CIRA Annual Report 2007-2008

2007–2008 CIRA Annual Report497. DEFERRED CONTRIBUTIONS RELATEDTO EQUIPMENTDeferred contributions related to equipmentrepresent the unamortized portion of thecontributed equipment.8. NET ASSETSInternally Restricted Net AssetsDuring the 2005 fiscal year, the Board ofDirectors approved a policy change to theinternally restricted net assets that were equalto nine months operating expenses. The changestates that internally restricted net assetsare equal to one year operating expenses ascalculated at the end of each fiscal year and thatany unrestricted net surplus each fiscal year isto be allocated to the internally restricted netassets until such time that the restricted net assetamount has been achieved. The March 31, 2008financial statements reflect a transfer from theunrestricted net assets to the internally restrictednet assets of $1,415,498.Invested in EquipmentThe amount invested in equipment representsthat portion of net assets that is not available tothe organization for other purposes.9. RELATED PARTY TRANSACTIONSThe financial statements include Directors feespaid to CIRA’s 12 Directors of $101,200. Theseservices were provided in the normal courseof business and are measured at the exchangeamount, which is the amount of considerationestablished and agreed to by the related parties.