May 10, 2020

Preparing your financial statements using GIFI

The GIFI codes identify items that are usually found on a corporation’s financial statement (balance sheets, income statements, and statements of retained earnings). Each item is assigned its own unique code. This allows us to collect financial statement information in a standardized format. For example, the item “Cash” is assigned code 1001 and “Office expenses” is assigned code 8810.

Your method of preparing and filing your T2 return determines how your financial statement information is prepared using the GIFI codes.

Include the same level of detail using the GIFI codes as you would with a traditional financial statement. For example, if your corporation’s financial statement includes 40 items, we expect to see the same number of GIFI codes.

With your financial statement, remember to complete the following:

Preparing your return using CRA-certified T2 software

Whether you are filing your return electronically using Corporation Internet Filing or by mailing the T2 Bar Code Return, your software provides the appropriate space to complete your financial statement information using GIFI codes.

Choose a GIFI code for each item you report on your financial statement. Enter only the item code and dollar amount.

Sending notes to your financial statement

If you have notes to your financial statement:

  • If you are filing by Corporation Internet Filing, enter the details in the notes to the financial statements in the GIFI section of your software program.
  • If you are printing and mailing a T2 Bar Code Return, send your notes on a separate piece of paper with your T2 Bar Code Return.

Preparing your return using CRA-issued paper forms

If you use paper forms to file your T2 return, you can prepare your financial statement as follows:

Corporations that are inactive throughout the tax year and that do not have balance sheet or income statement information to report are no longer required to attach schedules 100, 125, and 141 to their T2 return. However, they will be accepted if filed.

Sending notes to your financial statement

Send any notes regarding your financial statement on a separate piece of paper with your return.

Completing Schedule 141, Notes Checklist

You have to complete Schedule 141, Notes Checklist, even if you do not have any notes to your financial statement.

Whether you are filing your return electronically using Corporation Internet Filing or by mailing the T2 Bar Code Return, Schedule 141 is completed within the software.

See What is Schedule 141, Notes Checklist for more information.

Forms and publications

Original source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-income-tax-return/completing-your-corporation-income-tax-t2-return/general-index-financial-information-gifi/preparing-your-financial-statements-using-gifi.html

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