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1. Prepayments include:
2. For accrual accounting purposes:
3. Development costs will not be recorded as a deferred charge, but will be expensed in the period in which they are incurred. Costs related to in-house developed software will be accounted for in accordance with the provisions of Treasury Board Accounting Standardá3.1.1 and not as a component of research and development costs.
4. Amortization of any prepaid expense or deferred charge will be charged as an expense on a systematic and rationalábasis.
5. The balance of any prepaid expense or deferred charge shall be written off to expense in the period in which it is determined that there are no future benefits remaining.
6. Prepayments of transfers will be charged to expense when the recipient has met all required criteria including eligible costs. Should it be determined that the recipient is no longer eligible for the transfer payment or eligible costs will not be incurred, prepayments will be recorded as a receivable.
7. Prepayments will be reflected on the Statement of Financial Position as non-financial assets. Major items should be shown separately or disclosed in the notes and schedules to the financial statements.