Eligible entities received annual governmental financial assistance by virtue of the Industrial Research Assistance Program, and the Tax Credit for the Development of E-Business based, in whole or in part, on their labour expenditures. For accounting purposes, some of the eligible entities add the estimated total financial assistance they expect to receive directly to their revenue, although this estimate may differ from the financial assistance ultimately received. Regarding whether the assistance was "qualifying revenue," CRA stated:
Consequently, to the extent that Financial Assistance of an eligible entity qualifies as qualifying revenue within the meaning of subsection 125.7(1) for a particular period and that qualifying revenue is determined in accordance with the eligible entity's normal accounting practices, Financial Assistance will generally be included in its qualifying revenue for that particular period. However, Financial Assistance is not included in the qualifying revenue (as defined in subsection 125.7(1)) of an eligible entity if the normal accounting practice of the eligible entity is to record Financial Assistance as a reduction in expenses.