Are you at a stage where you want to ensure your business’s growth? You will need financing to make it happen.

It’s important to prepare yourself properly before meeting with a financial lender so you can put all chances on your side to obtain the desired financing.

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Adviser alert − June 2018

The Grant Thornton International IFRS team has published the 2018 version of the IFRS Example Interim Consolidated Financial Statements, which has been revised and updated to reflect changes in IAS 34 Interim Financial Reporting (IAS 34) and other IFRS that are effective for the year ending December 31, 2018.

In particular, they reflect the adoption of IFRS 9 Financial Instruments and IFRS 15 Revenue from contracts with customers, which are effective for annual accounting periods beginning on or after January 1, 2018.

The Interim Financial Statements illustrate a six-month accounting period beginning on January 1, 2018. They are based on the activities and results of Illustrative Corporation Ltd. and its subsidiaries (the “Group”) – a fictional consulting, service and retail entity that has been preparing IFRS financial statements for several years. The Group produces half-yearly interim financial reports in accordance with IAS 34 on June 30, 2018.

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No sooner does the final bell for the school year ring than thousands of young people start wondering how they’ll spend their summer.

For older students at CEGEP or university, summer is generally the time for a job and the chance to make a bit of money.

For the younger ones, summer usually means having fun. Many will go to summer camp (day, sports, science, arts and crafts or music camps) with a full day of supervised activities. Wherever they go, the costs could mount up, especially if the child is away from home for one or more weeks.

From a tax perspective, summer camp costs are similar to child care costs. They entitle the parents to a tax benefit, either as a deduction for federal purposes or a refundable tax credit for Quebec purposes. Let’s take a closer look at these rules.

Federal benefit

The federal benefit is a deduction that generally reduces the income of the lower-income parent. To give entitlement to the deduction, the eligible child care costs cannot be greater than either of the three following amounts. You should remember though that the deduction cannot be greater than two-thirds of the income earned by the parent claiming it:

  • $8,000 per child aged six and under at the end of 2018 (born in 2012 or after);
  • $11,000 per child with a severe and prolonged impairment;
  • $5,000 per child between the ages of 7 and 16 (over the age of 16 for a child with a disability).

Since summer camp costs are added to annual child care expenses, eligible expenses are limited to these three amounts.

Quebec benefit

Quebec has opted for a refundable tax credit at a rate that is based on the parents’ family income. The credit rate varies between 36% and 75% and can be claimed by either parent, regardless of who actually paid the costs. Eligible costs are similar to those that qualify for federal purposes, subject to the following two exceptions: there is no limit on earned income and the eligible annual amount for a child aged six and under is $9,000.

Overnight summer camp

What may not be as well understood are the rules regarding the applicable limit when a child goes to an overnight camp. When the child stays overnight, the eligible weekly costs are significantly reduced. The previous age-based limits do not apply. The following amounts apply and give entitlement to the federal deduction and the Quebec refundable tax credit:

  • $200 per week per child aged six and under;
  • $275 per week per child with a severe and prolonged impairment;
  • $125 per week per child between the ages of 7 and 16 (over the age of 16 for a child with a disability).


For federal purposes, child care expenses may sometimes be deducted by the higher-income parent, for example when the spouse is a full-time student or is hospitalized.

Even if you have no tax payable, in Quebec, you can obtain a refund for your credit entitlement, whereas for federal purposes, the deduction can only be used to reduce taxable income and not for a refund.

This article was published in French in Journal de Montréal and Journal de Québec on 2018, June 20th.

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University competitions allow students to excel and contribute to research in technological solutions that benefit the industry.

In engineering, as in many other scientific fields, there are numerous university science and technological student clubs where our future professionals apply their knowledge for the benefit of technological advancement.

In some universities like the École de technologie supérieure (ÉTS), there can be close to 30 student clubs in various technological fields relating to human-powered submarines, wind-powered vehicles, concrete canoe races and many others.

These student teams generally participate in inter-university scientific competitions year after year in order to illustrate their advancements, in the hope of winning prestigious awards. The knowledge acquired during university is therefore showcased in a real project.

The Baja

One of the student clubs present in many Quebec universities is the Baja, designed for participation in a championship organized by the Society of Automotive Engineers with the purpose of developing a single ATV prototype.

To participate, each team must design and make the prototype based on rules established by the organizers to ensure the safety of all. As part of the championship, each team is restricted to using the same motor, a Briggs & Stratton 10 hp, the type usually used in snow blowers. They must build their vehicle around this motor by optimizing the chassis, suspension, powertrain and many other sub-systems.

The championship takes place during the school year from mid-April to mid-June. The teams have about eight months to design and make their vehicle and conduct all the necessary testing.

Every year, three competitions take place in North America, with representatives from more than 200 universities from around the world to compete for the Mike Schmidt Memorial Iron Team Award. This award is given to the team that accumulated the most points in the competitions.

Raymond Chabot Grant Thornton - image
Raymond Chabot Grant Thornton - image

ÉTS team in first place

In 2017, the ÉTS team placed first in two competitions and second place overall, the best result for a Canadian university this year. Over time, the ÉTS team members have come up with numerous technological advancements to perfect the vehicle.

As these projects are rarely overseen by professors, the most experienced students take the initiative to develop or improve one of the vehicle’s sub-systems. Using literature and their technical experience, new notions are perfected and tested, often retaining more conservative safety features from previous versions.

In previous years, many major projects were developed by the ÉTS team, such as:

  • Complete suspension analysis using strain gauges;
  • Complete optimization of the transmission box;
  • Optimization of data acquisition systems.

Last year, the team made significant improvements thanks to the development of a new application for a Continuously Variable Transmission (CVT), i.e. an Electronic Variable Transmission (EVT).

CVT and EVT technologies

CVTs modify the transmission ratio thanks to a pulley-belt system. The pulley varies in width through a combination of weights and springs that utilize centrifugal acceleration. The weights and springs are determined to optimize transmission in a pre-determined power range.

With an EVT, the benefits stem from the fact that transmission ratios are changed using an actuator controller that optimizes at the ideal power at all times and provides the maximum amount of power possible from the motor, regardless of conditions.

All situations can be optimized using a mechanical CVT. However, it only maximizes one power range, which represents a compromise. EVT technology therefore allows you to handle situations that otherwise would be impossible to control, such as controlled deceleration. The technology is based on the fact that a motor is especially efficient at a given rotation speed. As a result, the transmission ratio can be adjusted to maintain this rotation speed as a target point. Therefore, it’s possible to read fluctuations, understand the situation and predict the vehicle’s behaviour.

From ÉTS to B-Cinq Technologie

After this student project, several members of the Baja team launched B-Cinq Technologie to develop this technology on a larger scale. Such an advancement could easily be incorporated into off-road vehicles in the coming years since most already use a mechanical CVT principle. This is a good example of how far university student club projects can lead.

While one of the premises for designing race cars is being as light as possible and that the built-in electronics are, according to many, not very useful when racing, ÉTS’s Baja team has gone against the current.

For many years, the team has been promoting the idea that technological evolution happens through the acquisition of data, which makes it possible to better understand a vehicle’s behaviour in multiple situations. Improvements can therefore continue to be made and we can continue winning awards!

This article was drafted by Guillaume Dalpé, an ETS mechanical engineering graduate, and trainee with Raymond Chabot Grant Thornton’s Innovation and Technical Development Financing group in the winter of 2018.