LAKELAND COLLEGE Annual Repor t 2008 - 2009

ANNUAL REPORT 2008-2009
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N otes to t h e Fi n a n cial S tate m e nts
Fo r t h e ye a r e n d e d J u n e 3 0 , 2 0 0 9
Note 1 Authority and Purpose
Lakeland College (the “College”) operates under the authority of the Post Secondary Learning Act, Chapter P-19.5., Statutes
of Alberta, 2003. The College, as an inter-provincial institution, provides educational services responsive to the needs of
students in relation to the workplace, community and society. The College is exempt from the payment of income taxes under
section 149 of the Income Tax Act and is a registered charity.
Note 2 Summary of Significant Accounting Policies and Reporting Practices
These financial statements have been prepared in accordance with Canadian generally accepted accounting principles. In
preparing the College’s financial statements, management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the period. Management believes its estimates to be
appropriate, however, actual results could differ from these estimates.
(a) Revenue Recognition
Operating grants are recognized in the period when receivable. Operating grants received for a future period are deferred
until that future period and are reported as deferred contributions.
Amounts received for tuition fees and contract programs and sales, rentals and services are recognized as revenue in the
period the goods are delivered or the services are provided.
Capital grants and capital donations are recorded as deferred capital contributions until the amounts are invested in
capital assets. Amounts invested representing funded capital assets are transferred to unamortized deferred capital
contributions. Unamortized deferred capital contributions are recognized as revenue in the periods in which the related
amortization expense for the funded capital assets is recorded.
The College recognizes dividend and interest revenue as earned, and investment gains and losses when realized.
Realized gains and losses represent the difference between the amounts recognized through sales of investments and
their respective cost base, as well as the amounts provided for as a write-down due to impairment. Unrealized gains
and losses on available-for-sale securities attributed to endowment net assets are recorded in deferred contributions.
Unrealized gains and losses on available-for-sale securities attributed to other net assets are recorded in the Statement of
Changes in Net Assets, and are recognized in the Statement of Operations when realized.
Unrestricted cash donations are recognized as revenue when they are received. Donations of materials and services that
would otherwise have been purchased are recorded at fair value when a fair value can be reasonably determined.
Externally restricted non-capital contributions are deferred and are recognized as revenue in the period in which
the related expenses are incurred. Externally restricted amounts can only be used for purposes designated by the
contributors. Any externally restricted contributions containing stipulations that the amounts should be permanently
maintained, are recorded as a direct increase to net assets.
(b) Capital Assets
Purchased capital assets are recorded at cost. Donated assets are recorded at their fair value when donated. Capital
assets are amortized on a straight-line basis over the following estimated average useful lives:
Buildings, leasehold and site improvements
3 - 40 years
Furniture, equipment and library
10 years
Vehicles, equipment, computers and telecommunication 5 years
(c) Inventories
Livestock inventory is recorded at net realizable value. All other inventories are valued at the lower of cost and net
realizable value.