2007 annual report aveiro investment corp. - First West Properties

NOTES TO THE FINANCIAL STATEMENTS June 30, 2007 and 2006
3. SIGNIFICANT ACCOUNTING POLICIES (continued)
(i) Recent accounting pronouncements (continued)
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.
4. PROPERTY HELD FOR DEVELOPMENT
Property held for development includes bare land in Airdrie and Lethbridge, Alberta. Property held for development includes
$219,752 of interest and $1,282 of other carrying charges capitalized during the year.
On January 1, 2007, the Company acquired real property for $7,750,000 from a company (the “Vendor”). Two individuals,
independent of the Vendor’s owner, were offi cers of the Vendor during negotiations to purchase the property from the Vendor.
The two individuals were directors and offi cers of the Company at the time the Company and the Vendor entered into an
agreement of purchase and sale. The two individuals remained as directors and offi cers subsequent to closing. The transaction
terms were determined based on, among other things, negotiation between the Company and Vendor and an independent
third party valuation.
5. INCOME-PRODUCING PROPERTY
2007
Accumulated
2006
Cost Amortization Net Book Value Net Book Value
Building $ 4,350,256 $ 3,629 $ 4,346,627 $ –
Land 1,229,153 – 1,229,153 –
6. EQUIPMENT
38 | Aveiro Investment Corp. | 2007 Annual Report
$ 5,579,409 $ 3,629 $ 5,575,780 $ –
2007
Accumulated
2006
Cost Amortization Net Book Value Net Book Value
Computer hardware $ 22,395 $ 947 $ 21,448 $ –
Offi ce equipment 30,873 959 29,914 –
Software 875 157 718 –
$ 54,143 $ 2,063 $ 52,080 $ –