District of Lake Country
Notes to Financial Statements
For the year ended December 31, 2015
The notes to the financial statements are an integral part of the statements. They explain the significant
accounting and reporting policies and principles underlying these statements. They also provide relevant
supplementary information and explanations which cannot be conveniently expressed in the financial
statements.
1. Nature of business
The District of Lake Country (“the District”) was incorporated under the laws of British Columbia in
1995 and is engaged in the operation of a municipality.
2. Significant accounting policies
The financial statements have been prepared in accordance with Canadian Public Sector Accounting
Standards.
The following is a summary of the District’s significant accounting policies:
Basis of presentation
The District’s resources and operations are segregated into General, Water, Sewer and Statutory
Reserve Funds for accounting and financial reporting purposes. Each of these funds is further
segregated into operating and capital funds, where applicable. The financial statements include all
of the accounts of these funds.
Accrual accounting
The financial statements are prepared using the accrual basis of accounting.
Tangible capital assets
Tangible capital assets are recorded at cost which includes all amounts that are directly attributable
to the acquisition, construction, development or betterment of the asset. The cost, less residual
value, of the tangible capital assets is amortized on a straight-line basis over their estimated useful
lives according to an estimated useful life as follows:
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2015 Annual Report
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