Annual Report 2021 95 94 CHILLIWACK ECONOMIC PARTNERS CORPORATION NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2021 City of Chilliwack CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2021 5. Accumulated surplus: Accumulated surplus consists of the following: 2021 2020 Share capital (note 6) $ 100 $ 100 Equity in tangible capital assets and property under development 12,361,061 7,857,747 Unrestricted equity 1,902,134 6,520,328 $ 14,263,295 $ 14,378,175 6. Share capital: 2021 2020 Issued and authorized with no par value: 100 Common shares $ 100 $ 100 7. Related party transactions and economic dependence: During the year, the City provided $600,000 (2020 - $600,000) in revenue for economic development purposes. No property taxes were paid on any land owned by the Corporation as it is exempt as a result of the indirect land ownership by the City. During the year, the Corporation transferred property with a net book value of $423,168 to the City for no consideration. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the parties. The Corporation is wholly-owned by the City. 8 CHILLIWACK ECONOMIC PARTNERS CORPORATION NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2021 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2021 8. Financial instruments: The Corporation is exposed to market risks from its use of financial instruments. Management does not believe that the Corporation's financial instruments are exposed to significant credit risk or liquidity risk. Market risk is the risk that changes in market prices, such as interest rates, will affect the Corporation's income. The Corporation's cash and investments include amounts on deposit with financial institutions that earn interest at market rates. The Corporation manages its cash by maximizing the interest income earned on excess funds while maintaining the liquidity necessary to conduct operations on a day-to-day basis. Fluctuations in market rates of interest would not have a significant effect on the Corporation's cash and investments. The fair value of the Corporation's cash, accounts receivable, accounts payable and accrued liabilities and unearned revenue approximate their carrying amounts due to the relatively short periods to maturity of these items. The fair value of the investments and financing lease receivable approximate their carrying amounts based on their market based interest rates. There has been no change to the risk exposures outlined above from 2020, other than the pervasive impact of COVID-19 as described in Note 12. 9. Income taxes: The Corporation is exempt from income taxes under Section 149 of the Income Tax Act, Canada. 10. Contractual rights: The Corporation is entitled to the following receipts under grants and rental agreements over the next five years: 2022 $ 1,392,506 2023 1,392,506 2024 792,506 2025 792,506 2026 487,506 $ 4,857,530 9
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