L' Association Des Francophones De Nanaimo.

Notes to the Financial Statements
For the year ended March 31, 2008

Significant accounting policies (Continued from previous page)

Recent accounting pronouncements

In December 2006, the Canadian Institute of Chartered Accountants issued Section 3862 Financial Instruments —
Disclosures and Section 3863 Financial Instruments — Presentation to replace Section 3861 Financial Instruments —
Disclosure and Presentation. These new Sections are effective for interim and annual financial statements with fiscal years
beginning on or after October 1, 2007. The Association expects to apply these new recommendations for its financial
statements dated March 31, 2009. Transitional provisions are complex and vary based on the type of financial instruments
under consideration. However, the Association does not expect the adoption of these new standards to have a material
impact on its financial statements. ,

CICA Handbook Section 3031 Inventories replaces corresponding Section 3030 and establishes new standards for the
measurement and disclosure of inventories. The new Section prescribes that inventories should be measured at the lower of
cost and net realizable value and provides guidance on the determination of cost. This standard is effective for interim and
annual financial statements relating to fiscal years beginning on or after January 1, 2008. The Association expects to apply
these new recommendations for its financial statements dated March 31, 2009. The Association does not expect the
adoption of this new standard to have a material impact on its financial statements.

Capital assets

2008 2007

Accumulated Net book Net book

Cost amortization value value
Computer equipment 11,137 7,929 3,208 4,721

Computer software 2,629 2,629 - -
Equipment 48,943 37,511 11,432 9,177
Furniture and fixtures 3,936 3,195 741 926
Small tools 993 278 715 894
67,638 51,542 16,096 15,718
Investment

The investment is a GIC bearing interest at 3.50% and matures November 1, 2009. The carrying amount of the investment
approximates its fair 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 $35,000 secured by the investment of $26,253. The line of credit bears
interest at 6.25%. ,

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