Association of Professional Engineers and Geoscientists of Alberta Notes to Summary Financial Statements (in thousands of dollars) 1. Basis of presentation
APEGA follows the deferral method of accounting for contributions, which include grants and donations. Grants are recognized in the accounts when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Grants are deferred when initially recorded in the accounts and are recognized as revenue in the year in which the related expenses are recognized. Donations are recorded when received, since pledges are not legally enforceable claims. Unrestricted contributions are recognized as revenue when initially recorded in the accounts. Externally restricted contributions are deferred when initially recorded in the accounts and recognized as revenue in the year in which the related expenses are recognized.
The summary financial statements are derived from the audited financial statements prepared in accordance with Canadian accounting standards for not-for-profit organizations as at December 31, 2024, and for the year then ended. The preparation of these summary financial statements requires management to determine information that needs to be reflected in them so that they are consistent in all material respects with, or represent a fair summary of, the audited financial statements.
Management prepared these summary financial statements using the following criteria:
• the summary financial statements include the audited statement of financial position and the audited statement of operations; • information in the summary financial statements agrees with the related information in the audited financial statements; • major subtotals, totals, and comparative information from the audited financial statements are included; and • the summary financial statements contain the information from the audited financial statements dealing with matters having a pervasive or otherwise significant effect on the summary financial statements, such as described in note 2. The audited financial statements of the Association of Professional Engineers and Geoscientists of Alberta (APEGA) are available on APEGA’s website at apega.ca. 2. Summary of significant
3. Pension plan a) Defined benefit pension plan
2024 2023
Defined benefit pension plan surplus
9,058
Plan assets at fair value
18,243
(7,414) (15,346)
Accrued benefit obligations
1,644 2,897
Contributions to the plan during the year by APEGA were $301 (2023 – $367) and by employees were $101 (2023 – $95). Benefit/termination payments from the plan during the year were $827 (2023 – $917). The significant actuarial assumptions adopted in measuring APEGA’s accrued benefit obligation and pension benefit costs include an annual discount rate of 5.95% (2023 – 5.95%), an annual rate of return on plan assets of 5.95% (2023 – 5.95%), an annual rate of salary increase of 3.5% (2023 – 3.5%), and an annual inflation rate of 2.5% (2023 – 2.5%). The most recent actuarial valuation of the plan for funding purposes was performed as at December 31, 2022. The defined benefit pension plan will be terminated effective March 31, 2025. No further service cost will be accrued by its participants. All active participants will accrue benefits under the defined contribution portion of the plan effective April 1, 2025, and deferred participants will be given options for a buy out or purchase of annuities. As part of the wind up, a settlement transaction occurred on December 18, 2024, fully transferring the risks and obligations of the current pensioners to a third party for a settlement price of $10,032. The value of the pension obligation settled was $8,443, which resulted in a loss of $1,589 on the settlement transaction. The remaining settlement transactions will be recorded in 2025.
accounting policies Revenue recognition
Revenue is recognized when evidence of an arrangement exists, the service has been rendered, the price is determinable, and ultimate collection is reasonably assured.
Specific revenue recognition policies include the following:
• Member dues and permit fees are set annually by council and recognized as revenue proportionately over the fiscal year to which they relate. • Registration fees are recognized when registration occurs, and fees are received.
• Examination fees are recognized when the examination is presented.
• Affinity program revenues are recognized when earned.
• Program fees are recognized when programs occur.
• General revenue is recognized when the related services are provided, or goods are shipped. • Investment income includes interest and dividends. Interest is recognized on an accrual basis and dividend income is recognized on the ex-dividend date.
b) Defined contribution pension plan
Total defined contribution plan expense for the year was $920 (2023 – $864).
58 60
2024 ANNUAL REPORT
Made with FlippingBook flipbook maker