June 15, 2009 - District of Mission

Municipal Forest — 50 th Year Anniversary Financial Statements
124
Notes to the Consolidated Financial Statements
for the year ended December 31, 2008
d) Portfolio and Mortgage Investments
Portfolio and Mortgage Investments are recorded at cost, including bonds, which are
recorded net of premiums or discounts. Interest is accrued at the invested rate.
Investments are written down to net realizable value when there has been, in the opinion of
management, a decline in market value other than temporary.
e) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles for local governments established by PSAB requires management to make
estimates and assumptions that affect the reported amounts of certain receivables and
accrued liabilities at the date of the financial statements, and the reported amount of related
revenues and expenses during the reporting period. As such, actual results could differ
from the estimates. Areas requiring the greatest degree of estimation include provision for
retirements, assessment of contingencies, landfill closure and post-closure liabilities, and
allowance for doubtful accounts receivable.
f) Amortization
Amortization of capital assets has not been provided for in these financial statements. See
note 7 for additional information on capital assets.
g) Inventory
Forestry log inventory and land held for resale are valued at the lower of cost and net
realizable value.
h) Long-Term Debt
Long-Term Debt is reduced annually by principal payments and actuarial earnings.
Principal debt repayment is recorded in operating funds in the year that it is repaid.
i) Employee Benefits
The District and its employees make contributions to the Municipal Pension Plan, and the
employees accrue benefits under this plan based on service. The District's contributions to
the Plan are expensed when incurred.
In addition to the Municipal Pension Plan, other retirement benefits also accrue to the
District's employees. The employee benefits and the District's liability related to these
benefits are determined based on service, estimated retirement age, and expected future
salary and wage rates.
2008 Annual Report - District of Mission
I 33 I