The accounting treatment is based on the business structure of a specific project, so it may vary between projects. For the ring road and schools projects to date, the GOA acquired assets, (roads and bridges) or had assets constructed for a Supported Infrastructure Organization (SIO) to be owned by the SIO (for example, school boards). Accordingly the GOA recognizes assets (roads and bridges) or capital expenses (schools) and the corresponding liabilities. The assets or capital expenses were recognized as construction progressed. This is because the ownership of the land and all improvements belong to the public entity, and GOA has an obligation to compensate the proponent for work performed to date (see project contracts for details). By the time construction is complete, the assets or capital expenses and the corresponding liabilities are fully recognized. The value of the assets or capital expenses is determined by the provisions of PSG-2 plus the book value of any provincial capital contributions. PSG-2 states that "the value of the leased tangible capital asset and the amount of the lease liability, recorded at the beginning of the lease term, would be the present value of the minimum lease payments."1
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1 Public Sector Accounting Handbook, Canadian Institute of Chartered Accountants, PSG-2 Leased Tangible Capital Assets, section 14