L' Association des Francophones de Nanaimo
Notes to the Financial Statements
For the year ended March 31, 2006

Financial Instruments

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

The carrying amount of cash, short term investments, accounts receivable, bank indebtedness, and accounts payable and
accruals approximates their fair value due to the short-term nature of these items.

The fair value of the Association's investments approximate the carrying amount since interest earned on the investments
approximates current market rates.
Gifts in kind

Contributed materials and services are recognized in the financial statements when their fair value can be reasonably
determined and they are used in the normal course of the organization's operations and would otherwise have been
purchased.

Reporting currency

In these financial statements, unless otherwise indicated, all dollar amounts are expressed in Canadian dollars.

Capital assets ‘
2006 2005
Accumulated Net book Net book
Cost amortization value value
Computer equipment 25,648 22,499 3,149 2,281
Computer software 2,629 2,629 - -
Equipment 39,789 33,503 6,286 8,493
Furniture and fixtures 3,936 2,778 1,158 1,945
72,002 61,409 10,593 12,719
Investments

The investment is a GIC bearing interest at 3.75% and matures November 1, 2006. The carrying amount of the investment
approximates its market value. This investment is required by the Association's creditor as security for overdraft privileges.
The Association intends to renew the investment at maturity.

Bank indebtedness

The Association has a permanent line of credit of $20,000 secured by the investment of $24,446 and a temporary line of
$40,000 which is due May 31, 2006. The lines of credit bear interest at the bank prime rate plus 1%.

: Mp