June 15, 2009 - District of Mission

Municipal Forest — 50th Year Anniversary
Notes to the Consolidated Financial Statements
for the year ended December 31, 2008
Financial Statements
123
iv) Cemetery Perpetual Care Trust Fund
This Fund is intended to provide earnings that can be used for the upkeep of the
cemetery, and has been established pursuant to the Cemetery Care Act. Interest
earnings on the Fund balance are transferred to general operations and are used for
cemetery maintenance per the Act. The Cemetery Perpetual Care Fund is excluded
from the District's Consolidated Financial Statements, per PSAB guidelines.
b) Basis of Accounting
i) Revenues
Revenues are recognized when they are earned using the accrual method of
accounting.
ii)
iii)
iv)
Expenditures
Expenditures are recognized as they are incurred and when the goods
and/or services are received and/or a legal obligation to pay is established.
Deferred Revenues
The District defers a portion of the revenue collected from permits, licenses and
other fees, and recognizes such revenue in the year in which the related inspections or
other related expenditures are incurred.
Restricted Revenues
Revenues or receipts, which are restricted by legislation or by agreement with external
parties, are deferred and reported as restricted revenues. When qualifying
expenditures are incurred, restricted revenues are recognized as revenues in order to
fund the said expenditures.
v) Government Transfers
Government transfers are recognized as revenue in the period in which events giving
rise to the transfer occurs, providing the transfers are authorized, and eligibility criteria
have been met and reasonable estimates of the amounts can be made.
c) Equity in Non-Financial Assets
Equity in Non-Financial Assets reflects the excess of the accumulated historical cost of
assets acquired, constructed or developed by the District, over the District's outstanding
debt. The value of capital infrastructure constructed by developers and transferred to the
District at no cost is reflected in Equity in Non-Financial Assets at fair market value. The
costs of repairs and upgrading, which do not materially add to the value or the life of an
asset, are recorded in the financial statements as operating expenditures. Disposals of
capital assets are recorded and relieved from Equity in Non-Financial Assets at cost.
2008 Annual Report - District of Mission
1 32 1