Tourism Saskatchewan - IndustryMatters.com

YEAR ENDED SEPTEMBER 30, 2011
1. DESCRIPTION OF BUSINESS
The Tourism Authority (the “Authority”), operating as
Tourism Saskatchewan, was incorporated as a nonprofit
organization under the Tourism Authority Act and
commenced operations on October 1, 1994. The
Authority was formed to promote and develop tourism
in Saskatchewan on behalf of the tourism industry and
the Government of Saskatchewan.
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in
accordance with Canadian generally accepted
accounting principles:
a) Revenue Recognition
The Authority follows the deferral method of
accounting for grant contributions. Unrestricted
contributions are recognized as revenue when
received or receivable if the amount to be received
can be reasonably estimated, collection is reasonably
assured, and the expenses relating to the contribution
are incurred.
Revenue received by the Authority in advance of the
actual performance of services is deferred and is
recorded as unearned revenue.
Partnership, Advertising, Listing, and Membership
revenue is recognized as earned. Funds received for
services that relate to the future, are deferred and
recognized as revenue when earned.
Interest is recognized as earned.
Retail sales are recognized as revenue on the date
of sale.
b) Cash
Cash comprises monies on deposit and is recognized
at their fair value. Fair value is approximated by the
instrument’s initial cost in a transaction between
unrelated parties.
c) Inventory
Inventory is valued at the lower of cost and net
realizable value.
d) Capital Assets
Capital assets are recorded at cost and are
amortized over their estimated useful lives.
Amortization expense is calculated using the straightline
method at the following annual rates:
Photo library 10% to 20%
Furniture and equipment 10% to 20%
Computer equipment and systems 25% to 33%
Leasehold improvements 10%
Signs and displays 20%
Video and video footage 33%
e) Income Taxes
The Authority is incorporated as a non-profit
organization and is exempt from income taxes under
paragraph 149(1)(l) of the Income Tax Act.
f) Use of Estimates
The preparation of financial statements in
accordance with Canadian generally accepted
accounting principles requires management to make
estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of
revenues and expenses during the reporting period.
Actual results may vary from the current estimates.
Accounts receivable are stated after evaluation as to
the collectability and an appropriate allowance for
doubtful accounts is provided where considered
necessary. Amortization is based on the estimated
useful lives of the asset. These estimates and
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