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Queen's University

Revenue and Cost Recoveries

The Importance of Distinguishing Between Internal and External Transactions

All transactions, regardless of whether they are considered "internal" or "external", must comply with certain financial management objectives (e.g. timely recording of transactions and adequate supporting documentation).

The ability to track and report on "external" financial transactions separately from those considered "internal" is important for:

University external financial reporting, so that:

  • revenues and expenses are not overstated due to the inclusion of "internal" financial transactions
  • the Queen’s annual financial statements are prepared in accordance with Canadian Generally Accepted Accounting Principles (GAAP)

Faculties and departments, so that:

  • analysis can be done to assess how much of the reported revenue is being generated from increased cash flows versus the "reallocation" of existing cash flows among internal units.





Kingston, Ontario, Canada. K7L 3N6. 613.533.2000