EGBC_AnnualReport_2023-2024

The Association of Professional Engineers and Geoscientists of the Province of British Columbia Notes to Non-consolidated Financial Statements June 30, 2024

The “Legal and insurance fund” relates to an appropriation by the Board to set up a legal and insurance reserve to allow for extraordinary cases and situations over and above annual expectations. This allows the Organization to be prepared for future contingencies. The amount appropriated for legal and insurance is reviewed by the Board annually. On June 16, 2023, the Board approved an appropriation of $250,000 for the creation of the new “Advocacy Body Fund”. The purpose of this new reserve is to fund the formation of an independent advocacy body for the professions. The Board further approved an additional $500,000 to support BC Society of Engineering and Geoscience in ramping up their operations.

Revenue recognition and deferred fees

The Organization follows the deferral method of accounting for contributions. Restricted contributions are deferred and recorded as revenue in the period in which the expense has been incurred. Annual fees and other revenues that are received, but for which services have not yet been performed, are reported as deferred revenue. Registration and other fees are billed and received in advance on a calendar-year basis. Accordingly, a portion of these fees received prior to June 30, 2024, has been deferred for financial reporting purposes and will be recognized as revenue when services are rendered.

All other revenues are recognized when earned if the amount to be received can be reasonably estimated and collectibility is reasonably assured.

Amortization

Amortization is recorded by using the following annual rates calculated on a straight-line basis:

Building

3.3% 33.3%

Intangible assets (software and development)

Computer

10% – 33.3%

Electronic equipment

20% 10%

Furniture, fixtures and office improvements

Donated services

The Organization and its registrants benefit from donated services in the form of volunteer time for various committees. Donated services are not recognized in these non-consolidated financial statements.

Cash and cash equivalents

Cash and cash equivalents consist of cash on deposit and high interest savings accounts with banks.

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