2022-23 SGI CANADA Annual Report
Investments
The Corporation records investment purchases and sales on a trade-date basis, being the date when the
transactions are entered into. Financial assets are de-recognized when the rights to receive cash flows from them
have expired, or when the Corporation has transferred substantially all risks and rewards of ownership.
Investments under securities lending program
Securities lending transactions are entered into on a collateralized basis. The securities lent are not de-recognized
on the Consolidated Statement of Financial Position given that the risks and rewards of ownership are not
transferred from the Corporation to the counterparties in the course of such transactions. The securities are
reported separately on the Consolidated Statement of Financial Position.
Securities lending transactions are secured against high grade collateral, typically government bonds and main
index equities.
Investment earnings
The Corporation recognizes interest and premium financing as earned, dividends when declared, investment fund
revenue when a distribution is declared, realized gains and losses on investments when the investment has been
sold, and unrealized gains and losses based on changes in market value of the investments held at the year-end date.
Realized gains and losses represent the difference between the amounts received through the sale of investments
and their respective cost base.
Interest revenue includes amortization of any premium or discount recognized at the date of purchase of the
security. Amortization is calculated using the effective interest method. Interest is generally receivable on a
semi-annual basis.
Direct investment expenses, such as external custodial, investment management and investment consultant
expenses, are recorded against investment earnings.
Foreign currency translation
Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate in effect at
the year-end date. Revenues and expenses are translated at the exchange rate in effect at the transaction date.
Unrealized foreign exchange gains and/or losses arising on monetary and non-monetary investments designated
as fair value through profit and loss are recognized in investment earnings. Unrealized gains and/or losses arising
on translation are charged to operations in the current year. Translation gains and/or losses related to other financial
assets and liabilities are charged to operations in the current year.
Premiums written
The Corporation's policies have all been classified upon inception as insurance contracts. An insurance contract
transfers significant risk and, upon the occurrence of the insured event, causes the insurer to make a benefit
payment to the insured party. The sale of policies generates premiums written that are taken into income as
net premiums earned over the terms of the related policies, no longer than 12 months. The portion of premiums
relating to the unexpired term of each policy is recorded as an unearned premium liability on the Consolidated
Statement of Financial Position.
2022-23 SGI CANADA Annual Report 43View entire presentation