Notes to the Financial Statements February 20, 2020
1. PURPOSE OF THE COLLEGE Alberta College of Occupational Therapists (the “College”) is incorporated under the Health Professions Act of Alberta (as of October 5, 2006). Its principal activities include public protection, registration and ongoing regulation of Occupational Therapists, overseeing professional conduct of Occupational Therapists and providing for the professional needs of its members and the development and maintenance of standards of practice of Occupational Therapy in Alberta. The College is a non-profit organization and accordingly, it is exempt from the payment of income taxes. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations. Significant accounting policies observed in the preparation of the financial statements are summarized below. Cash Cash consists of cash on hand and cash on deposit, net of outstanding cheques at the reporting date. Tangible Capital Assets Tangible capital assets are stated at cost or deemed cost less accumulated amortization. Tangible capital assets are amortized over their estimated useful life on a straight-line basis at the following rates: Leasehold improvements..........................15 years Furniture and fixtures........................................... 10% Computer equipment.......................................... 30% Office equipment................................................... 20% Computer software............................................... 50% Amortization of leasehold improvements is recorded over the initial term of the lease plus the term of the first renewal option. When conditions indicate a tangible capital asset is impaired, the carrying value of the tangible capital asset is written down to the asset’s fair value or replacement cost. The write-down of the tangible capital assets are recorded as an expense in the statement ofoperations.
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ALBERTA COLLEGE OF OCCUPATIONAL THERAPISTS ANNUAL REPORT 2019–2020
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