CITY OF CHILLIWACK | 2024 Annual Report 132 133 2024 Annual Report | CITY OF CHILLIWACK TOURISM CHILLIWACK INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2024 TOURISM CHILLIWACK INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2024 TOURISM CHILLIWACK INC. Notes to Consolidated Financial Statements (continued) Year ended December 31, 2024 4. Tangible capital assets: 2024 2024 Opening Closing Cost Additions Disposals Cost Furniture and fixtures $ 70,578 $ - $ - $ 70,578 Computers 90,409 13,750 - 104,159 Leasehold Improvements 127,915 - - 127,915 Website 124,750 - - 124,750 $ 413,652 $ 13,750 $ - $ 427,402 2024 Opening 2024 Closing Accumulated Amortization Accumulated Amortization Disposals expense Amortization Furniture and fixtures 64,140 - 1,407 65,547 Computers 77,104 - 13,756 90,860 Leasehold Improvements 126,722 - 358 127,080 Website 104,652 - 9,341 113,993 $ 372,618 $ - $ 24,862 $ 397,480 2024 Opening 2024 Closing Net book value Net book value Computer software $ - $ - Furniture and fixtures 6,438 5,031 Computers 13,305 13,299 Leasehold Improvements 1,193 835 Website 20,098 10,757 $ 41,034 $ 29,922 8 TOURISM CHILLIWACK INC. Notes to Consolidated Financial Statements (continued) Year ended December 31, 2024 5. Share capital: 2024 2023 Authorized: Unlimited common shares Issued with no par value: 100 Common shares $ 1 $ 1 6. Related party transactions and economic dependence: During the year, the City of Chilliwack (the "City") provided funds under operating agreements totaling $595,000 (2023 - $600,000) to the Company. The City has agreed to provide future annual operating funds based on a pre-determined formula. In addition, the Company had other sales transactions with the City in the aggregate amount of $95,431 (2023 - $68,533) and purchased services from the City totaling $325,359 (2023 - $71,090). The Company is a wholly-owned subsidiary of the City. All transactions with the City 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. During the year the Company had sales of $29,361 (2023 - $29,668) and made purchases of goods and services of $41,822 (2023 - $194,870) with entities that have an individual on the Company's board of directors. These transactions were on the same terms and conditions as transactions with other parties. 7. Financial risks: The Company is exposed to financial risks from its use of financial instruments. Management does not believe that the Company's financial instruments are exposed to significant liquidity risk. Market risk is the risk that changes in market prices, such as interest rates, will affect the Company’s income. The Company's cash and term deposits include amounts on deposit with financial institutions that earn interest at market rates. The Company 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 Company's income. 9
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