(b) Investments: Investments are stated at fair value measured on a portfolio basis. They are disclosed separately from current assets to reflect the Association’s intention to hold them at least throughout the following year as a reserve for unforeseen circumstances. (c) Property and equipment: Property and equipment is stated at cost and depreciation is provided for over the estimated useful lives of the assets. The building is depreciated on a straight-line basis over 50 years and the remaining property and equipment is depreciated on a straight-line basis over five years. (d) Member accounts: Member accounts represent cash receipts received during the current year in payment of membership fees applicable to the following year and for services not yet provided. (e) Deferred revenue: Deferred revenue represents amounts received in advance for services that will not be delivered until the next fiscal year. (f ) Revenue recognition: The Association recognizes revenue for registration at the time of the registration as this is the point in time where the service is performed. Membership revenue is recognized over the period to which the membership applies. Tag revenue is recognized at the time payment is received which closely corresponds to the time of delivery. Grant revenue is recognized at the time it is received Other services revenue is recognized at the time the service is performed. (g) Use of estimates and assumptions: The preparation of financial statements in conformity with Canadian generally accepted accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Significant areas requiring the use of management estimates relate to the collectibility of accounts receivable and the useful life of property and equipment for depreciation purposes and evaluation of their net recoverable amount. Consequently, actual results could differ from those estimates.
2. Internally restricted funds:
Investments consist of cash held of $75,000. In the prior year investments consisted of two fixed income investments in the amount of $43,900 and $40,844, and cash held of $172,805. The fixed income investments earned interest at 5.29% and 5.69%, and had maturity dates of April 25, 2017 and June 3, 2018, respectively. These fixed income investments were sold during the year. In 2005, the Association’s Board of Directors resolved to restrict, each year, an amount equal to 3% of that year’s registration revenues, consisting of registration, memberships and transfers, until the fund reaches one year’s operating income. However, during the year, the Board of Directors approved a contribution of $75,000 to the internally restricted fund. The internally restricted amounts are not available without the approval of the Board of Directors. The Board of Directors approved the use of $167,000 of the fund in the current year for the construction of the new office building. In 2012, $65,485 was restricted in accordance with this resolution. During the year, the Board of Directors resolved to restrict an amount equal to 1% of that year’s registration revenues, consisting of registration, memberships and transfers, for the next three years beginning in 2014. Subsequent to year end this was amended by the Board of Directors to restrict an amount equal to 1% of that year’s registration, membership and transfer revenues until such a time that the fund is equal to 15% of gross annual revenue.
3. Property and equipment: Cost Land Building Furniture and equipment Automotive equipment Computer hardware Computer software
$ 1,263,276 3,745,711 308,361 43,235 284,503 191,367
Accumulated depreciation $ 15,524 172,110 8,647 272,856 182,571
2013 Net book value $ 1,263,276 3,730,187 136,251 34,588 11,647 8,796
2012 Net book value $ 1,263,276 2,234 13,499 7,507 5,226
$ 5,836,453
$ 651,708
$ 5,184,745
1,291,742
2013 AFSC fixed rate mortgage, bearing interest at 3.84%, repayable in monthly blended payments of $22,185 commencing February 1, 2014, maturing October 1, 2017 Current portion of mortgage payable
2012
$ 3,734,000
-
116,477
-
$ 3,617,523
-
2013 Results of Operations Total revenues Total expenses
$
Excess of revenue over expenses 2014 2015 2016 2017
$
116,477 131,747 136,814 3,348,962
Cash Flows Cash from operations (decrease) increase in cash
2014 2015 2016 2017 2018
Statement of Financial Position Total assets Total liabilities Total net assets
2012
2013
2012
$ 399,649
$ 246,136
233,064 166,585
121,488 124,648
$ 399,649
$ 246,136
105,286 64,483
$ 53,667 6,508
$ 40,803
$ 47,159
2013
2012
$ (36,466)
$ 45,460
$
45,757 17,241 15,084 15,084 12,699
Long-Term Recognition In 1998, the Canadian Aberdeen Angus Association instituted a long-term recognition award to recognize those individuals and families that have demonstrated a long-time commitment to the Angus breed in Canada by maintaining a continuous membership in the Association for at least 50 years. In 2011, the award program was expanded to recognize families with 75 and 100 continuous years of membership. To date, 142 Angus families have been recognized for 50 years of continuous membership. In 2014, we are pleased that we will recognize the following Angus families for commitment to the breed:
50 Year CAA Heritage Award
Argwen Angus Ranch – David & Marcy Pope, Alberta Donald Atkinson, Alberta Delorme Family, Saskatchewan Doug Henderson, Alberta Harmony Ridge Farm, Nova Scotia Russell G. Hutchison – Avalawn Angus, Manitoba Loma Lanes Angus, Alberta Willms Family, Saskatchewan
Current Regional Representation British Columbia Alberta Saskatchewan Manitoba Ontario Quebec Maritimes Canadian Red Angus Promotion Society
President Tom DeWaal Doug Domolewski Mike Howe Allan Nykoliation Al Hargrave Stan Christensen Julie Mutch Anson Lewis
Secretary Jill Savage Denise Rice Belinda Wagner Arlene Kirkpatrick Julie Townsend Cynthia Jackson Betty Lou Scott Rhea Wheeler
Balance as of Dec. 31, 2013 Current Assets Cash Investments Inventory
$ 124,816.29 271,084.11 3,748.11
Total Current Assets
$ 399,648.51
Current Liabilities
Balance as of Dec. 31, 2012 $
88,349.94 155,172.07 3,748.11 $ 247,270.12
Accounts Payable Canadian Angus Memorial Fund Dorothy Banks Scholarship Enduring Property Investments Dick Turner Scholarship Junior Scholarship Junior Investment Fund
$
59.05 3,075.00 9,311.00 30,441.90 5,300.00 82,278.05 110,000.00
$
3,575.00 9,311.00 30,441.90 6,300.00 71,860.37 -
Total Liabilities
$ 240,465.00
$
121,488.27
$ 25,781.85 33,401.66
$
77,489.08 48,292.77
$ 59,183.51
$
125,781.85
$ 399,648.51
$
247,270.12
Accumulated Surplus Retained Earnings Current Earnings Total Surplus
Total Liabilities and Surplus