June 15, 2009 - District of Mission

Municipal Forest - 50 th Year Anniversary Financial Statements
162
District of Mission Development Corporation
Notes to the Financial Statements
for the year ended December 31, 2008
General
The District of Mission Development Corporation (Corporation) was incorporated on March 9, 1977, under
the laws of the B.C. Company Act and the B.C. Municipal Act. The Corporation's recent business
activities have involved providing loans and mortgages to various organizations, in order to generate
economic development activity within the District of Mission. These loans and mortgages, in turn,
generate interest earnings or income for the Corporation.
1. Significant accounting policies
(a) Inventory of Property Held for Sale
Inventory of Property Held for Sale is recorded at cost, which is less than net realizable value.
Cost is defined as original cost plus accumulated carrying costs, less sales proceeds
received up to and including 1982. Since 1982, sales proceeds have been recorded as
revenue. Costs are removed from inventory on a pro-rata basis, over total acreage held.
The 2008 market value (as determined by the B.C. Assessment Authority) of Property Held
for Sale is $3,834,000 (2007 was $3,834,000).
(b) 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.
(c) Use of Estimates
These financial statements have been prepared in accordance with Canadian generally
accepted accounting principles which require management estimates and assumptions that
affect the reported amount of assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
2008 Annual Report — District of Mission
7,7