OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024
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Summary of significant accounting policies - Continued (e) Impairment of long-lived assets
OPEIC tests long-lived assets for impairment when events or changes in circumstances indicate that their carrying value may not be recovered. When an intangible asset no longer contributes to the services provided by OPEIC its carrying amount is written down to its residual value. No impairment losses were determined by management to be necessary for the year. (f) Use of estimates The preparation of financial statements in accordance with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Accounts subject to estimates include accrued liabilities, revenue recognized for EHF's receivable and amortization of intangible assets. Actual results could differ from these estimates. (g) Foreign exchange Transactions denominated in foreign currencies are recorded in Canadian dollars at the exchange rate prevailing at the time of the transaction. Monetary assets and liabilities denominated in foreign currencies are converted to Canadian dollars at the exchange rate prevailing at year end. Exchange gains and losses are recorded in the statement of operations for the year. Financial instruments OPEIC is exposed to various risks through its financial instruments. The following analysis provides a measure of OPEIC's risk exposure and concentrations at the statement of financial position date, 31 December 2024. (a) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. OPEIC’s main credit risks relate to its cash, term deposits and accounts receivable. Cash and term deposits are in place with major financial institutions. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of members. OPEIC has evaluation and monitoring processes in place and writes off accounts when they are determined to be uncollectible. There has been no change to this risk exposure from the prior year.
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