for the year ended March 31, 2004

Background

The Ontario Financing Authority (the “OFA”) was established as an agency of the Crown, on November 15, 1993, by the Capital Investment Plan Act, 1993 (the "Act"). In accordance with the Act, the OFA's objects are:

• to assist public bodies and the Province of Ontario to borrow and invest money;
• to develop and carry out financing programs, issue securities, manage cash, currency and other financial risks on behalf of the Province, or any public body;
• to provide such other financial services as are considered advantageous to the Province or any public body;
• any additional objects as directed by the Lieutenant Governor in Council.

The OFA is a corporation established under the laws of Ontario. The OFA is exempt from federal and provincial income taxes under paragraph 149(1)(d) of the Income Tax Act of Canada.

1. Significant Accounting Policies

1. General: The financial statements are prepared in accordance with Canadian generally accepted accounting principles prescribed by the Canadian Institute of Chartered Accountants (CICA).



2. Capital assets: Capital assets are stated at cost. Amortization is provided using the straight-line method over the estimated useful life of the asset, as listed below, starting in the year of acquisition, i.e., a half year depreciation is charged in the year of acquisition and a half year in the year of disposal, irrespective of the date of acquisition or disposal.
   
   

   Furniture and equipment	5 years
   Computer hardware	3 years
   Leasehold improvements	remaining life of lease



3. Measurement uncertainty: The preparation of the financial statements of the OFA requires management to make estimates and assumptions based on information available at the time of preparation of the financial statements and will be adjusted annually to reflect new information as it becomes available.