Tourism Chilliwack Inc. Financial Statements
TOURISM CHILLIWACK INC.
Notes to Financial Statements
Year ended December 31, 2012
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.
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 exist 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%
(c) Revenue recognition:
Grant revenues are recognized when the grants have been approved and the conditions
required to earn the grants have been completed.
Revenue from the sale of goods is recorded at time of sale.
Advertising commission revenue is recognized when the related advertisement or
commercial appears before the public.
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