1. Summarized Financial Statements
The summarized financial statements are derived from the complete audited financial
statements, prepared in accordance with Canadian accounting standards for not-for-profit
organizations as at June 30, 2013 and 2012, and July 1, 2011, and for the years ended
June 30, 2013 and 2012.
The preparation of these summarized financial statements requires management to
determine the information that needs to be reflected in the summarized financial
statements so that they are consistent, in all material respects, with or represent a fair
summary of the audited financial statements.
These summarized financial statements have been prepared by management
using the following criteria:
[a] whether information in the summarized financial statements is in agreement
with the related information in the complete audited financial statements; and
[b] whether, in all material respects, the summarized financial statements contain the
information necessary to avoid distorting or obscuring matters disclosed in the
related complete audited financial statements, including the notes thereto.
Management determined that the statements of changes in net assets and cash flows do
not provide additional useful information and as such has not included them as part of
the summarized financial statements.
The complete audited financial statements of The Nature Conservancy of Canada
[the “Conservancy”] are available upon request by contacting the Conservancy.
2. Revenue Recognition
The Conservancy follows the deferral method of accounting for contributions.
Revenue related to the sale of carbon offset credits is amortized over the term of the
agreements related to the sale of the credits when there is an obligation to maintain the
accreditation of the carbon offset credits.
3. Conservation Lands and Agreements
Purchased conservation lands and agreements are recorded at cost when title is transferred.
The purchases are recorded as an expense to the extent that the purchase is internally
financed. Repayments of debt related to property acquisitions are expensed when made.
An amount equal to the expense related to purchases and debt repayments is added to
net assets invested in conservation lands and agreements. When a loan is obtained in a
subsequent year related to an internally financed purchase, an amount equal to the debt is
transferred from invested in conservation lands and agreements to operating surplus (deficit).
Contributed conservation lands and agreements are recorded at fair market value when title
is transferred. The contributions are recorded as revenue and expenses and also as an asset
offset by net assets invested in conservation lands and agreements.
Properties transferred to others are recorded as a reduction of conservation lands and
agreements and net assets invested in conservation lands and agreements.
Conservation lands and agreements, either purchased or donated, are assets held as part of
the Conservancy’s collection. Conservation agreements are legal agreements entered into by
the Conservancy under which a landowner voluntarily restricts or limits the type and amount
of development that may take place on his or her land to conserve its natural features. Once
registered on title, that agreement runs with the title and binds all future owners.
4. Allocation of Expenses
Salaries and benefits expenses are allocated between property-related and support
expenses based on the primary job responsibilities of the employee’s position. No support
expenses are allocated to property-related expenses.
5. Donated Materials and Services
Donated materials and services are not recognized in the summarized financial statements.
6. Long-Term Debt
Substantially all of the Conservancy’s assets have been pledged as security in connection
with certain long-term debt. The debt has been incurred to fund acquisition of conservation
lands and agreements, property-related and support expenses and capital assets.
7. Contingency
The Conservancy is subject to a claim for damages. The outcome of the claim is not
determinable at this time. However, management believes the claim is without merit.
Losses, if any, related to the claim will be recorded in the period during which the
liability can be estimated.
Notes to Summarized Financial Statements
june
30, 2013
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