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L'ASSOCIATION DES FRANCOPHONES DE NANAIMO
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2003

PURPOSE OF THE ASSOCIATION

The association is incorporated under the Society Act of British Columbia. It is an autonomous
body whose purpose is to unite Francophones in the Nanaimo area and provide the appreciation of their
language and culture.

The association is exempt from income tax provided certain requirements of the Income Tax Act are
met.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the association have been prepared in accordance with Canadian
accounting principles generally accepted for not-for-profit organizations.
(a) Inventory

Supply inventory is recorded at the lower of cost and net realizable value.

(b) Capital assets

Capital assets are recorded at cost and are not amortized.

(c) Financial instruments

The association's financial instruments consist of short-term investments, accounts receivable,
investments, bank overdraft and accounts payable. Unless otherwise noted, it is management's
opinion that the association is not exposed to significant interest, currency or credit risks arising
from these financial instruments.

(d) Investments

Investments are recorded at cost.

(e) Revenue recognition

The association follows the deferral method of accounting for contributions. 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.

(f) Donations in kind

Donated capital assets, goods and services are recorded as revenue and offsetting expenses or
capital asset purchases at fair market value.

FABESTWICK&
PARTNERS"

CHARTERED ACCOUNTANTS © MANAGEMENT CONSULTANTS