June 15, 2009 - District of Mission
June 15, 2009 - District of Mission
June 15, 2009 - District of Mission
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Municipal Forest — 50 th Year Anniversary Financial Statements<br />
163<br />
<strong>District</strong> <strong>of</strong> <strong>Mission</strong> Development Corporation<br />
Notes to the Financial Statements<br />
for the year ended December 31, 2008<br />
2. Portfolio and Mortgage Investments<br />
2008 2007<br />
M.F.A. Money Market Fund $845,710 $ 864,495<br />
Mortgage receivable from <strong>Mission</strong> Regional<br />
144,919 149,7<strong>15</strong><br />
Chamber <strong>of</strong> Commerce, amortized over 25<br />
years, payable in monthly installments <strong>of</strong><br />
$1,068 including interest at 5.5% per annum,<br />
secured by general security agreement<br />
against debtor's property and by promissory<br />
note; due July 1, 2026.<br />
Subtotal<br />
Accrued Interest<br />
$990,629<br />
657<br />
$1,014,210<br />
678<br />
Totals<br />
$991,286 $1,014,888<br />
3. Related Party Transactions<br />
The <strong>District</strong> <strong>of</strong> <strong>Mission</strong> charges the Corporation for administrative salary costs related to carrying<br />
out the Corporation's business activities.<br />
4. Due from <strong>Mission</strong> Heritage Association<br />
The Corporation has entered into a loan agreement with the <strong>Mission</strong> Heritage Association<br />
whereby the Corporation loaned the Association $58,300. The loan amount outstanding is<br />
$14,620 (2007 - $20,080). The loan amount is interest free and is repayable through annual<br />
installments <strong>of</strong> $5,460. The loan matures on July 1, 2010, and is secured by a promissory note.<br />
5. Fair Market Value <strong>of</strong> Financial Assets and Financial Liabilities<br />
For certain <strong>of</strong> the Corporation's financial instruments, including Cash, Receivables, and Accounts<br />
Payable, the carrying amounts approximate fair market value due to the immediate or short-term<br />
maturity <strong>of</strong> these financial instruments.<br />
The fair market value <strong>of</strong> the Portfolio Investments approximates the carrying value (including<br />
accrued interest) <strong>of</strong> the various instruments, based on quoted year-end market bid prices. The fair<br />
market value <strong>of</strong> the Mortgage Investments approximates the carrying value given that the<br />
inherent interest rate approximates market rate.<br />
The fair market value <strong>of</strong> the Corporation's non-interest bearing loan receivable from <strong>Mission</strong><br />
Heritage Association as at December 31, 2008, was $13,846 compared to a carrying value <strong>of</strong><br />
$14,620. Fair market value has been calculated using the future cash flows (principal<br />
repayments) <strong>of</strong> the actual outstanding debt instrument, discounted at current market rates<br />
available to the Corporation for similar instruments.<br />
6. Income Taxes<br />
All issued shares <strong>of</strong> the Corporation are owned by the <strong>District</strong> <strong>of</strong> <strong>Mission</strong>, a local government in<br />
the Province <strong>of</strong> British Columbia. Consequently, and pursuant to section 149(1)(d) <strong>of</strong> the Income<br />
Tax Act, the Corporation is exempt from income tax.<br />
2008 Annual Report — <strong>District</strong> <strong>of</strong> <strong>Mission</strong>
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