L'Association Des Francophones De Nanaimo

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

Significant accounting policies (Continued from previous page)
Recent accounting pronouncements
Financial instruments deferral of Section 3862 and 3863

In December 2006, the Canadian Institute of Chartered Accountants (CICA) issued Section 3862 Financia! Instruments —
Disclosures and Section 3863 Financial Instruments — Presentation to replace Section 3861 Financial Instruments —
Disclosure and Presentation. The effective date for these new Sections was for interim and annual financial statements
with fiscal years beginning on or after October 1, 2007, with earlier adoption permitted. However, in light of the uncertainty
regarding the future direction in setting standards for not-for-profit organizations, the CICA released a decision to allow
deferral of Sections 3862 and 3863 for this sector. Not-for-profit organizations should continue to apply Section 3861 until
interim and annual financial statements with fiscal years beginning on or after October 1, 2008.

Financial statement presentation by not-for-profit organizations

In September 2008, amendments were made to CICA Handbook Section 4400 Financial Statement Presentation by Not-for-
profit Organizations. Amendments to the section included removal of the requirement to treat net assets invested in capital
assets as a separate component of net assets, and, instead, permitting such an amount to be presented as a category of
internally restricted net assets. In addition, the requirement to recognize and present revenues and expenses on a gross
basis when a not-for-profit organization is acting as a principal in the transaction was clarified. Finally, guidance was
included to reflect that Section 1540 Cash Flow Statements and Section 1751 Interim Financial Statements are applicable
to not-for-profit organizations.

These amendments apply to interim and annual financial statements relating to fiscal years beginning on or after January 1,
2009.

Change in accounting policies

Inventory

Effective April 1, 2008, the Organization adopted the Canadian Institute of Chartered Accountants’ new recommendation for
inventory under CICA 3031 Inventories. The new Section provides guidance on the measurement and disclosure of
inventories. The new recommendation establishes that inventories should be measured at the lower of cost and net
realizable value and provides guidance on the determination of cost. There was no material impact on the financial
statements from the retrospective application of the new accounting recommendations.

Short term investment

The short term investment is a term deposit bearing interest at 2.05% (2008 - 3.85%) and matures January 30, 2010.

Inventory

- Inventory includes contributed inventory with a carrying value of $10,227 (2008 - $8,716).

Capital assets

2009 2008

Accumulated Net book Net book

Cost amortization value value
Equipment 49,638 40,510 9,128 11;432
Furniture and fixtures ' 11,066 4,000 7,066 7A1
Computer equipment 11,137 10,087 1,050 3,208

Computer software 2,629 2,629 - -

Small tools 993 477 516 715
75,463 57,703 17,760 16,096

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