Information for Accountants

This section provides information to accountants who are preparing Financial Statements or Verification Statements for TICO registrants. The most relevant sections of the Regulation that relate to financial criteria are sections 22 of the Regulation 101/20, section 27 of Regulation 26/05 as well as the amendments pertaining to section 24 in the Regulation 101/20.

Due Date

The year end Financial Statements or Verification Statements are due within three months after the registrant’s year end. Should a registrant fail to file by the due date, the Registrar may issue a proposal to revoke the registrant’s registration.

Type of Financial Information Required

The year end Financial Statements must be accompanied by a Review Engagement Report for businesses with annual Gross Ontario Sales equal to or greater than $2 million based on the prior year Gross Ontario Sales.   It must be prepared by a Licensed Public Accountant (LPA), a person licensed under the Public Accountancy Act, 2004. 

Business with Gross Ontario Sales under $2 million do not require assurance from an LPA.   Instead, a Verification Statement can be internally prepared by the Registrant.  The verification statement for downloading can be found here.

Please note that TICO does check to ensure the preparer of the Review Engagement Report is properly licensed.

What Should the Financial Statements Include?

The financial statements shall include a balance sheet, income statement, cashflow, disclosure of Gross Ontario Sales, customer deposit liability pursuant to section 27 of the Regulation, supplier prepayments (if applicable), and trust bank account balance.

Disclosure of Gross Ontario Sales

Gross Ontario Sales include all sales made by the registrant during the period being reported. This includes all travel sales invoiced to the customer, regardless of whether the customer funds are received directly by the Registrants or via credit where the payment flows directly to the supplier.

However, please note that Registrants who operate as wholesalers and have wholesale sales, which are sales to Retail and/or Wholesale agencies, are required to report Gross Ontario Sales to Retail or Wholesale agencies operating in Ontario only.  Sales to Retail and Wholesale agencies operating outside of Ontario should be excluded.   This exception only applies to registrants that have Wholesale Sales.  All retail sales or sales to end consumers are considered Gross Ontario Sales.

The Gross Ontario Sales disclosed in the financial statements are compared by TICO to the sales reported for the purpose of contributions made to the Compensation Fund.  Discrepancy in the sales reported will be addressed with the registrant. 

Gross Ontario Sales can be disclosed on the income statement or in a note to the financial statements.

Disclosure of Trust Position

Disclosure of the customer deposit liability balance, supplier prepaid balance (if applicable) and the trust bank account balances can either be stated as line items on the balance sheet or in the notes to the financial statements.

If the disclosure is on the balance sheet the balance of funds held in trust should be disclosed separately from other cash or bank assets as well as any prepayments to suppliers that relate to the customer deposits. The customer deposits liability at the balance sheet date should be disclosed in the liability section. Customer deposits liability represent funds received not yet passed to suppliers (including gift certificates not yet redeemed).

If the disclosure is made in the notes to the financial statements, the balance in the trust bank accounts should be disclosed along with the balance in customer deposits liability and any trust account related balance in supplier prepayments.  Even if there are no customer deposits on hand, a nil balance should be disclosed.