Working Capital

Working Capital (Current assets and Current Liabilities) Requirements

Registrants are required (pursuant to section 24 subsection 2 of the Regulation 26/05 and its amendments under the regulation 101/20) to maintain current assets greater than its current liabilities (i.e. positive working capital).  Working capital is calculated as: Current assets less Current liabilities. 

Working capital is calculated in accordance with CPA Canada Standards, with the exception that related party and shareholder balances are excluded from the working capital, as well as the value of security that TICO holds in relation to the $10,000 or $20,000 security from all new registrants. 

Note: Effective July 1, 2016, a working capital exemption exists for lower risk businesses that promote tourism and are closely tied to the government.  For more information, contact TICO.