2007 annual report aveiro investment corp. - First West Properties

The rates are determined based on market factors and the type of
structure specifi c to the properties.
Property Held For Development
Property under development includes initial acquisition costs,
other direct costs and realty taxes, interest, and operating
expenses net of revenues during the period of development.
NEW ACCOUNTING PRONOUNCEMENTS
In 2005, the Canadian Institute of Chartered Accountants (“CICA”)
issued three new accounting standards: Handbook Section 1530,
“Comprehensive Income”, Handbook Section 3855, “Financial
Instruments – Recognition and Measurement”, and Handbook
Section 3865, “Hedges”. The new standards introduce the
Statement of Comprehensive Income which is used to temporarily
provide for gains and losses including foreign currency translation
adjustments for net investments of self sustaining foreign
operations and other amounts arising from changes in fair value of
investments categorized as available for sale until they are realized
and recorded in earnings. As well, all other fi nancial instruments,
including derivatives, are to be included in the Company’s balance
sheet and measured at fair value. In certain situations assets that
are classifi ed as held to maturity will continue to be measured at
cost or amortized cost.
The new standards also include further clarifi cation on the
application of hedge accounting which will have no impact on
the Company’s fi nancial statements since the Company does
not intend to enter into any hedging relationships. These new
standards are effective for fi scal years beginning on or after
October 1, 2006 and early adoption is permitted. The Company
has assessed the impact of these new accounting standards on
the fi nancial statements at July 1, 2007 and has determined that
these standards will not have a material impact.
In July of 2006, the CICA replaced Handbook Section 1506,
“Accounting Changes” with a new Section 1506, “Accounting
Changes” to substantially harmonize with International Accounting
Standards for the accounting and disclosure of changes in
accounting policies, estimates and errors. Under the new
standard, accounting changes should be applied retrospectively
unless otherwise permitted or where impracticable to determine.
In addition, voluntary changes in accounting policy are made
only if they result in the fi nancial statements providing reliable
and more relevant information. New disclosure is required for
changes in accounting policies, changes in accounting estimates
and correction of errors. The standard is effective for fi scal years
beginning on or after January 1, 2007. The Company does not
expect the application of this revised standard to have a material
impact on the fi nancial statements.
In December 2006, the CICA issued two new accounting standards:
Handbook Section 3862, “Financial Instruments – Disclosures”
and Section 3863, “Financial Instruments – Presentation”. These
new standards will require increased disclosure of fi nancial
instruments with particular emphasis on the risks associated
with recognized and unrecognized fi nancial instruments and how
those risks are managed. The standards are effective for fi scal
years beginning on or after October 1, 2007 and the Company is
currently considering the additional disclosures, if any, required in
future fi nancial statements.
In December 2006, the CICA issued a new accounting standard:
Handbook Section 1535, “Capital Disclosures”, requiring
disclosure of information about an entity’s capital and the
objectives, policies, and processes for managing capital. The
standard is effective for fi scal years beginning on or after October
1, 2007 and the Company is currently considering the additional
disclosures, if any, required in future fi nancial statements.
Aveiro Investment Corp. | 2007 Annual Report | 29