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, 2022, 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 www.apega.ca. 2. SUMMARY OF SIGNIFICANT 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.
3. PENSION PLAN a) Defined benefit pension plan
2022 ($) 2021 ($)
Defined benefit pension plan surplus
16,792 22,908
Plan assets at fair value
(16,690) (17,929)
Accrued benefit obligations
102 4,979
Contributions to the plan during the year by APEGA were $346 (2021 – $417) and by employees were $98 (2021 – $107). Benefit/termination payments from the plan during the year were $2,600 (2021 – $708). The significant actuarial assumptions adopted in measuring APEGA’s accrued benefit obligation and pension benefit costs include an annual discount rate of 5.25 % (2021 – 5.25%), an annual rate of return on plan assets of 5.25 % (2021 – 5.25%), an annual rate of salary increase of 3.5% (2021 – 3.5%) and an annual inflation rate of 2.5% (2021 – 2.5%). The most recent actuarial valuation of the plan for funding purposes was performed as at December 31, 2019. b) Defined contribution pension plan Total defined contribution plan expense for the year was $774 (2021 – $705).
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.
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2022 ANNUAL REPORT
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