Lease Inducement Lease payments under operating leases are recognized on a straight-line basis over the term of the lease. Lease inducements received such as free rent or reduced rent payments in early periods are accounted for as a reduction of the lease expense over the term of the lease. Revenue Recognition The College follows the deferral method of recognizing revenue. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Annual registrations expire at the end of February. Registration revenue is recognized in the registration year to which it relates. Revenue arising from registration dues which are received during the current period and which relate to the following fiscal year are deferred. Interest income is recognized as earned. Contributed Services Volunteers contribute services to assist the College in carrying out its activities. Because of the difficulty in determining their amount or fair value, contributed services are not recognized in the financial statements. Financial Instruments Measurement of Financial Instruments Financial instruments are financial assets or financial liabilities of the College where, in general, the College has the right to receive cash or another financial asset from another party or the College has the obligation to pay another party cash or other financial assets. The College initially measures its financial assets and liabilities at fair value. The College subsequentlymeasures all its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash and accounts receivable. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities. Impairment Financial assets measured at cost or amortized cost are tested for impairment, at the end of each year, to determine whether there are indicators that the asset may be impaired. The amount of the write-down, if any, is recognized in operations. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account. The reversal may be recorded provided it is no greater than the amount that had been previously reported as a reduction in the asset and it does not exceed original cost. The amount of the reversal is recognized in operations.
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ALBERTA COLLEGE OF OCCUPATIONAL THERAPISTS ANNUAL REPORT 2019–2020
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