CITY OF CHILLIWACK 2025 Annual Report 112 113 2025 Annual Report CITY OF CHILLIWACK TOURISM CHILLIWACK INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2025 TOURISM CHILLIWACK INC. Notes to Consolidated Financial Statements Year ended December 31, 2025 Basis of presentation: 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 in accordance with the CPA Canada Public Sector Accounting Handbook. The Company's significant accounting policies are as follows: (a) Basis of consolidation: The consolidated financial statements include all of the funds of the Company. Inter-fund transactions, fund balances and activities have been eliminated on consolidation. The funds of the Company include Facility Management, Tourism Services and Retail Services. (b) Cash and cash equivalents: Cash and cash equivalents consist of cash, bank balances and short-term investments with maturities of less than 90 days at acquisition. (c) Inventories: Inventories are measured at the lower of cost and net realizable value by using first-in, firstout costing methodology. The Company uses the same cost formula for all the inventories having a similar nature and use to the Company. When circumstances which previously caused inventories to be written down no longer exist the previous impairment is reversed. (d) Tangible capital assets: Tangible capital assets are stated at cost, less accumulated amortization. Amortization commences in the year that the asset is put into use and is provided using the declining balance method at the following annual rates: Asset Rate Furniture and fixtures 30% Computers 30% Leasehold improvements 30% Website 45% Works of art and cultural and historical assets are not recorded as assets in these financial statements. Purchased works of art are expensed in year acquired. 5 TOURISM CHILLIWACK INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2025 TOURISM CHILLIWACK INC. Notes to Consolidated Financial Statements (continued) Year ended December 31, 2025 1. Significant accounting policies (continued): (e) 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 and other income is recorded at time of sale. Rental revenues are recognized in the period the facilities are occupied. Revenue received in advance of the fee being earned or the service being performed is deferred and recognized when the fee is earned or service performed. Advertising commission revenue is recognized when the related advertisement or commercial appears before the public. (f) Budget figures: Budget figures represent the budget approved by board of directors on November 29, 2022. (g) 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. Inventories: 2025 2024 Flag shop inventory $ 36,501 $ 18,862 Maps, apparels and books 29,885 50,772 $ 66,386 $ 69,634 6
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