L'Association Des Francophones De Nanaimo

Notes to the Financial Statements
For the year ended March 31, 2009

Purpose of the Association

The Association was incorporated under the Society Act of British Columbia on March 21, 1978 as a not-for-profit
organization. It is an autonomous body whose purpose is to unite Francophones in the Nanaimo area and to promote the
French language and organize and promote various cultural activities.

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

Significant accounting policies

The financial statements have been prepared in accordance with Canadian generally accepted accounting principles using
the following significant accounting policies:

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.

Grant revenue is recognized as revenue in the funding period or when the expenditure is made, as applicable. Donation
revenue is recognized when the contribution is received. Gifts in kind are recognized in the year the related materials or
services are used. Goods sold, fees and miscellaneous revenue are recognized when cash is received and the service or
product is delivered.

Inventory

Inventory is valued at the lower of cost and net realizable value. Cost for purchased inventory is determined by the
weighted average method. Cost for contributed inventory is determined by the fair value of the contributed items. Net
realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
selling costs.

Capital assets

Capital assets are carried at cost if purchased, or fair value at the date of acquisition if received by gift. Proceeds of
disposals, less carrying values of these assets are reported in the statement of operations as gains or losses on disposal.
Amortization is provided using the straight-line method at rates intended to amortize the cost of assets over their estimated
useful lives.

Rate
Equipment 5 years
Furniture and fixtures 5 years
Computer equipment 3 years
Computer software 1 year
Small tools 5 years

In the year of acquisition, amortization is taken at one-half of the above rates. No amortization is taken in the year of
disposal.

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 association's operations and would otherwise have been
purchased.

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