Schedule 5.8 - P3 Financial Liability, P3 Performance Obligation
This schedule tracks the continuity of financial liabilities and performance obligations related to Public Private Partnerships (P3) during the year.
School boards must input P3 liability activity, specifically the adjustments, additions, disposals, principal payments towards the financial liabilities, and revenue recognized on performance obligations from September 1, 2025 to August 31, 2026.
Lines are provided for each of the following asset classes:
- Land improvements
- Buildings - 40 years
- Other Buildings
- CIP - Buildings - 40 years
- CIP - Buildings - 20 years
- CIP - Buildings - Other
- Other
The Other line should be used if a school board has a P3 arrangement that does not fit into the land improvements or building asset classes available on the form. If an amount is entered here, a description should also be input in the Description column.
According to Public Sector Accounting Standard (PSAS) section PS 3160, P3s are an alternative finance and procurement model where the school board uses a private sector partner to design, build, acquire or better (i.e., procure) infrastructure. In exchange, the school board provides a contractual right to the private partner to either:
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receive cash or other financial assets, resulting in a financial liability and/or,
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earn revenue from third-party users or access to another revenue-generating asset, resulting in a performance obligation.
Schedule 5.8 is divided into two sections to report activity from each of these types of obligations separately.
The financial liability is measured at amortized cost using the effective interest rate method. The financial liability is discounted to its amortized cost using the implicit contract rate. Where the implicit contract rate is not determinable, the weighted average cost of capital of the P3 arrangement or the private sector partner’s cost of capital must be used to discount the financial liability. The carrying amount of the financial liability is reduced as payments are made.
For a performance obligation, revenue should be recognized, and the performance obligation reduced, according to PSAS section PS 3400 Revenue. The timing of the revenue recognition is determined by the terms and conditions of the P3 arrangement.
For more detailed information on the reporting and accounting of P3, please refer to the ministry’s Public Private Partnerships Accounting Policies & Implementation Guide.
Column 1: Financial Liability/Performance Obligation - Opening Balance September 1
The opening balances are pre-populated from the 2024-25 board-submitted Revised Estimates closing balances. Adjustments are not permitted in this column.
Column 2: Financial Liability/Performance Obligation - Adjustments to Opening Balance
This column may be used to adjust the loaded opening balances to the latest data available. In Revised Estimates, the adjustment, if any, plus the pre-loaded opening balance should agree to the closing balance of the prior year Financial Statements.
Column 3: Financial Liability/Performance Obligation - Additions
Input any additions to either the financial liabilities or performance obligations, in their respective sections, that were made in the year as a result of any new P3 agreements.
Column 4: Financial Liability/Performance Obligation - Remeasurement Adjustments
Input any remeasurement adjustments made to either the financial liabilities or performance obligations, in their respective sections, that were made in the year due to modifications to agreement terms.
Column 5: Financial Liability/Performance Obligation - Disposals
Input any disposals of either the financial liabilities or performance obligations, in their respective sections, that were made in the year. Negative values should be entered in this column.
Column 6:
Financial Liability - Principal Payments
Input payments made towards the principal of the outstanding financial liability. Negative values should be entered in this column.
Performance Obligation - Revenue Recognized
Input the amount of the performance obligation reduced in the year according to section PS 3400 Revenue. The timing of the revenue recognition is determined by the terms and conditions of the P3 arrangement. Negative values should be entered in this column.
Column 7: Financial Liability/Performance Obligation - Closing Balance August 31
This column is calculated as the sum of columns 1 to 6.