2011 Annual Report

The financial statements of the College have been prepared in accordance with Canadian generally accepted accounting principles.

Members’ equity

The members’ equity of the College is comprised of three components. Invested in capital assets represents the costs of land, building, furniture and equipment, net of other funds used to purchase them. The reserve for working capital has been established by the College to provide working capital for continuing operations. The College also maintains a reserve for fee stabilization to assist in avoiding yearly fee increases.

Revenue recognition

The College follows the deferral method of accounting for revenues.

Membership fees received in advance are deferred and recognized as revenue in the year to which the fee relates. Financial contributions received by the College from third parties for capital asset purchases are deferred and recognized in revenue on the same basis as the amortization of the capital assets acquired.

All other revenues are recognized as revenue when received or receivable, if the amounts to be received can be reasonably estimated and collection is reasonably assured.

Investments

Investments are recorded at fair value and include accrued interest.

Capital assets

Capital assets are recorded at cost and are amortized on a straight-line basis over their estimated useful lives, as follows:

Financial instruments

Cash and investments are classified as held-for-trading and are recorded at fair value. Accounts receivable are classified as loans and receivables and accounts payable and accrued liabilities are classified as other financial liabilities, which are both recorded at cost. This approximates fair value due to the short-term nature of the balances. The mortgage payable is recorded at amortized cost.

Unless otherwise noted, it is management’s opinion that the College is not exposed to significant liquidity, interest, currency or credit risk arising from these financial statements.

Income taxes

As a not-for-profit professional membership organization, the College is not liable for income taxes.

Use of estimates

The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. For all estimates, actual results could differ from those estimates.

Future accounting changes

• Accounting standards for not-for-profit organizations

  In December 2010, the Canadian Accounting Standards Board issued a comprehensive set of accounting standards applicable to not-for-profit organizations. The standards are effective for fiscal years beginning on or after January 1, 2012 and require retrospective application, except for certain exemptions and exceptions contained within the standards. Early adoption of the standards is permitted. The College will adopt these standards on January 1, 2012 and believes the impact on its financial reporting will be minimal.