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Notes to the Consolidated Financial Statements
For the year ended December 31, 2014
[tabular amounts in thousands of dollars]
14
City of Surrey
1. Significant accounting policies (continued)
a) Basis of consolidation (continued)
v) Surrey Homelessness and Housing Society
The consolidated financial statements reflect the assets, liabilities, revenues and expenses of
Surrey Homelessness and Housing Society (“SHHS”). All inter-departmental and inter-entity
accounts and transactions between SHHS and the City are eliminated upon consolidation.
The City provided seed money to the Surrey Homelessness and Housing Society and oversees
its operations.
vi) Trust Funds
These funds account for assets which must be administered as directed by agreement or
statute for certain beneficiaries. In accordance with PSAB recommendations on financial
statement presentation for local governments, trust funds are not included in the City’s
consolidated financial statements. Trust funds administered by the City are presented in
note 18.
b) Revenue recognition
Revenues are recognized in the period in which the transaction or event occurs that give rise to
the revenues. All revenues are recorded on an accrual basis, except when the accruals cannot be
determined with a reasonable degree of certainty or when their estimation is impractical.
The City is required to act as the agent for the collection of certain taxes and fees imposed by other
authorities. Collections for other authorities are excluded from the City’s taxation revenues.
Revenue recognition on sales of properties, occurs when the City has transferred the significant
risks and rewards of ownership. Property lease revenue includes all amounts earned from tenants,
including property tax and operating cost recoveries. Lease revenues are recognized on a straight-
line basis over the term of the lease. Consulting revenue is recorded at the time when services are
provided.
Restricted transfers from governments are deferred and recognized as revenue in the period the
stipulations in the related agreement are met. Unrestricted transfers are recognized as revenue when
received or receivable if the amount to be received can be reasonably estimated and collection is
reasonably assured.