Ontario Annual Report - Insurance Institute of Canada

Financial Statements
Insurance Institute of Ontario
Summary of Significant Accounting Policies
For the year ended March 31, 2012
Purpose of Organization
Basis of Accounting
Revenue Recognition
Cash and short term investments
Capital Assets
The Institute is an incorporated non-profit organization that is dedicated to providing educational
courses and resources to the insurance industry of Ontario.
The Institute follows the deferral method of accounting for contributions. Revenues and expenses
are recorded on the accrual basis, whereby they are reflected in the accounts in the year in which
they have been earned and incurred, respectively, whether or not such transactions have been finally
settled by receipt or payment of cash.
Membership fee revenue is recognized over the term of the membership period. Course, seminar and
other event revenues are recognized upon completion of the event. Other revenues are recognized
upon provision of the goods or service. Grant revenue is recognized in the period to which it relates or
as related specific expenses are incurred.
Cash and short term investments are defined as highly liquid investments with original maturities of
three months or less and consist of money market instruments.
Capital assets are recorded at cost less accumulated amortization. Amortization based on the estimated
useful life of the asset is charged directly to the Funds Invested in Capital Assets account as follows:
Computer equipment and software
Furniture and fixtures
Office equipment
Leasehold improvements
- 4 years straight line basis
- 10 years straight line basis
- 4 years straight line basis
- over the term of the lease on a straight line basis
Funds Invested in Capital Assets
The Funds Invested in Capital Assets represents funds used for the acquisition of capital assets and
deferred capital costs. All amortization of capital assets and deferred capital costs is charged directly
to this fund.
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