L'ASSOCIATION DES FRANCOPHONES DE NANAIMO
NOTES TO FINANCIAL STATEMENTS

(Unaudited) Page 7

MARCH 31, 2016

PURPOSE OF THE ASSOCIATION

The Association des Francophones de Nanaimo ("the Association") was incorporated under the
Society Act of British Columbia as a not-for-profit organization. The mission of the Association is to
gather and unite the Francophones and the Francophiles of the Nanaimo region and to organize,
promote and organize various cultural activities while celebrating the French language and culture.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian accounting standards
for not-for-profit organizations ("ASNPO") under Part Il of the CPA Canada Handbook - Accounting.
Financial statements prepared in accordance with ASNPO are also in accordance with Canadian
generally accepted accounting principles ("GAAP").

These financial statements have, in management's opinion, been prepared within reasonable limits of
materiality using the significant accounting policies noted below:

a) Cash and equivalents
Cash and equivalents consist of cash on deposit and bank indebtedness.
b) Financial instruments

i) Measurement

The Association's financial instruments consist of cash, short-term investments, accounts
receivable, bank indebtedness and accounts payable.

The Association initially measures all of its financial assets and liabilities at fair value. The
Association subsequently measures all of its financial assets and liabilities at amortized cost.

ii) Impairment

Financial assets measured at cost are tested for impairment when there are indicators of
impairment. The amount of any write-down that is determined is recognized in the statement of
revenue and expenses. A previously recognized impairment loss may be reversed to the extent of
any improvement, provided it is no greater than the amount which would have been reported had
the impairment not been recognized previously. The amount of the reversal is recognized in the
period in which it is determined.

eal