2018 Annual Report

City of Chilliwack 81 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements Year ended December 31, 2018 Basis of presentation: Chilliwack Economic Partners Corporation (the "Corporation") is wholly owned by the City of Chilliwack (the "City") and is responsible for economic development activity within the City's boundaries. 1. Significant accounting policies: These financial statements are prepared in accordance with the CPA Canada Public Sector Accounting Handbook. The Corporation's significant accounting policies are as follows: (a) Property under development: Property under development is recorded at the lower of cost and net realizable value and includes direct costs and capitalized interest. (b) Tangible capital assets: Tangible capital assets are recorded at cost. Website costs include hardware and software costs, graphics designs and major enhancements. Website maintenance and ancillary costs are expensed. Amortization commences in the year that the asset is put into use and is provided for using the following methods and annual rates: Asset Basis Rate Buildings Declining balance 4% Computer and office equipment Declining balance 20% - 30% Telecommunication equipment Declining balance 20% Leasehold improvements are amortized on the straight-line basis over the term of the lease plus one renewal period if it is anticipated that the lease will be renewed. Website costs are amortized on the straight-line basis over three years. 5