2012 City of Prince George Annual Report

CITY OF
PRINCE GEORGE
CITY OF PRINCE GEORGE 2012 ANNUAL MUNICIPAL REPORT
TOURISM PRINCE GEORGE SOCIETY
Notes to Financial Statements
Year ended December 31, 2012, with comparative information for 2011
TOURISM PRINCE GEORGE SOCIETY
Notes to Financial Statements (continued)
Year ended December 31, 2012
Nature of operations:
1. Significant accounting policies (continued):
The purpose of the Tourism Prince George Society (the "Society") is to promote and market tourism
in the Prince George area. The Society evaluates, develops and implements marketing programs on
behalf of various industry stakeholders. The Society is also responsible for visitor services activities
within the Prince George area. The Society is incorporated under the Society Act (British Columbia)
and is a non-profit organization pursuant to Section 149(1)(l) of the Income Tax Act.
1. Significant accounting policies:
These financial statements are prepared in accordance with Canadian accounting standards for
not-for-profit organizations. The Society's significant accounting policies are as follows:
(d)
(e)
Revenue recognition:
The Society follows the deferral method of accounting for contributions. Restricted
contributions are recognized as revenue in the year in which the related expenditures are
incurred. Unrestricted contributions are recognized as revenue when received or
receivable if the amount to be received can be reasonably estimated and collection is
reasonably ensured. Advertising revenue is recognized as revenue to the extent received
or receivable. Advertising revenue received in advance for the following year is recorded
as deferred revenue.
Use of estimates:
(a)
Investments:
Restricted investments are stated at fair value and consist of short-term GIC's. In
determining fair values, adjustments have not been made for transaction costs. The
difference between the fair value and cost of investments at the beginning and end of each
year is reflected under the internally restricted column in the statement of changes in net
assets.
The preparation of the financial statements in conformity with Canadian accounting
standards for not-for-profit organizations 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 revenue and expenses during the year. Significant items subject to such
estimates and assumptions include the carrying amounts of capital assets and equipment
under capital lease. Actual results could differ from those estimates.
(b)
Inventory:
(f)
Financial instruments:
(c)
Inventory is valued at the lower of cost and net realizable value, with cost determined on a
first-in, first-out basis.
Capital assets:
Financial instruments are recorded at fair value on initial recognition and are subsequently
measured at fair value. All other financial instruments are subsequently recorded at cost
or amortized cost, unless management has elected to carry the instruments at fair value.
The Society has not elected to carry any such financial instruments at fair value.
Capital assets are stated at cost, less accumulated amortization. Amortization is provided
using the declining balance method and following annual rates:
Asset
Rate
Transaction costs incurred on the acquisition of financial instruments measured
subsequently at fair value are expensed as incurred. All other financial instruments are
adjusted by transaction costs incurred on acquisition and financing costs, which are
amortized using the effective interest rate method.
Computer 55%
Equipment under capital lease 20%
Furniture and fixtures 20%
Vehicles 30%
Capital assets that no longer contribute to the Society's ability to provide services, its
carrying amount is written down to its residual value.
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www.princegeorge.ca
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