8. SUBSEQUENT EVENT On March 11, 2020, theWorld Health Organization assessed the coronavirus outbreak (COVID-19) as a pandemic. In Canada, the Government of Alberta declared a provincial state of public health emergency as per the Province of Alberta’s Public Health Act on March 17, 2020 with respect to COVID-19. As of the date of these financial statements, the extent to which COVID-19 impacts the College’s results will depend on future developments, which are highly uncertain and cannot be predicted and dependent upon new information which may emerge concerning the severity of COVID-19 and actions taken to contain this or its impact, among others. As of the date of these financial statements management believes the College will remain fully operational. 9. FINANCIAL INSTRUMENTS The College is exposed to various risks through its financial instruments and has a risk management framework to monitor, evaluate and manage these risks. The following analysis provides information about the College’s risk exposure and concentration as of February 29, 2020. (a) Credit Risk Credit risk arises from the potential that a counter party will fail to perform its obligations. The College is exposed to credit risk from its cash and accounts receivable. The College does not believe it is subject to any significant credit risk due to the cash being held with large financial institutions, and the accounts receivable is due from a credit worthy counter party. (b) Interest Rate Risk Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The College is exposed to interest rate risk primarily through its interest-bearing savings account. It is management’s opinion that there is no significant interest rate risk as of February 29, 2020.
10. BUDGET AMOUNTS The budget amounts presented in the Statement of Operations are taken from the College’s approved budget. The budget amounts are unaudited.
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ALBERTA COLLEGE OF OCCUPATIONAL THERAPISTS ANNUAL REPORT 2019–2020
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