2020 Annual Report

City of Chilliwack 88 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes toFinancial Statements (continued) Year ended December 31, 2020 1. Significant accounting policies (continued): (d) Revenue recognition: Revenues are recognized on the accrual basis according to the terms of the contractual agreements. (e) Budget figures: Budget figures represent the budget approved by the Board of Directors on December 11, 2019. (f) Use of estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Actual results could differ from those estimates. 2. Bank operating line: The Corporation has an operating line of credit for a maximum of $1,000,000 (2019 - $1,000,000) that is due on demand, bears interest at prime plus 0.20% and is secured by a general security agreement. No funds were drawn on the line of credit as at December 31, 2020. 3. Property under development: 2020 2019 Canada Education Park: Land $ 1,353,755 $ 1,353,755 Roads, water, and sewer 1,709,289 1,709,289 Other improvements 195,748 195,748 3,258,792 3,258,792 Downtown Redevelopment: Land 627,068 627,068 Less provision for impairment (203,900) (203,900) 423,168 423,168 $ 3,681,960 $ 3,681,960 Included in property under development is $321,421 (2019 - $321,421) in capitalized interest. 6 CHILLIWACK ECONOMI ERS CORPORATION NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2020