TOWN OF ROCKY MOUNTAIN HOUSE

Notes To Consolidated Financial Statements

DECEMBER 31, 2022

1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(j) Prepaid Local Improvement Charges

Construction and borrowing costs associated with local improvement projects are recovered through annual special property assessments during the period of the related borrowings. These levies are collectible from propertyowners for work performed bythe municipality.

Where a taxpayer has elected to prepay the outstanding local improvement charges, such amounts are recorded as deferred revenue. Deferred revenue is amortized to revenue on a straight-line basis over the remaining term of the related borrowings.

In the event that the prepaid amounts are applied against the related borrowings, the deferred revenue is amortized to revenue byan amount equal to the debt repayment.

(k) Employment Benefits Liabilities

The Townrecognizes liabilities for post-employment benefits and compensated absences that vest or accumulate during the period in which the employment services are rendered, assuming payment of benefits is probable and the amounts can be reasonablyestimated. Accumulating, vesting benefits liabilities are measured at cost. Accumulating, non-vesting benefits liabilities are recognized at cost to the extent theyare expected to be used byemployees.

(l) Pension

The Townparticipates in a multiemployer defined benefit pension plan. Contributions for current and past service pension benefits are recorded as expenses in the year in which theybecome due. See Note 20 for details of the pension plan.

(m) Government Transfers

Government transfers are the transfer of assets from senior levels of government that are not the result of an exchange transaction, are not expected to be repaid in the future, or the result of a direct financial return.

Government transfers are recognized in the financial statements as revenue in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be determined.