, and is based on Canadian public sector accounting standards. These accounting policies, stated below, are 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:

1. Expenses 
   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 are also included in the expenses.

5. Parliamentary Authorities

The Copyright Board of Canada is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Copyright Board of Canada 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 Copyright Board of Canada has a 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:

a) Reconciliation of net cost of operations to requested authorities

b) Authorities provided/requested