Annual Reports 2015 | Page 76

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: -5- 2015 Annual Report 76 | Page