Basic HTML Version
TOURISM CHILLIWACK INC.
Notes to Financial Statements
Years ended December 31, 2011 and 2010
General:
Tourism Chilliwack Inc. (the "Company") was incorporated on December 16, 2006 and began
operations on January 1, 2007. The Company is wholly-owned by the City of Chilliwack. The
mandate of the Company is to develop and promote the tourism industry as well as provide
economic development programs and services aimed at growing the tourism industry in the City
of Chilliwack.
On January 1, 2011, the Company adopted standards issued by the Public Sector Accounting
Board ("PSAB") of the Canadian Institute of Chartered Accountants. These are the first financial
statements prepared in accordance with PSAB.
In accordance with the transitional provisions in PSAB, the Company has adopted the changes
retrospectively. The transition date is January 1, 2010 and all comparative information provided
has been presented by applying PSAB.
The transitional adjustment is described in Note 2.
1. Significant accounting policies:
These financial statements are prepared using standards issued by the Public Sector Accounting
Board of the Canadian Institute of Chartered Accountants. The Company's significant accounting
policies are as follows:
(a) Inventories:
Inventories are measured at the lower of cost and net realizable value by using first-in, first-
out costing methodology. The Company uses the same cost formula for all the inventories
having a similar nature and use to the entity. When circumstances which previously caused
inventories to be written down no longer exists the previous impairment is reversed.
(b) Tangible capital assets:
Tangible capital assets are stated at cost, less accumulated amortization. Amortization is
provided using the following methods and annual rates:
Asset
Basis
Useful life - years
Furniture and fixtures
Declining balance
30%
Computer
Declining balance
30%
Leasehold improvements
Declining balance
30%
Website
Declining balance
45%
5
Tourism Chilliwack Inc.
Financial Statements
71
www.chilliwack.com