ARCHIVED — Vol. 148, No. 18 — May 3, 2014

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GOVERNMENT NOTICES

BANK OF CANADA

FINANCIAL STATEMENTS (YEAR ENDED 31 DECEMBER 2013)

FINANCIAL REPORTING RESPONSIBILITY

The accompanying financial statements of the Bank of Canada have been prepared by management in accordance with International Financial Reporting Standards and contain certain items that reflect the best estimates and judgments of management. The integrity and reliability of the data in these financial statements are management’s responsibility. Management is responsible for ensuring that all information in the Annual Report is consistent with the financial statements.

In support of its responsibility for the integrity and reliability of these financial statements and for the accounting system from which they are derived, management has developed and maintains a system of internal controls to provide reasonable assurance that transactions are properly authorized and recognized, that financial information is reliable, that the assets are safeguarded and liabilities recognized, and that the operations are carried out effectively. The Bank has an internal Audit Department whose functions include reviewing internal controls, including accounting and financial controls and their application.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal controls and exercises this responsibility through the Audit and Finance Committee of the Board. The Audit and Finance Committee is composed of members who are neither officers nor employees of the Bank and who are financially literate. The Audit and Finance Committee is therefore qualified to review the Bank’s annual financial statements and to recommend their approval by the Board of Directors. The Audit and Finance Committee meets with management, the Chief Internal Auditor, and the Bank’s independent auditors, who are appointed by order in council. The Audit and Finance Committee has established processes to evaluate the independence of the Bank’s independent auditors and oversees all services provided by them. The Audit and Finance Committee has a duty to review the adoption of, and changes in, accounting principles and procedures that have a material effect on the financial statements, and to review and assess key management judgments and estimates material to the reported financial information.

These financial statements have been audited by the Bank’s independent auditors, KPMG LLP and Deloitte LLP, and their report is presented herein. The independent auditors have full and unrestricted access to the Audit and Finance Committee to discuss their audit and related findings.

Ottawa, Canada, 13 February 2014

STEPHEN S. POLOZ
Governor

S. VOKEY, CPA, CA
Chief Financial Officer and Chief Accountant

INDEPENDENT AUDITORS’ REPORT

To the Minister of Finance, registered shareholder of the Bank of Canada (the “Bank”)

We have audited the accompanying financial statements of the Bank, which comprise the statement of financial position as at 31 December 2013 and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform an audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Bank as at 31 December 2013 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Ottawa, Canada, 13 February 2014

KPMG LLP
Chartered Professional Accountants
Licensed Public Accountants

DELOITTE LLP
Chartered Professional Accountants
Licensed Public Accountants

BANK OF CANADA

Statement of financial position (Millions of Canadian dollars)

31 December 2013

As at 31 December 2012

ASSETS    
Cash and foreign deposits (note 4) 5.0 6.8
Loans and receivables    
Securities purchased under resale agreements (note 5a) 2,205.9 1,838.3
Advances to members of the Canadian Payments Association (note 5b) - 61.8
Other receivables 9.0 5.5
2,214.9 1,905.6
Investments (notes 6, 7)    
Government of Canada treasury bills 21,586.4 18,987.3
Government of Canada bonds 66,653.6 56,277.3
Other investments 337.1 342.7
88,577.1 75,607.3
Property and equipment (note 8) 232.4 190.4
Intangible assets (note 9) 52.2 55.6
Other assets (note 10) 224.1 41.6
Total assets 91,305.7 77,807.3
LIABILITIES AND EQUITY    
Bank notes in circulation (notes 7, 11) 66,615.9 63,700.0
Deposits (notes 7, 12)    
Government of Canada 22,329.9 11,701.5
Members of the Canadian Payments Association 186.7 186.4
Other deposits 1,306.9 1,403.4
23,823.5 13,291.3
Other liabilities (note 13) 431.1 377.5
90,870.5 77,368.8
Equity (note 15) 435.2 438.5
Total liabilities and equity 91,305.7 77,807.3

Commitments, contingencies and guarantees (note 17)

STEPHEN S. POLOZ
Governor

PHILIP DECK
Lead Director
Board of Directors

S. VOKEY, CPA, CA
Chief Financial Officer and
Chief Accountant

PHYLLIS CLARK
Chair
Audit and Finance Committee

(See accompanying notes to the financial statements.)

BANK OF CANADA

Statement of comprehensive income (Millions of Canadian dollars)

For the year ended 31 December

2013

2012

 

(restated — note 3)

INCOME    
Net interest income    
Interest revenue    
Interest earned on investments 1,770.7 1,646.1
Dividend revenue 4.7 4.4
Interest earned on securities purchased under resale agreements 3.8 2.3
Other interest revenue 0.3 0.3
1,779.5 1,653.1
Interest expense    
Interest expense on deposits (210.6) (87.8)
1,568.9 1,565.3
Other revenue 11.1 10.1
Total income 1,580.0 1,575.4
EXPENSES    
Staff costs 213.6 191.4
Bank note research, production and processing 158.8 123.4
Premises costs 38.3 40.8
Technology and telecommunications 42.1 33.4
Depreciation and amortization 46.2 23.8
Other operating expenses 75.0 78.5
Total expenses 574.0 491.3
NET INCOME 1,006.0 1,084.1
OTHER COMPREHENSIVE INCOME (LOSS)    
Items that will not be reclassified to net income    
Remeasurements of the net defined-benefit liability/asset 224.7 (61.9)
Items that may subsequently be reclassified to net income    
Change in the fair value of available-for-sale financial assets (3.3) 13.9
Other comprehensive income (loss) 221.4 (48.0)
COMPREHENSIVE INCOME 1,227.4 1,036.1

(See accompanying notes to the financial statements.)

BANK OF CANADA

Statement of changes in equity (Millions of Canadian dollars)

Share capital Statutory reserve Special reserve Available-for-sale reserve For the year ended 31 December
Remeasurements reserve Retained earnings Total
Balance, 1 January 2013 5.0 25.0 100.0 308.5 - - 438.5
Comprehensive income for the year              
Net income - - - - - 1,006.0 1,006.0
Remeasurements of the net defined-benefit liability/asset - - - - - 224.7 224.7
Change in the fair value of available-for-sale financial assets - - - (3.3) - - (3.3)
- - - (3.3) - 1,230.7 1,227.4
Transfer to Receiver General for Canada - - - - - (1,230.7) (1,230.7)
Balance, 31 December 2013 5.0 25.0 100.0 305.2 - - 435.2
Balance, 1 January 2012 5.0 25.0 100.0 294.6 - - 424.6
Comprehensive income for the year              
Net income (restated — note 3n) - - - - - 1,084.1 1,084.1
Remeasurements of the net defined-benefit liability/asset (restated — note 3n) - - - - - (61.9) (61.9)
Change in the fair value of available-for-sale financial assets - - - 13.9 - - 13.9
- - - 13.9 - 1,022.2 1,036.1
Transfer to Receiver General for Canada - - - - - (1,022.2) (1,022.2)
Balance, 31 December 2012 5.0 25.0 100.0 308.5 - - 438.5

(See accompanying notes to the financial statements.)

BANK OF CANADA

Statement of cash flows (Millions of Canadian dollars)

For the year ended 31 December
2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Interest received (restated note 19) 1,817.0 1,686.5
Dividends received 4.7 4.4
Other revenue received 7.3 6.1
Interest paid (210.6) (87.8)
Payments to or on behalf of employees/suppliers and to Canadian Payments Association members (515.7) (450.9)
Net increase in advances to members of the Canadian Payments Association 61.8 19.7
Net increase in deposits 10,532.2 10,810.3
Proceeds from maturity of securities purchased under resale agreements 57,969.7 40,109.3
Acquisition of securities purchased under resale agreements (58,337.3) (40,500.2)
Repayments of securities sold under repurchase agreements (3,653.9) -
Proceeds from securities sold under repurchase agreements 3,653.9 -
Net cash provided by operating activities 11,329.1 11,597.4
CASH FLOWS FROM INVESTING ACTIVITIES    
Net increase in Government of Canada treasury bills (2,582.0) (449.8)
Purchases of Government of Canada bonds (18,213.5) (17,766.7)
Proceeds from maturity of Government of Canada bonds (restated note 19) 7,780.0 5,010.0
Additions of property and equipment (66.3) (31.2)
Additions of intangible assets (6.0) (17.5)
Net cash used in investing activities (13,087.8) (13,255.2)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase in bank notes in circulation 2,915.9 2,671.2
Remittance of ascertained surplus to the Receiver General for Canada (1,159.2) (1,018.4)
Net cash provided by financing activities 1,756.7 1,652.8
EFFECT OF EXCHANGE RATE CHANGES ON FOREIGN CURRENCY 0.2 0.1
DECREASE IN CASH AND FOREIGN DEPOSITS (1.8) (4.9)
CASH AND FOREIGN DEPOSITS, BEGINNING OF YEAR 6.8 11.7
CASH AND FOREIGN DEPOSITS, END OF YEAR 5.0 6.8

(See accompanying notes to the financial statements.)

BANK OF CANADA

Notes to the financial statements
For the year ended 31 December 2013

(Amounts in the notes to the financial statements of the Bank of Canada are in millions of Canadian dollars, unless otherwise stated.)

1. The business of the Bank of Canada

The Bank of Canada (the Bank) is the nation’s central bank. The Bank is a corporation under the Bank of Canada Act, is wholly owned by the Government of Canada and is exempt from income taxes. The Bank is a Government Business Enterprise as defined by the Public Sector Accounting Board Handbook and, as such, adheres to the standards applicable to publicly accountable enterprises as outlined by the Canadian Institute of Chartered Accountants (CICA).

The responsibilities of the Bank focus on the goals of low and stable inflation, financial system stability, a safe and secure currency, and the efficient management of government funds and public debt. These responsibilities are carried out as part of the broad functions described below.

  • Monetary policy
  • Contributes to solid economic performance and rising living standards for Canadians by keeping inflation low, stable and predictable.
  • Financial system
  • Promotes the stability and efficiency of Canada’s financial system, both within Canada and globally.
  • Currency
  • Designs, produces and distributes Canada’s bank notes and replaces worn notes. The Bank deters counterfeiting through leading-edge bank note design, public education and collaboration with law enforcement agencies.
  • Funds management
  • Provides effective and efficient funds-management services for the Government of Canada, and administers and advises on the public debt and foreign exchange reserves. In addition, the Bank provides banking services to foreign central banks, as well as to critical payment clearing and settlement systems.
2. Basis of preparation

Compliance with International Financial Reporting Standards (IFRS)

These financial statements have been prepared in accordance with IFRS and conform to the disclosure and accounting requirements of the Bank of Canada Act and the Bank’s bylaws.

The Board of Directors approved the financial statements on 13 February 2014.

Measurement base

The financial statements have been prepared on the historical cost basis, except for the available-for-sale (AFS) financial assets, which are measured at fair value, and the net defined-benefit liability/asset of employee benefit plans, which is recognized as the net of the fair value of plan assets and the present value of the defined-benefit obligation.

Significant accounting estimates and judgments in applying accounting policies

The preparation of the financial statements requires management to make judgments, estimates and assumptions based on information available at the statement date that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, as well as related information. Actual results could differ from these estimates. In such cases, the impact will be recognized in the financial statements of a future fiscal period.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant estimates are primarily in the area of employee benefit plans (note 14) and the fair values of certain financial instruments and collateral taken (note 7).

Functional and presentation currency

The Bank’s functional and presentation currency is the Canadian dollar.

Fiscal-agent and custodial activities

Responsibility for the operational management of the Government of Canada’s financial assets and liabilities is borne jointly by the Bank (as fiscal agent for the Government) and the Department of Finance. In this fiscal-agent role, the Bank provides transactional and administrative support to the Government of Canada in certain areas. The assets, liabilities, expenditures and revenues to which this support relates are those of the Government of Canada and are not included in the financial statements of the Bank.

Securities safekeeping and gold custodial activities are provided to foreign central banks and international organizations. The assets, and income arising therefrom, are excluded from these financial statements, since they are not assets or income of the Bank.

3. Significant accounting policies

The significant accounting policies of the Bank are summarized below. These policies have been consistently applied to all years presented, unless otherwise stated.

(a) Translation of foreign currencies

Investment income and expenses denominated in foreign currencies are translated at the exchange rate in effect at the date of the transaction. Fair-value items denominated in foreign currencies are translated at the exchange rate in effect at the date of the fair-value measurement. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the rates of exchange prevailing at the end of the reporting period. The resulting gains and losses are included in Other revenue. Gains or losses on equity investments classified as available for sale (AFS), along with any exchange-related gains or losses, are recognized in the available-for-sale reserve within Other Comprehensive Income.

(b) Financial instruments

The Bank accounts for all financial instruments using settlement-date accounting. Financial instruments are measured at fair value on initial recognition, plus transaction costs, if any, for all financial assets not carried at fair value through net income. Subsequent to initial recognition, they are accounted for based on their classification.

Subsequent to initial recognition, financial assets classified as AFS are measured at fair value using quoted market prices, with the exception of the Bank for International Settlements (BIS) shares, which are measured using significant non-observable inputs. Unrealized changes in the values of AFS financial assets measured at fair value are recognized in Other Comprehensive Income and accumulated in the available-for-sale reserve in equity until the financial asset is derecognized or becomes impaired. At that time, the cumulative unrealized gain or loss previously recognized in Other Comprehensive Income is reclassified from equity to net income. The Bank’s financial assets designated as AFS consist of Government of Canada treasury bills and other investments, which include BIS shares.

Financial assets that the Bank has the intent and ability to hold to maturity are classified as held-to-maturity (HTM). Subsequent to initial recognition, financial assets classified as HTM are measured at amortized cost using the effective interest method less any impairment losses. The effective interest method uses the rate inherent in a financial instrument that discounts the estimated future cash flows over the expected life of the financial instrument so as to recognize interest on a constant-yield basis. Government of Canada bonds are classified as HTM.

The Bank has not classified any of its financial assets as fair value through net income, other than cash and foreign deposits.

All other financial assets are classified as loans and receivables. Subsequent to initial recognition, these are measured at amortized cost less any impairment losses using the effective interest method of amortization.

The Bank derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire. On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in net income.

The Bank has classified its financial liabilities as other liabilities. These liabilities are initially recognized at fair value. Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method, with the exception of bank notes in circulation, which are measured at face value. The Bank has not classified any of its financial liabilities as fair value through net income.

The Bank derecognizes financial liabilities when the Bank’s obligations are discharged, cancelled or expire. The difference between the carrying amount of the financial liability derecognized and the sum of the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in net income.

(c) Securities purchased under resale agreements

Securities purchased under resale agreements are reverse repo-type transactions in which the Bank purchases securities from designated counterparties with an agreement to sell them back at a predetermined price on an agreed transaction date. For accounting purposes, these agreements are treated as collateralized lending transactions and are recognized on the Statement of Financial Position at the amounts at which the securities were originally acquired, plus accrued interest.

(d) Securities sold under repurchase agreements

Securities sold under repurchase agreements are repo-type transactions in which the Bank sells Government of Canada securities to designated counterparties with an agreement to buy them back at a predetermined price on an agreed transaction date. For accounting purposes, these agreements are treated as collateralized borrowing transactions and are recognized on the Statement of Financial Position at the amounts at which the securities were originally sold, plus accrued interest.

(e) Securities Lending Program

The Bank operates a Securities Lending Program to support the liquidity of Government of Canada securities by providing the market with a secondary and temporary source of these securities. These securities-lending transactions are fully collateralized by securities and are generally one business day in duration. The securities loaned continue to be accounted for as investment assets. Lending fees charged by the Bank on these transactions are included in Other revenue at the maturity date of the transaction.

(f) Property and equipment

Property and equipment consists of land, buildings, computer equipment, other equipment and related projects in progress. Property and equipment is measured at cost less accumulated depreciation, except for land, which is not depreciated, and is net of any related impairment losses. Projects in progress are measured at cost but are not depreciated until the asset is available for use. Cost includes expenditures that are directly attributable to the acquisition or construction of the asset.

When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Upon replacing a significant part of an item of property and equipment, the carrying amount of the replaced part is derecognized.

Depreciation is calculated using the straight-line method and is applied over the estimated useful lives of the assets, as shown below. The estimated useful life and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Buildings 25 to 65 years
Computer equipment 3 to 7 years
Other equipment 5 to 15 years

Leasehold improvements (included in Other equipment) are depreciated over the lesser of: the useful life or the term of the lease.

(g) Intangible assets

Intangible assets are identifiable non-monetary assets without physical substance. The Bank’s intangible assets consist of computer software internally developed or externally acquired.

Costs that are directly associated with the internal development of identifiable software are recognized as intangible assets if, in management’s best estimate, the asset can technically be completed and will provide a future economic benefit to the Bank. Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates.

Computer software assets that are acquired by the Bank and have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses.

Amortization is calculated using the straight-line method and is applied over the estimated useful lives of the assets, which may vary from 3 to 15 years. The estimated useful life and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

(h) Bank note inventory

Bank note inventory consists of production materials, including polymer substrate and ink, and is measured at the lower of: the cost or the net realizable value. The cost to produce finished bank notes is expensed as incurred.

(i) Leases

Where the Bank is a lessee

Leases of equipment where the Bank has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s inception at the lower of: the fair value of the leased asset or the present value of the minimum lease payments. The corresponding lease obligations, net of finance charges, are included in Other liabilities. Each lease payment is allocated between the liability and finance charges to achieve a constant rate of return on the finance lease obligation outstanding. Equipment acquired under finance leases is depreciated over the shorter of the asset’s useful life or the lease term.

Other leases are classified as operating leases. Payments made under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the period of the lease.

Where the Bank is a lessor

Leases granted on the Bank’s property were assessed and classified as operating leases, because the risks and rewards of ownership are not transferred to the lessees. Operating lease income is recognized on a straight-line basis over the period of the lease.

(j) Impairment

Impairment of financial assets

For financial assets that are not classified as fair value through net income, the Bank assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of assets is impaired. Once impaired, financial assets carried at amortized cost are remeasured at the net recoverable amount, with the amount of impairment recognized in net income. Unrealized losses on impaired AFS financial assets are recognized in net income at the time of impairment.

Impairment of non-financial assets

Non-financial assets, including property and equipment, and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount exceeds its recoverable amount.

Intangible assets under development are assessed for impairment on an annual basis.

(k) Employee benefits

Short-term employee benefits

Short-term employee benefits include cash salary, bonus, annual leave, health benefits, dental care and statutory benefits and are measured on an undiscounted basis.

Long-term employee benefits

The Bank sponsors a long-term disability program.

The liability recognized in respect of this plan amounts to the present value of the defined-benefit obligation. The present value of the defined-benefit obligation is calculated by discounting estimated future cash flows using interest rates on high-quality corporate bonds with terms to maturity approximating the estimated duration of the obligation. The expense recognized for the period-end consists of current service costs, interest costs, remeasurement gains and losses, and past service costs.

The current service costs and the benefit obligations of the plan are actuarially determined on an event-driven accounting basis. Remeasurement gains and losses, as well as past service costs arising from plan amendments, are recognized immediately on the Statement of Comprehensive Income in the period in which they occur.

Post-employment defined-benefit plans

The Bank sponsors a funded defined-benefit pension plan (the Bank of Canada Registered Pension Plan) and a funded defined-benefit supplementary pension arrangement (the Bank of Canada Supplementary Pension Arrangement), which are designed to provide retirement income benefits to eligible employees.

The Bank also sponsors other unfunded post-employment defined-benefit plans, which include life insurance and eligible health and dental benefits, as well as a long-service benefit program for employees hired before 1 January 2003.

The net asset or liability of these plans is recognized on the Statement of Financial Position. The net asset or liability recognized at period-end in respect of these plans is composed of the present value of the defined-benefit obligation less the fair value of plan assets, where applicable. The present value of the defined-benefit obligation is calculated by discounting estimated future cash flows using interest rates on high-quality corporate bonds with terms to maturity approximating the estimated duration of the obligation. The expense recognized for the reporting period consists of current service costs, past service costs, net interest on the net defined-benefit liability/asset, gains or losses arising on settlement (if applicable) and administrative costs. Net interest is calculated by applying the discount rate to the net defined-benefit liability/asset.

The current service costs and the benefit obligations of the plans are actuarially determined using the projected unit credit method. Remeasurements comprise actuarial gains and losses, the return on plan assets, and the effect of the asset ceiling (if applicable). They exclude amounts included in net interest on the net defined-benefit liability/asset. Remeasurements are recognized immediately in Other Comprehensive Income in the period in which they occur. Past service costs are recognized at the earlier of: when the plan amendment or curtailment occurs, or when the entity recognizes related restructuring costs or termination benefits. Plan assets of funded benefit plans are determined according to their fair value at the end of the reporting period.

Termination benefits

A liability for termination benefits is recognized at the earlier of: when the entity can no longer withdraw the offer of the termination benefit or when the entity recognizes any related restructuring costs.

(l) Provisions

A provision is recognized if, as a result of a past event, the Bank has a present legal or constructive obligation that can be estimated reliably as at the statement of financial position date, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are included under Other liabilities (note 13).

(m) Revenue recognition

  • Interest revenue earned on Government of Canada treasury bills and bonds is recognized in net income using the effective interest method. Dividend revenue on the BIS shares is recognized as dividends are declared.
  • Realized gains (losses) on the sale of Government of Canada treasury bills are recognized at the time of sale as a reclassification from Other Comprehensive Income and are calculated as the excess of proceeds over the amortized cost at the transaction date.
  • Interest earned on securities purchased under resale agreements is recognized using the effective interest method.
  • Other revenue is composed mostly of interest earned on advances to members of the Canadian Payments Association (CPA) and is recognized using the effective interest method.

(n) Changes in accounting policies

Effective 1 January 2013, the Bank adopted the following new and amended standards:

IAS 19 Employee Benefits

The amendments to IAS 19 require the following:

  • immediate recognition in Other Comprehensive Income of actuarial gains and losses, and the return on plan assets, excluding amounts included in net interest on the net defined-benefit liability/asset;
  • immediate full recognition of past service costs in profit or loss;
  • recognition of the expected return on plan assets in profit or loss, to be calculated based on the rate used to discount the defined-benefit obligation;
  • recognition of termination benefits at the earlier of: when the entity recognizes costs for a restructuring within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or when the entity can no longer withdraw the offer of the termination benefits; and
  • additional disclosures that explain the characteristics of the entity’s defined-benefit plans and risks associated with the plans: disclosures that describe how defined-benefit plans may affect the amount, timing and uncertainty of future cash flows, and details of any strategies for asset-liability matching used to manage risks.

The amendments to IAS 19 have been applied retrospectively. The net impact of the changes on previously reported financial information is summarized as follows:

  Year ended 31 December 2012
Statement of comprehensive income  
Increase in staff costs ― benefit plan expenses (15.7)
Decrease in remeasurements of the net defined-benefit liability/asset 15.7

IFRS 11 Joint Arrangements

IFRS 11 provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form. The standard addresses inconsistencies in the reporting of joint arrangements by requiring a single method to account for interests in jointly controlled entities.

There was no material impact on the financial statements as a result of the retrospective adoption of IFRS 11.

IFRS 12 Disclosure of Interests in Other Entities

IFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities.

There was no material impact on the financial statements as a result of the retrospective adoption of IFRS 12.

IFRS 13 Fair Value Measurement

IFRS 13 defines fair value, sets out in a single IFRS a framework for measuring fair value and requires disclosures about fair-value measurements. Disclosures are provided in note 7.

There was no material impact on the financial statements as a result of the retrospective adoption of IFRS 13.

IFRS 7 Financial Instruments: Disclosures and IAS 32 Financial Instruments: Presentation

The amendments to IFRS 7 and IAS 32 provide additional accounting requirements and disclosures related to the offsetting of financial assets and financial liabilities. The new disclosures under IFRS 7 are effective for annual and interim financial statements for periods beginning on or after 1 January 2013. The clarifying amendments to IAS 32 are effective for annual periods beginning on or after 1 January 2014, but were early adopted as at 1 January 2013.

There was no material impact on the financial statements as a result of the retrospective adoption of the amendments to IFRS 7 and IAS 32.

IAS 1 Presentation of Financial Statements

The amendment to IAS 1 clarifies the difference between voluntary additional comparative information and the minimum required comparative information. An entity must include comparative information in the related notes to the financial statements when it voluntarily provides comparative information beyond the minimum required comparative period. The additional voluntary comparative information does not need to be presented in a complete set of financial statements.

An opening statement of financial position (known as the third balance sheet) must be presented when an entity applies an accounting policy retrospectively, makes retrospective restatements or reclassifies items in its financial statements, provided any of those changes has a material effect on the statement of financial position at the beginning of the preceding period. The amendment clarifies that a third balance sheet does not have to be accompanied by comparative information in the related notes.

There was no material impact on the financial statements as a result of the retrospective adoption of IAS 1.

(o) Future changes in accounting policies

The following new standard issued by the International Accounting Standards Board (IASB) has been assessed as having a possible effect on the Bank in the future. The Bank is currently determining the impact of this standard on its financial statements.

IFRS 9 Financial Instruments

IFRS 9, as issued in November 2009 and revised in October 2010, and the related consequential amendments will replace International Accounting Standard 39 Financial Instruments: Recognition and Measurement (IAS 39). IFRS 9 relates to the recognition and derecognition and measurement of financial assets and financial liabilities.

IFRS 9 eliminates the existing financial asset categories and requires all financial assets to be classified on initial recognition, either at amortized cost or at fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Gains and losses on financial assets measured at fair value will be recognized through net income, with the exception of equity investments not held for trading, which the Bank elects on initial recognition to have gains or losses recognized directly in equity.

The new standard also requires the use of a single impairment method for financial assets based on expected losses and incurred losses, replacing the multiple impairment methods in IAS 39.

IFRS 9 requires all financial liabilities not designated at fair value through net income to be subsequently measured at amortized cost using the effective interest method.

The IASB has not set a mandatory effective date for IFRS 9, although early adoption is permitted. The Bank is currently evaluating the impact of IFRS 9 on its financial statements, and will continue to do so as the remaining stages of this project are finalized.

4. Cash and foreign deposits

Cash and foreign deposits is composed of cash on hand as well as highly liquid demand deposits in foreign currencies with other central banks or international financial institutions. Included in this balance is CAN$4.6 million (CAN$6.7 million at 31 December 2012) of foreign deposits.

5. Loans and receivables

Loans and receivables are composed primarily of securities purchased under resale agreements and, if any, advances to members of the CPA. These transactions are fully collateralized in accordance with publicly disclosed collateral eligibility and margin requirements. Financial risks related to these instruments are discussed in note 7.

(a) Securities purchased under resale agreements

Securities purchased under resale agreements for terms of one business day are acquired to reinforce the target overnight interest rate. Securities are acquired through buyback transactions with primary dealers where the counterparties may accept an amount up to their pre-specified limit.

Securities purchased under resale agreements for terms of longer than one business day are acquired through an auction process. Details of these auctions are announced by the Bank in advance. Bids are submitted on a yield basis, and funds are allocated in descending order of bid yields.

Balances outstanding at 31 December 2013 consist of agreements with original terms to maturity of 21 days. (Balances outstanding at 31 December 2012 consist of agreements with original terms to maturity ranging from 23 to 24 days.)

(b) Advances to members of the Canadian Payments Association

Advances to members of the CPA are typically composed of liquidity loans made under the Bank’s Standing Liquidity Facility. These advances mature the next business day. Interest on overnight advances is calculated at the Bank Rate. The Bank Rate is the rate of interest that the Bank charges on one-day loans to major financial institutions.

6. Investments

The Bank operates a Securities Lending Program to support the liquidity of Government of Canada securities by providing the market with a secondary and temporary source of these securities. At 31 December 2013, the Bank’s investments included loaned securities with a fair market value of $129.7 million ($Nil at 31 December 2012) and an amortized cost of $119.5 million ($Nil at 31 December 2012). Collateral held against investments loaned under securities lending at the end of the reporting period was in the form of securities issued or guaranteed by the Government of Canada. The fair value of collateral held totalled $133.0 million, representing 102 per cent of the fair market value of the securities loaned.

In Other investments, the Bank holds 9 441 BIS shares (9 441 BIS shares at 31 December 2012) in order to participate in the BIS. Ownership of the BIS shares is limited to central banks, and new shares can only be acquired following an invitation to subscribe extended by the BIS Board of Directors. The shares are nontransferable unless prior written consent is obtained from the BIS.

7. Financial instruments and risk management

The Bank’s financial instruments consist of cash and foreign deposits, securities purchased under resale agreements, advances to members of the CPA, other receivables, investments (consisting of Government of Canada treasury bills, Government of Canada bonds and shares in the BIS), bank notes in circulation, deposits and other liabilities (excluding the net defined-benefit liability for pension benefit plans and other employee benefit plans).

Cash and foreign deposits, Government of Canada treasury bills, and BIS shares are measured at fair value. All other financial instruments are measured at amortized cost using the effective interest method, with the exception of bank notes in circulation, which are measured at face value.

(a) Fair value of financial instruments

(i) Carrying amount and fair value of financial instruments

The carrying amount and fair value of financial assets and liabilities are presented in the following table:

31 December 2013 31 December 2012
Carrying amount Fair value Carrying amount Fair value
Financial assets        
Cash and foreign deposits 5.0 5.0 6.8 6.8
Securities purchased under resale agreements 2,205.9 2,205.9 1,838.3 1,838.3
Advances to members of the Canadian Payments Association - - 61.8 61.8
Other receivables 9.0 9.0 5.5 5.5
Government of Canada treasury bills 21,586.4 21,586.4 18,987.3 18,987.3
Government of Canada bonds
(see note 1)
66,653.6 68,622.2 56,277.3 61,120.7
Other investments 337.1 337.1 342.7 342.7
Total financial assets 90,797.0 92,765.6 77,519.7 82,363.1
Financial liabilities        
Bank notes in circulation 66,615.9 66,615.9 63,700.0 63,700.0
Deposits 23,823.5 23,823.5 13,291.3 13,291.3
Other financial liabilities 254.4 254.4 174.6 174.6
Total financial liabilities 90,693.8 90,693.8 77,165.9 77,165.9

Note 1
The carrying amounts and fair value of Government of Canada bonds include accrued interest. The fair value of Government of Canada bonds as of 31 December 2012 has been restated to include accrued interest of $238.9 million.

  • (ii) Financial instruments measured at fair value

Financial instruments measured at fair value are classified using a fair-value hierarchy that reflects the significance of the inputs used in making the measurements:

  • Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities;
  • Level 2 — inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
  • Level 3 — inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair-value hierarchy requires the use of observable market inputs wherever such inputs exist. In measuring fair value, a financial instrument is classified at the lowest level of the hierarchy for which a significant input has been considered.

Level 1 Level 2 Level 3 Total

Financial assets at fair value as at 31 December 2013

Cash and foreign deposits 5.0 - - 5.0
Government of Canada treasury bills 21,586.4 - - 21,586.4
BIS shares - - 337.1 337.1
21,591.4 - 337.1 21,928.5

Financial assets at fair value as at 31 December 2012

Cash and foreign deposits 6.8 - - 6.8
Government of Canada treasury bills 18,987.3 - - 18,987.3
BIS shares - - 342.7 342.7
18,994.1 - 342.7 19,336.8

There were no transfers of amounts between levels in 2013.

The fair value of the BIS shares is estimated to be 70 per cent of the Bank’s interest in the net asset value (NAV) of the BIS at the reporting date. This formula is equivalent to the methodology applied by the BIS to determine the pricing of any new shares issued. While the Bank considers that the 30 per cent discount against the net asset value of the BIS continues to be the appropriate basis for valuation, the valuation inputs are not considered to be observable, and a 5 per cent change in the discount to the NAV would not have a material impact on the fair value of the BIS shares. There were no changes to the valuation technique during the year.

The following table reconciles the estimated fair value of the BIS shares determined using Level 3 fair-value measurements:

31 December 2013 31 December 2012
Opening balance at beginning of year 342.7 325.3
Change in fair value recognized through Other Comprehensive Income (5.6) 17.4
Closing balance at end of year 337.1 342.7

(iii) Financial instruments not measured at fair value

Fair values of securities purchased under resale agreements are determined using market yields to maturity for similar instruments available at the date of the Statement of Financial Position.

Fair values of Government of Canada bonds are determined based on unadjusted quoted market prices in an active market.

The carrying amount of advances to members of the CPA, other receivables, deposits, and other financial liabilities (which are composed of other liabilities, excluding the portion representing the net defined-benefit liability, as described in note 14) approximates fair value, given the short-term nature. The face value of bank notes in circulation is equal to their fair value.

(b) Financial risk

The Bank has a well-established framework for identifying, managing and monitoring pertinent areas of risk. This framework is supported by the Board of Directors, which ensures that the Bank has a robust risk-management process in place. The Bank is exposed to financial risk (credit risk, market risk and liquidity risk) associated with the management of the Bank’s financial assets and liabilities. The Financial Risk Office, which is independent of operations, monitors and reports on the financial risks relating to the Bank’s balance sheet. The following is a description of those risks and how the Bank manages its exposure to them.

(i) Credit risk

Credit risk is the risk that a counterparty to a financial contract will fail to discharge its obligations in accordance with agreed-upon terms.

The Bank is exposed to credit risk through its cash and foreign deposits, investment portfolio, and advances to members of the CPA, and through market transactions conducted in the form of securities purchased under resale agreements and loans of securities. The maximum exposure to credit risk is estimated to be the carrying value of the items listed above. There are no past due or impaired amounts.

Advances to members of the CPA, securities purchased under resale agreements and securities loaned are fully collateralized loans. Collateral is taken in accordance with the Bank’s publicly disclosed eligibility criteria and margin requirements, which are accessible on its Web site. Strict eligibility criteria are set for all collateral, and the Bank requires excess collateral relative to the size of the loan provided.

In the unlikely event of a counterparty default, collateral can be liquidated to offset credit exposure. The credit quality of collateral is managed through a set of restrictions based on asset type, term to maturity and the credit ratings of the securities pledged.

Concentration of credit risk

The credit risk associated with the Bank’s investment portfolio, representing 97 per cent of the carrying value of its total assets (97 per cent in 2012), is low because the securities held are primarily direct obligations of the Government of Canada, which holds a credit rating of AAA. The Bank’s advances to members of the CPA and securities purchased under resale agreements, representing 2 per cent of the carrying value of its total assets (2 per cent in 2012), are collateralized obligations of various Canadian-based financial institutions.

Collateral held against securities purchased under resale agreements at the end of the reporting period was in the form of securities issued or guaranteed by the Government of Canada. The fair value of collateral held totalled $2,250.6 million, representing 102 per cent of the amortized cost of $2,205.9 million ($1,864.0 million, representing 101 per cent of the amortized cost at 31 December 2012).

Large Value Transfer System (LVTS) guarantee

The Bank is exposed to credit risk through its guarantee of the LVTS. The maximum exposure under this guarantee is described in note 17, Commitments, contingencies and guarantees.

(ii) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Bank’s investment in Government of Canada treasury bills and bonds counteracts the non-interest-bearing bank notes in circulation liability and supports the Bank’s operational independence to conduct monetary policy. These assets are acquired in proportions that broadly resemble the structure of the Government of Canada’s domestic debt outstanding in order to reduce interest rate risk from the perspective of the Government of Canada.

The Bank’s exposure to fair-value interest rate risk arises principally through its investment in Government of Canada treasury bills, which are short-term in duration, and Government of Canada bonds. The fair value of the Government of Canada treasury bills portfolio held by the Bank is exposed to fluctuations owing to changes in market interest rates. Unrealized gains and losses on the Government of Canada treasury bill portfolio are recognized in the Available-for-sale reserve in the Equity section of the Statement of Financial Position until they mature or are sold. Government of Canada bonds are carried at amortized cost and are acquired with the intention of holding them to maturity. All other financial assets or liabilities with an interest rate component are carried at amortized cost or at face value.

The Bank’s revenue will vary over time in response to future movements in interest rates. These variations would not affect the ability of the Bank to fulfill its obligations, since its revenues greatly exceed its expenses.

The figures below show the effect at 31 December of an (increase)/decrease of 25 basis points in interest rates on the fair value of the Government of Canada treasury bill portfolio and on other comprehensive income.

  31 December 2013 31 December 2012
Government of Canada treasury bills (17.6) / 17.0 (16.2) / 15.4

The Bank’s exposure to interest rate risk in the form of fluctuations in future cash flows of existing financial instruments is limited to Government of Canada deposits, and cash and foreign deposits, since these instruments are subject to variable interest rates. The remainder of the Bank’s financial assets and liabilities have either fixed interest rates or are non-interest-bearing.

The figures below show the effect at 31 December of an increase/(decrease) of 25 basis points in interest rates on the interest expenses paid on Government of Canada deposits.

  31 December 2013 31 December 2012
Interest expense on Government of Canada deposits 51.3 / (51.3) 20.5 / (20.5)

For all financial instruments, except bank notes in circulation, the future cash flows of the Bank are dependent on the prevailing market rate of interest at the time of renewal.

The following table illustrates interest rate risk relative to future cash flows by considering the expected maturity or repricing dates of existing financial assets and liabilities.

As at 31 December 2013

  Weighted-average interest rate % Total Noninterest-sensitive 1 business day to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 years
FINANCIAL ASSETS                
Cash and foreign deposits 0.01 5.0 - 5.0 - - - -
Loans and receivables                
Advances to members of the CPA - - - - - - - -
Securities purchased under resale agreements 1.03 2,205.9 - 2,205.9 - - - -
Other receivables   9.0 9.0 - - - - -
Investments                
Government of Canada treasury bills 1.01 4,748.2 - 4,748.2 - - - -
  0.97 6,390.3 - - 6,390.3 - - -
  1.04 10,448.0 - - - 10,448.0 - -
  1.01 21,586.5            
Government of Canada bonds (see note 2) 1.75 3,489.4 - - 3,489.4 - - -
  1.92 10,216.9 - - - 10,216.9 - -
  1.86 32,040.8 - - - - 32,040.8 -
  3.62 20,906.5 - - - - - 20,906.5
  2.41 66,653.6            
Shares in the BIS   337.1 337.1 - - - - -
  90,797.1 346.1 6,959.1 9,879.7 20,664.9 32,040.8 20,906.5
FINANCIAL LIABILITIES                
Bank notes in circulation   66,615.9 66,615.9 - - - - -
Deposits                
Government of Canada 1.03 22,329.9 - 22,329.9 - - - -
Members of the CPA 0.75 186.7 - 186.7 - - - -
Other deposits                
Unclaimed balances   532.7 532.7 - - - - -
Other 1.01 774.2 - 774.2 - - - -
Other financial liabilities   254.4 254.4 - - - - -
  90,693.8 67,403.0 23,290.8 - - - -
Interest rate sensitivity gap   103.3 (67,056.9) (16,331.7) 9,879.7 20,664.9 32,040.8 20,906.5

Note 2
Carrying amounts of Government of Canada bonds include accrued interest.

As at 31 December 2012

  Weighted-average interest rate % Total Noninterest-sensitive 1 business day to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 years
FINANCIAL ASSETS                
Cash and foreign deposits 0.14 6.8 - 6.8 - - - -
Loans and receivables                
Advances to members of the CPA 1.25 61.8 - 61.8 - - - -
Securities purchased under resale agreements 1.03 1,838.3 - 1,838.3 - - - -
Other receivables   5.5 5.5 - - - - -
Investments                
Government of Canada treasury bills 0.99 3,049.2 - 3,049.2 - - - -
  1.02 7,039.2 - - 7,039.2 - - -
  1.09 8,898.9 - - - 8,898.9 - -
  1.05 18,987.3            
Government of Canada bonds (see note 3) 1.87 1,840.3 - - 1,840.3 - - -
  2.75 5,987.2 - - - 5,987.2 - -
  2.02 30,439.4 - - - - 30,439.4 -
  4.59 18,010.4 - - - - - 18,010.4
  2.90 56,277.3            
Shares in the BIS   342.7 342.7 - - - - -
  77,519.7 348.2 4,956.1 8,879.5 14,886.1 30,439.4 18,010.4
FINANCIAL LIABILITIES                
Bank notes in circulation   63,700.0 63,700.0 - - - - -
Deposits                
Government of Canada 1.03 11,701.5 - 11,701.5 - - - -
Members of the CPA 0.75 186.4 - 186.4 - - - -
Other deposits                
Unclaimed balances   496.1 496.1 - - - - -
Other 0.98 907.3 - 907.3 - - - -
Other financial liabilities   174.6 174.6 - - - - -
  77,165.9 64,370.7 12,795.2 - - - -
Interest rate sensitivity gap   353.8 (64,022.5) (7,839.1) 8,879.5 14,886.1 30,439.4 18,010.4

Note 3
Carrying amounts of Government of Canada bonds include accrued interest.

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Bank is exposed to currency risk primarily by holding shares in the BIS. These shares are denominated in Special Drawing Rights (SDRs). The SDR serves as the unit of account for the International Monetary Fund (IMF) and its value is based on a “basket” of four major currencies: the euro, the U.S. dollar, the pound sterling and the Japanese yen. SDRs are translated into Canadian-dollar equivalents at the rates prevailing on the date when the fair value is determined.

Consistent with 2012, at 31 December 2013, the Bank did not hold a significant amount of foreign currencies.

Given the small size of the Bank’s net foreign currency exposure relative to its total assets, currency risk is not considered significant.

Other price risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from changes in interest and exchange rates), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or by factors affecting all similar financial instruments traded in the market.

The Bank is exposed to other price risk through its investment in the BIS. For accounting purposes, the Bank treats BIS shares as available for sale and the fair value of these shares is estimated on the basis of the net asset value of the BIS, less a discount of 30 per cent. Accordingly, these shares are revalued to reflect movements in the net asset value of the BIS and in the Canadian dollar. The other price risk faced on BIS shares is incidental to the general reasons for holding them and is immaterial compared with other market risks faced by the Bank.

(iii) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. As shown in the following table, the Bank’s largest liability is Bank notes in circulation. As a counterpart to this non-interest-bearing liability with no fixed maturity, the Bank holds a portfolio of highly liquid, interest-bearing securities. In the event of an unexpected redemption of bank notes or a significant withdrawal from the Government of Canada’s deposit for the prudential liquidity-management plan, the Bank has the ability to settle the obligation by means of several tools.

As the nation’s central bank, the Bank is the ultimate source of liquid funds to the Canadian financial system and has the power and operational ability to create Canadian-dollar liquidity in unlimited amounts at any time. This power is exercised as part of the Bank’s commitment to keep inflation low, stable and predictable.

LVTS guarantee

The Bank is exposed to liquidity risk through its guarantee of the LVTS. The maximum exposure under this guarantee is described in note 17, Commitments, contingencies and guarantees.

The following table presents a maturity analysis of the Bank’s financial assets and liabilities. The balances in this table do not correspond to the balances in the Statement of Financial Position, since the table presents all cash flows on an undiscounted basis.

As at 31 December 2013

  Total No fixed maturity 1 business day 1 business day to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 years
FINANCIAL ASSETS                
Cash and foreign deposits 5.0 5.0 - - - - - -
Loans and receivables                
Advances to members of the CPA -   -          
Securities purchased under resale agreements 2,205.9 - - 2,205.9 - - - -
Other receivables 9.0 - - 9.0 - - - -
Investments                
Government of Canada treasury bills 21,650.0 - - 4,750.0 6,400.0 10,500.0 - -
Government of Canada bonds (see note 4) 65,764.6 - - - 3,469.0 10,165.0 31,971.8 20,158.8
Shares in the BIS 337.1 337.1 - - - - - -
89,971.6 342.1 - 6,964.9 9,869.0 20,665.0 31,971.8 20,158.8
FINANCIAL LIABILITIES                
Bank notes in circulation 66,615.9 66,615.9 - - - - - -
Deposits                
Government of Canada 22,329.9 22,329.9 - - - - - -
Members of the CPA 186.7 - 186.7 - - - - -
Other deposits                
Unclaimed balances 532.7 532.7 - - - - - -
Other 774.2 774.2 - - - - - -
Other liabilities 254.4 - - 254.4 - - - -
90,693.8 90,252.7 186.7 254.4 - - - -
Net maturity difference (722.2) (89,910.6) (186.7) 6,710.5 9,869.0 20,665.0 31,971.8 20,158.8

Note 4
Interest payments on Government of Canada bonds are classified according to their coupon date.

In cases where counterparties to securities purchased under resale agreements substitute collateral after the outset of an agreement, portions of the carrying values presented may mature earlier than as presented, where the amount maturing early is dependent on the value of the collateral being substituted. Where collateral has been substituted, agreements are typically re-established under the same terms and conditions. The information presented in the above table is prepared according to agreements in place as at 31 December 2013.

Liabilities with no fixed maturity include Bank notes in circulation and Government of Canada Deposits. Historical experience has shown that bank notes in circulation provide a stable source of long-term funding for the Bank. Government of Canada Deposits are deposits held in the Bank’s capacity as the Government of Canada’s fiscal agent.

As at 31 December 2012

  Total No fixed maturity 1 business day 1 business day to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 years
FINANCIAL ASSETS                
Cash and foreign deposits 6.8 6.8 - - - - - -
Loans and receivables                
Advances to members of the CPA 61.8   61.8          
Securities purchased under resale agreements 1,838.3 - - 1,838.3 - - - -
Other receivables 5.5 - - 5.5 - - - -
Investments                
Government of Canada treasury bills 19,050.0 - - 3,050.0 7,050.0 8,950.0 - -
Government of Canada bonds(see note 5) 55,344.6 - - - 1,830.0 5,950.0 30,295.8 17,268.8
Shares in the BIS 342.7 342.7 - - - - - -
76,649.7 349.5 61.8 4,893.8 8,880.0 14,900.0 30,295.8 17,268.8
FINANCIAL LIABILITIES                
Bank notes in circulation 63,700.0 63,700.0 - - - - - -
Deposits                
Government of Canada 11,701.5 11,701.5 - - - - - -
Members of the CPA 186.4 - 186.4 - - - - -
Other deposits                
Unclaimed balances 496.1 496.1 - - - - - -
Other 907.3 907.3 - - - - - -
Other liabilities 174.6 - - 174.6 - - - -
77,165.9 76,804.9 186.4 174.6 - - - -
Net maturity difference (516.2) (76,455.4) (124.6) 4,719.2 8,880.0 14,900.0 30,295.8 17,268.8

Note 5
Interest payments on Government of Canada bonds are classified according to their coupon date.

8. Property and equipment
  Land and buildings Computer equipment Other equipment Total
2013        
Cost        
Balances, 31 December 2012 240.7 27.2 95.7 363.6
Additions 20.8 7.4 50.6 78.8
Disposals (37.8) (1.1) (65.8) (104.7)
Transfers to other asset categories (2.3) 2.3 - -
Balances, 31 December 2013 221.4 35.8 80.5 337.7
Depreciation        
Balances, 31 December 2012 (89.4) (7.1) (76.7) (173.2)
Depreciation expense (13.8) (4.9) (9.8) (28.5)
Disposals 30.8 0.6 65.0 96.4
Transfers to other asset categories - - - -
Balances, 31 December 2013 (72.4) (11.4) (21.5) (105.3)
Carrying amounts        
At 31 December 2012 151.3 20.1 19.0 190.4
At 31 December 2013 149.0 24.4 59.0 232.4
Projects in progress 2013        
Included in Carrying amounts at 31 December 2013 19.7 2.0 0.1 21.8
Additions during 2013 17.8 1.8 0.4 20.0
Commitments at 31 December 2013 41.4 0.1 5.7 47.2

Projects in progress consist primarily of $19.7 million related to the Head Office Renewal Program (31 December 2012—$8.2 million), $1.8 million related to the High Availability Renewal Program (31 December 2012—$Nil) and $0.3 million related to the Tri-Agency Database System Renewal (31 December 2012—$Nil). The Currency equipment adaptation (31 December 2012—$2.3 million) and the Enhanced Business-Continuity Initiative (31 December 2012—$42.3 million) were put in service in 2013 and removed from Projects in progress.

On 1 October 2012, as a result of the program to overhaul and modernize the head office facility (Head Office Renewal Program), the estimated useful lives of the components related to the existing facility were adjusted to reflect the start of the construction on 31 December 2013. The impact of this change was an increase to depreciation expenses of $15.5 million for the year ending 31 December 2013.

Leasehold improvements totalling $30.1 million incurred in 2013 related to the program to overhaul and modernize the head office facility are included in Other equipment.

Other equipment additions include $12.5 million for bank note inspection equipment, which was obtained through a finance lease arrangement (note 16b). The net carrying amount of the equipment at 31 December 2013 was $11.3 million ($Nil at 31 December 2012).

In December 2013, the Bank signed a memorandum of understanding with the construction manager that establishes a guaranteed maximum price for future construction at the head office facility. At 31 December 2013, the Bank had formalized $42.3 million in contractual commitments toward this construction agreement.

  Land and buildings Computer equipment Other equipment Total
2012        
Cost        
Balances, 31 December 2011 218.2 30.8 99.5 348.5
Additions 23.6 5.6 2.0 31.2
Disposals (4.2) (9.2) (2.7) (16.1)
Transfers to other asset categories 3.1 - (3.1) -
Balances, 31 December 2012 240.7 27.2 95.7 363.6
Depreciation        
Balances, 31 December 2011 (85.1) (12.1) (74.7) (171.9)
Depreciation expense (8.5) (4.0) (4.7) (17.2)
Disposals 4.2 9.0 2.7 15.9
Transfers to other asset categories - - - -
Balances, 31 December 2012 (89.4) (7.1) (76.7) (173.2)
Carrying amounts        
At 31 December 2011 133.1 18.7 24.8 176.6
At 31 December 2012 151.3 20.1 19.0 190.4
Projects in progress 2012        
Included in Carrying amounts at 31 December 2012 48.2 6.9 2.1 57.2
Additions during 2012 23.6 4.2 1.7 29.5
Commitments at 31 December 2012 22.2 3.4 3.0 28.6
9. Intangible assets
  Internally generated software Other software Total
2013      
Cost      
Balances, 31 December 2012 42.8 55.8 98.6
Additions 0.4 5.6 6.0
Disposals - - -
Balances, 31 December 2013 43.2 61.4 104.6
Amortization      
Balances, 31 December 2012 (29.7) (13.3) (43.0)
Amortization expense (4.1) (5.3) (9.4)
Disposals - - -
Balances, 31 December 2013 (33.8) (18.6) (52.4)
Carrying amounts      
At 31 December 2012 13.1 42.5 55.6
At 31 December 2013 9.4 42.8 52.2
Projects in progress 2013      
Included in Carrying amounts at 31 December 2013 - 4.1 4.1
Additions during 2013 - 2.7 2.7
Commitments at 31 December 2013 - - -

Projects in progress consist primarily of $4.1 million related to the Tri-Agency Database System Renewal (31 December 2012—$1.4 million). The Auctions and Markets Applications Program (31 December 2012—$21.7 million), the Currency equipment adaptation (31 December 2012—$1.7 million) and the datamanagement stream of the Analytic Environment Program (31 December 2012—$7.7 million) were put in service in 2013 and removed from Projects in progress.

  Internally generated software Other software Total
2012      
Cost      
Balances, 31 December 2011 42.8 40.2 83.0
Additions - 17.5 17.5
Disposals - (1.9) (1.9)
Balances, 31 December 2012 42.8 55.8 98.6
Amortization      
Balances, 31 December 2011 (25.8) (12.6) (38.4)
Amortization expense (3.9) (1.9) (5.8)
Disposals - 1.2 1.2
Balances, 31 December 2012 (29.7) (13.3) (43.0)
Carrying amounts      
At 31 December 2011 17.0 27.6 44.6
At 31 December 2012 13.1 42.5 55.6
Projects in progress 2012      
Included in Carrying amounts at 31 December 2012 - 32.8 32.8
Additions during 2012 - 16.1 16.1
Commitments at 31 December 2012 - 0.1 0.1
10. Other assets
  31 December 2013 31 December 2012
Bank note inventory 11.9 32.1
Net defined-benefit asset (note 14) 197.7 0.8
All other assets 14.5 8.7
Total other assets 224.1 41.6
11. Bank notes in circulation

In accordance with the Bank of Canada Act, the Bank has the sole authority to issue bank notes for circulation in Canada. A breakdown by denomination is presented below.

  31 December 2013 31 December 2012
$5 1,103.4 1,130.5
$10 1,263.8 1,204.1
$20 17,229.7 17,202.1
$50 10,744.3 10,144.8
$100 35,039.3 32,742.5
Other bank notes 1,235.4 1,276.0
Bank notes in circulation 66,615.9 63,700.0

Other bank notes include denominations that are no longer issued but continue to be legal tender. Bank notes in circulation are non-interest-bearing liabilities and are due on demand.

12. Deposits

The liabilities within Deposits consist of $23,823.5 million in Canadian-dollar demand deposits ($13,291.3 million at 31 December 2012). The Bank pays interest on the deposits for the Government of Canada, banks and other financial institutions at short-term market rates, and interest expense on deposits is included in the Statement of Comprehensive Income. Further information on the rates of interest is presented in the interest rate risk table in note 7.

Deposits from the Government of Canada consist of $2,329.9 million for operational balances and $20,000.0 million held for the prudential liquidity-management plan ($1,701.5 million and $10,000.0 million, respectively, at 31 December 2012).

13. Other liabilities
  31 December 2013 31 December 2012
Accrued transfer payment to the Receiver General for Canada 153.7 82.2
Net defined-benefit liability (note 14)    
Pension benefit plans 16.8 20.1
Other benefit plans 159.9 182.7
All other liabilities and provisions 100.7 92.5
Total other liabilities 431.1 377.5

The accrued transfer payment to the Receiver General for Canada of $153.7 million (31 December 2012—$82.2 million) is included in the $1,230.7 million Transfer to the Receiver General for the year presented in the Statement of Changes in Equity (31 December 2012—$1,022.2 million).

For the year ended 31 December 2013, an amount of $82.2 million related to 2012 net income and $1,077.0 million related to 2013 net income was paid to the Receiver General for Canada ($78.4 million related to 2011 net income and $940.0 million related to 2012 net income was paid in 2012).

As a result of the program to overhaul and modernize the head office facility, provisions totalling $15.1 million for the final year of the five-year lease agreement for temporary office space and for site restoration costs were recognized in 2012 and are included under Other liabilities.

14. Employee benefit plans

The Bank sponsors a funded defined-benefit pension plan (the Bank of Canada Registered Pension Plan) and a funded defined-benefit supplementary pension arrangement (the Bank of Canada Supplementary Pension Arrangement), which are designed to provide retirement income benefits to eligible employees. Benefits provided under these plans are calculated based on years of service and average full-time salary for the best five consecutive years and are indexed to reflect changes in the consumer price index on the date payments begin and each 1 January thereafter.

Effective 1 January 2012, the plan bylaws were amended to reflect a new defined-benefit plan design for eligible employees hired after that date and for current plan members who selected the new design for service from that date forward. The amendment increased the age at which members are entitled to receive pension benefits, removed the bridge benefit and adjusted employee contributions.

The Bank is the administrator of the pension plans. The Bank’s Board of Directors has established a Pension Committee and has delegated to it the responsibility for carrying out the Bank’s duties as administrator of the plans, including adherence to the guidelines established in the Statement of Investment Policy and Procedures (SIPP), which is approved annually by the Board. A separate trust fund has been established for each plan to receive and invest contributions and pay benefits due under the plans.

The most recent actuarial valuation for funding purposes of the Registered Pension Plan was done as of 1 January 2013, and the next required valuation will be as of 1 January 2014.

The Bank also sponsors other unfunded benefit plans, which include life insurance and eligible health and dental benefits and a long-term disability program, as well as a long-service benefit program for employees hired before 1 January 2003.

The Bank measures its defined-benefit obligations and the fair value of plan assets for accounting purposes as at 31 December of each year.

The changes in plan assets and defined-benefit obligations for the year are as follows:

  Pension benefit plans (see note 6) Other benefit plans
31 December 2013 31 December 2012 31 December 2013 31 December 2012
Fair value of plan assets        
Fair value of plan assets at beginning of year 1,266.5 1,143.1 - -
Interest income (see note 7) 50.7 52.8 - -
Remeasurement gains/(losses)        
Return on plan assets (excluding net interest) (see note 7) 84.3 63.8 - -
Bank contributions 41.3 42.0 - -
Employee contributions 10.2 11.9 - -
Benefit payments and transfers (46.6) (45.7) - -
Administration costs (see note 7) (1.5) (1.4) - -
Fair value of plan assets at end of year 1,404.9 1,266.5 - -
Defined-benefit obligation        
Benefit obligation at beginning of year 1,285.8 1,127.7 182.7 164.7
Current service cost 33.2 25.9 7.5 7.4
Interest cost 52.7 52.1 7.2 7.4
Employee contributions 10.2 11.9 - -
Remeasurement (gains)/losses        
Actuarial (gains)/losses arising from changes in demographic experience (see note 7) 66.1 (5.6) 6.6 -
Actuarial (gains)/losses arising from changes in financial assumptions (see note 7) (179.0) 119.6 (34.9) 12.5
Past service costs 1.6 - - 0.6
Benefit payments and transfers (46.6) (45.8) (9.2) (9.9)
Defined-benefit obligation at end of year 1,224.0 1,285.8 159.9 182.7
Net definedbenefit asset/(liability) 180.9 (19.3) (159.9) (182.7)
Net definedbenefit asset 197.7 0.8 - -
Net definedbenefit liability (16.8) (20.1) (159.9) (182.7)
Net definedbenefit asset/(liability) 180.9 (19.3) (159.9) (182.7)

Note 6
For the Supplementary Pension Arrangement, in which the defined-benefit obligation exceeds plan assets, the defined-benefit obligation and the fair value of plan assets totalled $85.8 million ($83.2 million at 31 December 2012) and $69.0 million ($63.1 million at 31 December 2012), respectively.

Note 7
On 1 January 2013, the amendments to IAS 19 eliminated the recognition of the expected return on plan assets in net income; instead, interest income on plan assets is calculated using the discount rate to measure the pension obligations. The return on plan assets includes plan administration costs only if those costs relate to the management of plan assets and if other administration costs are expensed. The amendments to IAS 19 also require remeasurement gains and losses affecting the defined-benefit obligation to be classified based on their nature: those arising from changes in demographic experience, those arising from changes in demographic assumptions and those arising from changes in financial assumptions. The change is applied retrospectively and results in a reclassification of $15.7 million to comparative figures in 2012.

Asset mix

The Plan’s Statement of Investment Policy and Procedures requires that its investments be held in a diversified mix of asset types and also sets out requirements for investment eligibility. The diversification of assets serves to decrease the variations in the expected return performance of the portfolio. The current practice is to conduct an Asset-Liability Modelling (ALM) study every three years. The ALM assists the Pension Committee in establishing an asset allocation that is consistent with the pension plan’s objectives and the Bank’s risk tolerance.

The Plan’s investments are subject to credit, liquidity and market risks. Of these risks, the most significant is asset volatility, since plan liabilities are calculated using a discount rate set with reference to the yield on Canadian AA-corporate bonds. If plan assets underperform this yield, a deficit will be created. Requirements for asset diversification and investment eligibility serve as basic risk-management tools for the investment portfolio as a whole.

Plan assets consist of the following:

  31 December 2013 31 December 2012
Quoted Unquoted Total In % Quoted Unquoted Total In %
Money market instruments 11.2 - 11.2 0.8 12.2 - 12.2 1.0
Equity instruments                
Canadian equity funds 310.0 - 310.0 22.1 279.9 - 279.9 22.0
Foreign equity funds 517.4 - 517.4 36.8 425.7 - 425.7 33.6
Debt instruments (see note 8)                
Securities issued or guaranteed by the Government of Canada 171.3 - 171.3 12.2 171.4 - 171.4 13.5
Other securities 295.0 - 295.0 21.0 284.4 - 284.4 22.5
Real estate funds - 69.1 69.1 4.9 - 63.1 63.1 5.0
Statutory deposit - 30.9 30.9 2.2 - 29.8 29.8 2.4
1,304.9 100.0 1,404.9 100.0 1,173.6 92.9 1,266.5 100.0

Note 8
Debt instruments consist of fixed-income securities and inflation-linked assets.

Defined-benefit obligations and expenses

The defined-benefit obligation, presented in terms of membership, is as follows:

  Pension benefit plans Other benefit plans
31 December 2013 31 December 2012 31 December 2013 31 December 2012
Active members 476.5 546.6 89.4 105.7
Pensioners 675.7 658.2 70.5 77.0
Deferred members 71.8 81.0 - -
Defined-benefit obligation 1,224.0 1,285.8 159.9 182.7

Benefit plan expenses recognized in the Statement of Comprehensive Income are composed of the following components:

  Pension benefit plans Other benefit plans
31 December 2013 31 December 2012 31 December 2013 31 December 2012
Current service cost, net of employee contributions 33.2 25.9 7.5 7.4
Past service costs 1.6 - - 0.6
Net interest expense 2.0 (0.7) 7.2 7.4
Actuarial (gains)/losses arising from changes in financial assumptions - - (0.8) 0.8
Administration costs 1.5 1.4 - -
Benefit plan expense recognized in Net Income 38.3 26.6 13.9 16.2
Remeasurement on the net defined-benefit liability/asset:        
Return on plan assets (excluding net interest) (84.3) (63.8) - -
Actuarial (gains)/losses arising from changes in demographic experience 66.1 (5.6) 6.6 -
Actuarial (gains)/losses arising from changes in financial assumptions (179.0) 119.6 (34.1) 11.7
Remeasurement (gains)/losses recognized in Other Comprehensive Income (197.2) 50.2 (27.5) 11.7

Remeasurement gains and losses pertaining to post-employment benefit plans are recognized in Other Comprehensive Income and are accumulated in Equity in the Remeasurements reserve.

The cumulative remeasurement losses recognized in Other Comprehensive Income are as follows:

  Pension benefit plans Other benefit plans
31 December 2013 31 December 2012 31 December 2013 31 December 2012
  (restated —note 3)    
Cumulative remeasurement losses recognized, beginning of year (330.6) (280.4) (39.5) (27.8)
Remeasurement gains/(losses) recognized in current year 197.2 (50.2) 27.5 (11.7)
Cumulative remeasurement losses recognized, end of year (133.4) (330.6) (12.0) (39.5)

Total cash payments

Regulations governing federally regulated pension plans establish certain solvency requirements that assume that the plans are wound up at the valuation date. The actuarial valuation of the Registered Pension Plan completed at 1 January 2013 reported a solvency deficit of $83.0 million, and the Bank is making additional contributions to fund this solvency deficit over a period of five years. In 2013, $16.9 million of the employer contributions to the plan represented solvency deficit payments. Contributions in 2014 will be based on the actuarial valuation as at 1 January 2014, and are estimated to be $23.8 million, which consists of $19.5 million in regular contributions to cover current service costs and $4.3 million toward the elimination of the solvency deficit.

Assumptions

The significant assumptions used are as follows (on a weighted-average basis):

  Pension benefit plans Other benefit plans
31 December 2013 31 December 2012 31 December 2013 31 December 2012
Defined-benefit obligation        
Discount rate 4.90% 4.00% 4.79% 3.86%
Inflation rate (see note 9) 2.00% 2.00% n.a. n.a.
Rate of compensation increase 3.30% 3.30% 3.30% 3.30%
  + merit + merit + merit + merit
Benefit plan expense        
Discount rate 4.00% 4.60% 3.86% 4.44%
Inflation rate (see note 10) 2.00% 2.00% n.a. n.a.
Rate of compensation increase 3.30% 3.30% 3.30% 3.30%
  + merit + merit + merit + merit
Assumed medical cost trend        
Medical cost trend rate n.a. n.a. 6.31% - 4.50% 6.43% - 4.50%
Year that the rate reaches the ultimate trend rate n.a. n.a. 2029 2029

Note 9
Other benefit plans does not include an inflation rate adjustment since it is a component of Assumed medical cost trend.

Note 10
Other benefit plans does not include an inflation rate adjustment since it is a component of Assumed medical cost trend.

The discount rate is determined by reference to Canadian AA-corporate bonds with terms to maturity approximating the duration of the obligation.

The weighted-average duration of the defined-benefit obligation is approximately 16 years for the Pension benefit plans and 6 to 18 years for the Other benefit plans.

The mortality assumptions used in the plan valuations were updated in 2013 based on draft tables issued by the Canadian Institute of Actuaries. Actuarial adjustments to the tables are applied when recommended by the plan’s actuaries. In 2013, the assumption for life expectancy for the plan valuations assumes that a male member reaching 60 will live for approximately 27 years (2012: 25 years) and a female member approximately 29 years (2012: 27 years).

Sensitivity analysis

The following table outlines the potential impact of changes in certain key assumptions used in measuring the defined-benefit obligations and benefit costs. The sensitivity analysis presented in this table is hypothetical and should be used with caution.

  Change in obligation
Pension benefit plans Other benefit plans
Discount rate 4.90% 4.79%
Impact of 0.10 percentage point increase (19.1) (2.5)
Impact of 0.10 percentage point decrease 19.6 2.7
Rate of compensation increase 3.30% 3.30%
Impact of 0.10 percentage point increase 3.2 0.3
Impact of 0.10 percentage point decrease (3.1) (0.3)
Mortality rate    
Impact of 0.10 percentage point increase 23.1 (2.3)
Impact of 0.10 percentage point decrease (20.9) 2.6
Inflation rate 2.00% n.a.
Impact of 0.10 percentage point increase 17.1 n.a.
Impact of 0.10 percentage point decrease (16.7) n.a.
Medical cost trend rates n.a. 6.31%
Impact of 1.00 percentage point increase n.a. 27.9
Impact of 1.00 percentage point decrease n.a. (21.6)

The above sensitivity analysis is based on a change in assumptions while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The method and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

15. Equity

The Bank’s objectives in managing its capital are in compliance with the Bank of Canada Act and have not changed from the previous year. There were no other externally imposed capital requirements at the end of the reporting year.

The elements of equity are shown in the table below:

  31 December 2013 31 December 2012
Share capital 5.0 5.0
Statutory reserve 25.0 25.0
Special reserve 100.0 100.0
Available-for-sale reserve 305.2 308.5
Remeasurements reserve - -
Retained earnings - -
Total equity 435.2 438.5

Share capital

The authorized capital of the Bank is $5.0 million divided into 100 000 shares with a par value of $50 each. The shares are fully paid and have been issued to the Minister of Finance, who holds them on behalf of the Government of Canada.

Statutory reserve

The statutory reserve was accumulated out of net income until it reached the stipulated maximum amount of $25.0 million in 1955.

Special reserve

The special reserve was created in 2007 further to an amendment to the Bank of Canada Act to offset potential unrealized valuation losses due to changes in the fair value of the Bank’s available-for-sale portfolio. The amount held in the special reserve is reviewed regularly for appropriateness using value-at-risk analysis and scenario-based stress tests and may be amended, pursuant to a resolution passed by the Board of Directors. The value-at-risk analysis uses historical data to estimate the maximum possible extent of unrealized valuation losses of the Bank’s treasury bill portfolio. The scenario-based stress tests assess the impact of a rapid increase in interest rates on the value of the Bank’s treasury bill portfolio. This reserve is subject to a ceiling of $400 million; an initial amount of $100 million was established in September 2007.

Available-for-sale reserve

The available-for-sale reserve represents cumulative movements in the fair value of the Bank’s available-for-sale portfolios, as shown below:

  31 December 2013 31 December 2012
Government of Canada treasury bills 6.2 3.9
BIS shares 299.0 304.6
Available-for-sale reserve 305.2 308.5

Remeasurements reserve

The remeasurements reserve was established on 1 January 2010, upon the Bank’s transition to IFRS, at an initial amount of $119.7 million to cover future remeasurements of the net defined-benefit liability/asset and to accumulate the remeasurements of the net defined-benefit liability/asset related to the Bank’s defined-benefit plans.

  31 December 2013 31 December 2012
Remeasurements reserve established on 1 January 2010 119.7 119.7
Accumulated remeasurements applied to the reserve (119.7) (119.7)
Remeasurements reserve - -

Retained earnings

The net income of the Bank, less any allocation to reserves, is considered to be ascertained surplus and is transferred to the Receiver General for Canada, consistent with the requirement of section 27 of the Bank of Canada Act.

The Bank’s remittance agreement with the Minister of Finance was designed to eliminate the risk of exposing the Bank to negative capital. This agreement allows the Bank to deduct from its remittances to the Receiver General and hold within Retained earnings an amount equal to unrealized losses on AFS financial assets, unrealized remeasurements of the net defined-benefit liability/asset on defined-benefit plans and other unrealized or non-cash losses arising as a result of changes in accounting standards or legislation. During 2013, the Bank paid $224.7 million for amounts withheld in previous years ($61.9 million during 2012 [restated note 3]) and, as at 31 December 2013, $25.5 million ($250.3 million as at 31 December 2012 [restated note 3]) in withheld remittances was outstanding.

16. Leases

(a) Operating lease commitments

The Bank occupies leased premises in Ottawa, Halifax, Montréal, Toronto, Calgary and Vancouver. The minimum payments are determined at the beginning of the lease and may vary during the term of the lease. Contingent rent on premises leases is based on building operating costs; for office equipment leases, contingent rent is based on usage. The expiry dates vary for each lease, from August 2014 to October 2025.

As a result of the program to overhaul and modernize the head office facility, in 2012 the Bank signed a five-year lease agreement for temporary office space.

At 31 December 2013, the future minimum payments are $75.1 million for rent, real estate taxes and building operations. Lease payments expensed in the period are $12.2 million ($15.2 million as at 31 December 2012).

  31 December 2013 31 December 2012
Due within one year 16.0 8.8
Due within one to five years 55.8 63.2
Due later than five years 3.3 10.9
Total premises lease commitments 75.1 82.9

(b) Finance lease

As at 31 December 2013, the future minimum lease payments were $12.0 million for equipment obtained through a finance lease arrangement (note 8). The finance lease obligation amounted to $11.5 million at 31 December 2013 ($Nil as at 31 December 2012) and is recorded in Other liabilities.

17. Commitments, contingencies and guarantees

(a) Long-term contracts other than leases

The Bank has a long-term contract with an outside service provider for retail debt services that expires in 2021. At 31 December 2013, fixed payments totalling $152.6 million remained, plus a variable component based on the volume of transactions.

The Bank has a long-term contract with an outside service provider for data centre services that expires in 2022. At 31 December 2013, fixed payments totalling $15.7 million remained.

Commitments related to the program to overhaul and modernize the head office facility are included in commitments for Property and equipment in note 8.

The total minimum annual payments for long-term contracts, other than leases, Property and equipment, and Intangibles, are as follows:

  Outsourced services
Due within one year 22.1
Due within one to three years 44.2
Due within three to five years 44.2
Thereafter 57.8
Total minimum annual payments 168.3

(b) Foreign currency contracts

The Bank is a counterparty to several foreign currency swap facilities, as follows:

  Maximum available
Bilateral liquidity swap facilities with central banks  
Bank of Japan (denominated in Japanese yen) Unlimited
Swiss National Bank (denominated in Swiss francs) Unlimited
Bank of England (denominated in British pounds) Unlimited
European Central Bank (denominated in euros) Unlimited
Federal Reserve Bank of New York (denominated in U.S. dollars) Unlimited
Other swap facilities  
Exchange Fund Account of Canada (denominated in Canadian dollars) Unlimited
Federal Reserve Bank of New York (denominated in U.S. dollars) 2,000.0
Banco de México (denominated in Canadian dollars) 1,000.0

None of the liquidity or other swaps were accessed, by either party, in 2013 or 2012. No related commitments existed at 31 December 2013 ($Nil as at 31 December 2012).

Bilateral liquidity swap facilities with central banks

The bilateral liquidity swap facilities were established to provide liquidity in each jurisdiction in any of their currencies, should market conditions warrant.

The swap facilities with the Bank of Japan, the Swiss National Bank, the Bank of England, the European Central Bank and the Federal Reserve Bank of New York were converted to standing arrangements in January 2014. The Bank and the Federal Reserve Bank of New York also removed the US$30,000 million limit on their reciprocal facility.

These facilities can be structured as either a Canadiandollar liquidity or a foreign currency liquidity swap arrangement and can be initiated by either party. The exchange rate applicable to the swap facilities is based on the prevailing market spot exchange rate as mutually agreed upon by the parties.

Other swap facilities

The other swap facilities established with the Federal Reserve Bank of New York and with the Banco de México, which expire on 12 December 2014, have indefinite terms and are subject to annual renewal.

The Bank is also party to a standing foreign currency swap facility with the Exchange Fund Account of Canada. There is no stated maximum amount under this agreement.

(c) Contingency

The 9 441 shares in the BIS have a nominal value of 5 000 Special Drawing Rights per share, of which, 25 per cent (i.e., SDR1,250) is paid up. The balance of SDR3,750 is callable at three months’ notice by a decision of the BIS Board of Directors. The Canadian equivalent of this contingent liability was $58.0 million at 31 December 2013 ($54.2 million at 31 December 2012), based on prevailing exchange rates.

(d) Guarantees

In the normal course of operations, the Bank enters into certain guarantees, which are described below.

LVTS guarantee

The LVTS is a large-value payment system, owned and operated by the CPA. Any deposit-taking financial institution that is a member of the CPA can participate in the LVTS, provided that it maintains a settlement account at the Bank of Canada, has the facilities to pledge collateral for LVTS purposes and meets certain technical requirements. The system’s risk-control features, which include caps on net debit positions and collateral to secure the use of overdraft credit, are sufficient to permit the system to obtain the necessary liquidity to settle in the event of the failure of the single LVTS participant having the largest possible net amount owing. The Bank guarantees to provide this liquidity, and, in the event of a single-participant failure, the liquidity loan will be fully collateralized. In the extremely unlikely event that there were defaults by more than one participant during the LVTS operating day, in an aggregate amount in excess of the largest possible net amount owing by a single participant, there would not likely be enough collateral to secure the amount of liquidity that the Bank would need to provide to settle the system. This might result in the Bank having unsecured claims on the defaulting participants in excess of the amount of collateral pledged to the Bank to cover the liquidity loans. The Bank would have the right, as an unsecured creditor, to recover any amount of its liquidity loan that was unpaid. The amount potentially at risk under this guarantee is not determinable, since the guarantee would be called upon only if a series of extremely low-probability events were to occur. No amount has ever been provided for in the liabilities of the Bank, and no amount has ever been paid under this guarantee.

Other indemnification agreements

In the normal course of operations, the Bank provides indemnification agreements with various counterparties in transactions such as service agreements, software licences, leases and purchases of goods. Under these agreements, the Bank agrees to indemnify the counterparty against loss or liability arising from acts or omissions of the Bank in relation to the agreement. The nature of the indemnification agreements prevents the Bank from making a reasonable estimate of the maximum potential amount that the Bank would be required to pay such counterparties. No amount has ever been paid under such indemnifications.

(e) Insurance

The Bank does not normally insure against direct risks of loss to the Bank, except for potential liabilities to third parties and where there are legal or contractual obligations to carry insurance. However, in connection with the Head Office Renewal Program, the Bank has obtained insurance coverage for the period of construction to cover direct risks to the Bank’s property.

Any costs arising from risks not insured are recognized in the accounts if, as a result of a past event, the Bank has a present legal or constructive obligation that can be estimated reliably as at the statement of financial position date, and it is probable that an outflow of economic benefits will be required to settle the obligation.

18. Related parties

The Bank is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. To achieve its monetary policy objectives, the Bank maintains a position of structural and functional independence from the Government of Canada through its ability to fund its own operations without external assistance and through its management and governance.

In the normal course of its operations, the Bank enters into transactions with related parties, and material transactions and balances are presented in these financial statements. Not all transactions between the Bank and government-related entities have been disclosed, as permitted by the partial exemption available to wholly owned government entities in International Accounting Standard 24 Related Party Disclosures (IAS 24).

The Bank provides funds-management, fiscal-agent and banking services to the Government of Canada, as mandated by the Bank of Canada Act, and does not recover the costs of these services.

Bank of Canada pension plans

The Bank provides management, investment and administrative support to the Bank of Canada Registered Pension Plan. Services in the amount of $0.6 million ($0.6 million in 2012) were fully recovered from the Plan in 2013.

Key management personnel and compensation

The key management personnel responsible for planning, directing and controlling the activities of the Bank are the members of the Governing Council, the Management Council and the Board of Directors. The number of key management personnel as at 31 December 2013 was 21 (22 in 2012).

The compensation of key management personnel is presented in the following table:

  31 December 2013 31 December 2012
Short-term employee benefits 3.0 3.2
Post-employment benefits 0.9 0.8
Directors’ fees 0.3 0.3
Total compensation 4.2 4.3

Short-term employee benefits and post-employment benefits apply to Bank of Canada employees only.

There were no other long-term employee benefit costs or termination benefits related to key management personnel in 2013.

19. Comparative figures

Comparative figures have been reclassified, as described in note 3n, to conform with the presentation adopted for the current year. In addition, interest received decreased and proceeds from maturity of Government of Canada bonds increased by $10.0 million on the comparative Statement of Cash Flows.

[18-1-o]

(Erratum)

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice with respect to hydrofluorocarbons

Notice is hereby given that the notice bearing the above-mentioned title published in the Canada Gazette, Part I, Vol. 148, No. 16, Saturday, April 19, 2014, contained an error on page 922.  An “or” instead of an “and” should appear after subparagraph 4(a)(vi) of Schedule 2 in the English version. Section 4 of Schedule 2 should have read as follows:

4. This notice does not apply to a substance set out in Schedule 1

  • (a) that is contained in
    • (i) mobile or stationary refrigeration systems,
    • (ii) mobile or stationary air conditioning systems,
    • (iii) aerosols,
    • (iv) foams,
    • (v) fire suppression systems, or
    • (vi) fire extinguishing systems; or
  • (b) that is in
    • (i) transit through Canada, or
    • (ii) a hazardous waste or hazardous recyclable material within the meaning of the Export and Import of Hazardous Waste and Hazardous Recyclable Material Regulations and that was imported from 2008 to 2012 pursuant to a permit issued under those Regulations.

[18-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice respecting the Canada-Ontario Agreement on Great Lakes Water Quality and Ecosystem Health

In accordance with subsection 9(2) of the Canadian Environmental Protection Act, 1999 (S.C. 1999, c. 33), notice is hereby given that the Minister of the Environment (the Minister) has negotiated a draft “Canada-Ontario Agreement on Great Lakes Water Quality and Ecosystem Health” (the Agreement). The Agreement is available on the Environment Canada Web site at www.ec.gc.ca/lcpe-cepa/default.asp?lang=En&n=969645EE-1.

The Agreement is comprised of a series of articles that set out the purpose, principles and management of the Agreement, as well as annexes that identify commitments by each government to address: Nutrients, Harmful Pollutants, Discharges from Vessels, Areas of Concern, Lakewide Management, Groundwater Quality, Climate Change Impacts, Science, Promoting Innovation, Engaging Communities, Engaging First Nations and Engaging Métis.

Interested persons requiring additional information about the Agreement or Great Lakes should refer to the Environment Canada Web site at www.ec.gc.ca/grandslacs-greatlakes/ or contact Canada.Ontario.Agreement@ec.gc.ca.

Interested persons may, within 60 days after the publication of this notice, file with the Minister comments or a notice of objection with respect to the Agreement. All such comments and notices must cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Canada.Ontario.Agreement@ec.gc.ca.

May 3, 2014

LEONA AGLUKKAQ
Minister of the Environment

[18-1-o]

DEPARTMENT OF FOREIGN AFFAIRS, TRADE AND DEVELOPMENT

Consultations on a plurilateral environmental goods agreement

The Government of Canada is seeking the views of Canadians on the negotiation of a plurilateral environmental goods agreement among a group of World Trade Organization (WTO) members. The current participants in this initiative are Canada, Australia, China, Costa Rica, the European Union, Hong Kong (China), Japan, Korea, New Zealand, Norway, Singapore, Switzerland, Chinese Taipei, and the United States. Additional WTO members could potentially join the negotiations, and the resulting agreement would also be open to participation by other WTO members.

Background

In 2001, as part of the WTO Doha Ministerial Declaration, WTO members agreed to engage in negotiations on “the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services.” In the context of these negotiations, Canada became part of a group of like-minded members, the “Friends of the Environmental Goods.” This group advocated for focusing negotiations on a list of 153 environmental products to fulfill the mandate of the WTO Doha Ministerial Declaration. Opposition to this list approach was voiced by some other WTO members, who suggested diverging proposals to form the basis of negotiations. Due to these differing perspectives, an impasse was reached and the Doha negotiations on environmental goods have stalled. However, ongoing discussions in Geneva revealed that a significant number of WTO members are willing to pursue an ambitious agreement on environmental goods among themselves, as permitted under WTO rules. These discussions gained momentum during the fall of 2013 and negotiations are expected to start in 2014.

This new WTO plurilateral initiative seeks to build on the 2012 Asia-Pacific Economic Cooperation (APEC) List of Environmental Goods in order to liberalize trade on an expanded list of products and broaden participation to WTO members representing a “critical mass” of global trade in the products. Unlike the APEC commitment, an eventual WTO agreement would be legally binding and enforceable through the WTO dispute settlement procedures. The tariff reductions agreed to as part of a plurilateral environmental goods agreement would be made on a Most-Favoured-Nation basis. This means that the tariff concessions resulting from this initiative would benefit all WTO members.

Environmental goods are an important and growing part of Canada’s economy. They include goods for air pollution control, cleaner and resource efficient technologies and products, environmentally preferable products based on end use and disposal characteristics, heat and energy management products, environmental monitoring products, analysis and assessment equipment, goods for natural risk management and natural resources protection, noise and vibration abatement products, renewable energy plants, solid and hazardous waste management and recycling systems, goods for clean up or remediation of soil and water, and products for waste water management and potable water treatment.

Submissions by interested parties

In preparation for these negotiations, the Government of Canada is seeking to identify its interests and priorities in terms of product coverage and destination markets, as well as any concerns with non-tariff measures and other sensitivities that may exist. To inform this process, the Government is embarking on a public consultation process to give all interested stakeholders an early opportunity to provide input on a potential plurilateral environmental goods agreement. Interested parties wishing to contribute to this process are invited to provide responses to the following five questions:

  • 1. Are your products of interest adequately represented on the list of environmental goods prepared for this consultation process? (The list can be found at www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/env/plurilateral.aspx?lang=eng.) If not, or if you are uncertain, please provide us, in as much detail as possible, with information on your products of interest, including the Harmonized Commodity Description and Coding System (HS 2012) numbers for each product (descriptions can be found on the Canada Border Services Agency Web site at www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/).
  • 2. Please indicate your level of export priority for products of interest included in the list of environmental goods, using the following codes:
    • • VH: Very high priority
    • • H: High priority
    • • M: Medium priority
    • • L: Low priority
  • Please provide context and details for the goods of interest.
  • 3. Do you have concerns about Canada reducing or eliminating tariffs on any of the identified goods? If so, please indicate which specific goods (including the HS code) are sensitive for you, along with context and details of the sensitivity.
  • 4. Are you actively exporting to, or do you have intentions to export to, any destination countries that are not currently participants to these environmental goods tariff negotiations? (This question relates to products or technologies that require or are connected to the use of an environmental good.)
  • 5. Aside from merchandise tariffs, are you experiencing or do you anticipate other (non-tariff) barriers that may impede access of your products to destination markets? If so, please describe these barriers in as much detail as possible for each destination country. This will enable the Government of Canada to better assist you in doing business internationally.

The deadline for receiving input and comments is July 11, 2014. Please be advised that any information received as a result of this consultation will be considered as public information, unless explicitly designated as private. Submissions should include the contributor’s name and address and, if applicable, his or her organization, institution or business.

Additional information

For more information on the APEC List of Environmental Goods, please consult the APEC Web site at www.apec.org/Meeting-Papers/Leaders-Declarations/2012/2012_aelm/2012_aelm_annexC.aspx.

Additional information on Canada’s relationship with the countries participating in this initiative can be found on the Canadian Trade Commissioner Service Web site at www.tradecommissioner.gc.ca/eng/trade-offices.jsp.

For more information on the WTO and WTO members, please consult the WTO Web site at www.wto.org/.

Contact points

Questions and contributions may be sent by email or mail to

WTO Environmental Goods Negotiations Consultations
Government Procurement, Trade and Environment Division (TPZ)
Department of Foreign Affairs, Trade and Development
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Email: ENVconsultations@international.gc.ca

Questions or comments regarding the Canadian tariffs may also be sent by email or mail to

WTO Environmental Goods Negotiations Consultations
International Trade Policy Division
Department of Finance
140 O’Connor Street, East Tower, 14th Floor
Ottawa, Ontario
K1A 0G5
Email: Tariff-Tarif@fin.gc.ca

May 3, 2014

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DEPARTMENT OF INDIAN AFFAIRS AND NORTHERN DEVELOPMENT

MAA-NULTH FIRST NATIONS FINAL AGREEMENT

Transfer of estate

In accordance with 1.14.11 of the Maa-nulth First Nations Final Agreement (the “Final Agreement”) notice is hereby provided that British Columbia has declared the lttatsoo Creek Road, an Undeveloped Crown Corridor under Part 2 of Appendix D-3 and Part 2 of Appendix D-5, is no longer required for provincial needs in accordance with 7.3.1 of the Final Agreement. British Columbia has transferred the estate in fee simple to those lands to the Toquaht Nation and Ucluelet First Nation, respectively. Further, British Columbia, Toquaht Nation and Ucluelet First Nation have agreed in accordance with 1.14.11 of the Final Agreement that:

  1. 2.11.8 of the Final Agreement is hereby deemed to be amended, in accordance with 7.3.3 of the Final Agreement, as follows:
    • c. from the Maa-nulth First Nation Lands of Toquaht Nation, 70.06 hectares;
    • e. from the Maa-nulth First Nation Lands of Ucluelet First Nation, 270.34 hectares; and
  2. the Appendix B-3, Part 2(a), Plan 1 and Appendix B-5, Part 2(a), Plan 3 are hereby deemed to be amended, in accordance with 7.3.2 of the Final Agreement, to show the said lands form part of the Maa-nulth First Nation Lands of the Toquaht Nation and Ucluelet First Nation respectively.

February 6, 2013

HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA as represented by the Minister of Aboriginal Relations and Reconciliation or duly authorized signatory

Per: LLOYD ROBERTS

Executed in the presence of:

SELENA BASI

As to the authorized signature for the Minister of Aboriginal Relations and Reconciliation
TOQUAHT NATION as represented by the Toquaht Nation Government

Per: ANNE MACK

Executed in the presence of:

R. BRENT LEHMANN

As to the authorized signature for the Toquaht Nation

UCLUELET FIRST NATION as represented by the Yuułuʔiłʔatḥ Government

Per: CHUCK MCCARTHY

Executed in the presence of:

R. BRENT LEHMANN

As to the authorized signature for the Yuułuʔiłʔatḥ Government

[18-1-o]

DEPARTMENT OF INDIAN AFFAIRS AND NORTHERN DEVELOPMENT

MAA-NULTH FIRST NATIONS FINAL AGREEMENT

Transfer of estate

In accordance with 1.14.11 of the Maa-nulth First Nations Final Agreement (the “Final Agreement”) notice is hereby provided that Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations transferred to British Columbia the estate in fee simple in the Quin-E-Ex Lands on the Effective Date of the Final Agreement in accordance with 24.4.1 of the Final Agreement. Further, the boundaries of Brooks Peninsula Provincial Park have been amended to add the Quin-E-Ex Lands to Brooks Peninsula Provincial Park in accordance with 24.4.3 of the Final Agreement. Further, British Columbia and Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations have agreed in accordance with 1.14.11 of the Final Agreement that Appendix B-2, Part 2(a), Plan 1 is hereby deemed to be amended, in accordance with 24.4.2 of the Final Agreement, to show the Quin-E-Ex Lands form part of the Brooks Peninsula Provincial Park.

February 6, 2013

HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA as represented by the Minister of Aboriginal Relations and Reconciliation or duly authorized signatory

Per: LLOYD ROBERTS

Executed in the presence of:

SELENA BASI

As to the authorized signature for the Minister of Aboriginal Relations and Reconciliation

KA:’YU:’K’T’H’/CHE:K’TLES7ET’H’ FIRST NATIONS as represented by the Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations Government

Per: ANNE MACK

Executed in the presence of:

R. BRENT LEHMANN

As to the authorized signature for the Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations

[18-1-o]

DEPARTMENT OF INDUSTRY

OFFICE OF THE REGISTRAR GENERAL

Appointments

Name and position Order in Council
Allen, Ronald 2014-420

Gwich’in Land Claim Settlement Act

 

Renewable Resources Board

 

Alternate Member

 

Auditor General of Canada

2014-382

The Jacques-Cartier and Champlain Bridges Inc.

 

Auditor

 
Ballantyne, Meena 2014-462

Office of the Coordinator, Status of Women

 

Coordinator

 
Beaudet, André 2014-380

National Battlefields Commission

 

Secretary

 
Berthiaume, Guy 2014-394

Library and Archives of Canada

 

Librarian and Archivist

 
Boivin, The Hon. Richard 2014-441

Federal Court of Appeal

 

Judge

 

Federal Court

 

Member ex officio

 
Bond, Sadie 2014-456

Her Majesty’s Court of Queen’s Bench for Manitoba

 

Judge

 
Brault, Simon, O.C., O.Q. 2014-395

Canada Council for the Arts

 

Director

 
Carefoot, David 2014-415

The Canadian Wheat Board

 

Director of the board of directors

 
Daud, Aslam 2014-386

Canadian Race Relations Foundation

 

Director of the Board of Directors

 

de Gaspé Beaubien, Nannette

2014-400

National Research Council of Canada

 

Member

 
Federal Court  

Judges

 
Federal Court of Appeal  

Members ex officio

 

LeBlanc, René

2014-442

Locke, George R.

2014-444

St-Louis, Martine

2014-443
Gaul, The Hon. Geoffrey R. J. 2014-372

Government of British Columbia

 

Administrator

 

April 28 to May 2, June 12 and June 13, and from September 15 to September 19, 2014

 
Goebel, Gwendolyn V. 2014-457

Her Majesty’s Court of Queen’s Bench for Saskatchewan

 

Judge

 
Gordon, Lindsay 2014-391

Export Development Canada

 

Director of the Board of Directors

 
Government of Quebec 2014-371

Administrators

 

Giroux, The Hon. Lorne

 

May 23 to May 26, June 9 to June 13 and June 23 to July 25, 2014

 

Pelletier, The Hon. François

 

April 8 to April 13 and May 12 to May 22, 2014

 
Hachey, John V. 2014-381

Canadian Museum of Immigration at Pier 21

 

Trustee of the Board of Trustees

 
Houle, Jocelyne 2014-379

Canada Lands Company Limited

 

Director of the board of directors

 
Immigration and Refugee Board of Canada  

Full-time members

 

Dickenson, Kirk

2014-385

Forbes, Cathryn L.

2014-383

Sterlin, Michael

2014-384

Knott, Susan Jane

2014-396

Canadian Museum of Nature

 

Trustee of the Board of Trustees

 
Lafond, George 2014-417

Office of the Treaty Commissioner in Saskatchewan

 

Treaty Commissioner

 
Liddy, Gavin 2014-461

Associate Deputy Minister of Public Works and Government Services

 
Lyon, Andrea 2014-460

Deputy Minister of Agriculture and Agri-Food

 
MacIntyre, Alexander Laughlin 2014-410

Atlantic Pilotage Authority

 

Member

 
MacLeod-Archer, Lee Anne, Q.C. 2014-455

Supreme Court of Nova Scotia (Family Division)

 

Judge

 

Nova Scotia Court of Appeal

 

Judge ex officio

 
Marcotte, The Hon. Geneviève 2014-445

Court of Appeal of the Province of Quebec

 

Puisne Judge

 
Masse, the Hon. Chantal 2014-451

Superior Court for the district of Longueuil, in the Province of Quebec

 

Puisne Judge

 
McFarlane, Audrey 2014-387

Canadian Centre on Substance Abuse

 

Director of the Board of Directors

 
Monnin, The Hon. Michel A. 2014-370

Government of Manitoba

 

Administrator

 

April 7 to April 11, 2014

 
Murphy, George L., Q.C. 2014-458

Supreme Court of Newfoundland and Labrador — Trial Division

 

Judge

 

Court of Appeal of the Supreme Court of Newfoundland and Labrador

 

Member ex officio

 
Natural Sciences and Engineering Research Council  

Member and Vice-President

 

Edwards, The Hon. James S., P.C.

2014-403

Members

 

Kustan, Ed H.

2014-401

Meech, John Athol

2014-402
Owen, John R. 2014-453

Tax Court of Canada

 

Judge

 
Payments in Lieu of Taxes Act  

Members — Advisory panel

 

L’Écuyer, Mathieu — Quebec

2014-392

Gerein, Gerald Joseph John — Yukon

2014-393
Pelletier, Commander 2014-390

Military Judge

 
Phillips, The Hon. Kevin B. 2014-454

Superior Court of Justice in and for the Province of Ontario

 

Judge

 

Court of Appeal for Ontario

 

Judge ex officio

 
Plamondon, Bob 2014-388

National Capital Commission

 

Member of the Board of Directors

 
Rochon, Paul 2014-459

Deputy Minister of Finance

 
Rooney, Jane 2014-409

Financial Consumer Agency of Canada

 

Financial Literacy Leader

 
Sahtu Dene and Metis Land Claim Settlement Act  

Renewable Resources Board

 

Members

 

Allen, Lesley

2014-418

Bobinski, Patrick

2014-419
Sicuro, Louise, C.M. 2014-464

National Arts Centre Corporation

 

Member of the Board of Trustees

 
Social Sciences and Humanities Research Council  

Members

 

Horgan, Patrick

2014-406

Gibbs, Robert B.

2014-404

Dybenko, Ginny

2014-405
Social Security Tribunal  

Income Security Section

 

Full-time members

 

Ahlfeld, Pamila

2014-398

Rai, Oudit Narine

2014-397

Steinberg, Jeffrey Stuart

2014-399
Stannard, Glenn Michael 2014-407

Military Police Complaints Commission

 

Full-time Chairperson

 
Superior Court for the district of Montréal, in the Province of Quebec  

Puisne Judges

 

Armstrong, Marie-Claude

2014-450

Bisson, Donald

2014-449

Dulude, The Hon. France

2014-452

Lamarche, Chantal

2014-448
Superior Court for the district of Québec, in the Province of Quebec  

Puisne Judges

 

de Blois, Guy

2014-447

Dumais, Daniel

2014-446
Transportation Appeal Tribunal of Canada  

Part-time members

 

Brooks, Christopher James

2014-414

Caldwell, Bradley Morris

2014-413

Sehmer, John Michael

2014-411

Villemaire, Yves

2014-412
Wesolowski, Frederick N. 2014-389

Parole Board of Canada

 

Part-time member

 
Wilkins, Carolyn 2014-408

Bank of Canada

 

Deputy Governor

 
Wilson, James Brook 2014-421

Treaty Relations Commission of Manitoba

 

Treaty Commissioner

 
Vézina, Alain F. 2014-416

International Council for the Exploration of the Sea

 

Canadian delegate

 
Zablocki, Martin 2014-465

Canadian Commercial Corporation

 

President

 

April 25, 2014

DIANE BÉLANGER
Official Documents Registrar

[18-1-o]

DEPARTMENT OF INDUSTRY

RADIOCOMMUNICATION ACT

Notice No. SMSE-006-14 — Release of new issues of RSS-195 and SRSP-516

Notice is hereby given by Industry Canada that the following documents come into force immediately:

  • Radio Standards Specification RSS-195, Issue 2: Wireless Communication Service (WCS) Equipment Operating in the Bands 2305-2320 MHz and 2345-2360 MHz, which sets out the certification requirements for radio transmitters of WCS systems operating in these bands; and
  • Standard Radio System Plan SRSP-516, Issue 1: Technical Requirements for Wireless Communication Service (WCS) Operating in the Bands 2305-2320 MHz and 2345-2360 MHz, which sets out the minimum technical requirements for the efficient utilization of these bands.

The above documents were published to reflect recent changes in technical and operational requirements for WCS equipment.

General information

These documents have been coordinated with industry through the Radio Advisory Board of Canada (RABC).

The Radio Equipment Technical Standards Lists will be amended to reflect the above changes.

Submitting comments

Interested parties are requested to provide their comments within 120 days of the date of publication of this notice in electronic format (Microsoft Word or Adobe PDF) to the Manager, Mobile Spectrum Planning, for the SRSP (srsp.pnrh@ic.gc.ca), and to the Manager, Radio Equipment Standards (res.nmr@ic.gc.ca), for the RSS.

All submissions received by the close of the comment period will be posted on Industry Canada’s Spectrum Management and Telecommunications Web site at www.ic.gc.ca/spectrum.

Obtaining copies

Copies of this notice and of documents referred to herein are available electronically on Industry Canada’s Spectrum Management and Telecommunications Web site at www.ic.gc.ca/spectrum.

Official versions of Canada Gazette notices can be viewed at www.gazette.gc.ca/rp-pr/p1/index-eng.html.

April 4, 2014

MARC DUPUIS
Director General
Engineering, Planning and Standards Branch

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