57 / 144
47
For the year ended December 31, 2016
[tabular amounts in thousands of dollars]
NOTESTOTHE CONSOLIDATED
CITY OF SURREY
FINANCIAL STATEMENTS
1.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
a) Basis of consolidation (continued)
iv) Surrey City Development Corporation (continued)
ii) Grove Limited Partnership and Grove (G.P.) Inc. - (50% owned and proportionately consolidated)
iii) Surrey City Investment (Industrial) Corporation (“SCIIC”) - (100% owned and fully consolidated)
SCIIC has a 50% ownership in the Beedie SCDC (34A Ave) Limited Partnership (“Beedie LP”) - (50% owned and
proportionately consolidated)
SCIIC has a 50% ownership in the Beedie SCDC (34A Ave) G.P. Ltd., the General Partner of Beedie LP - (50% owned and
proportionately consolidated)
v) Surrey Homelessness and Housing Society
The consolidated financial statements include the assets, liabilities, revenues and expenses of Surrey Homelessness and
Housing Society (“SHHS”). All 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) Innovation Boulevard Corporation
The City has a 50% ownership in the Innovation Boulevard Corporation (“IBC”), a government partnership. The consolidated
financial statements include the City’s 50% proportional share of the assets, liabilities, revenues and expenses of IBC. There
was no impact to the City’s financial statements for 2016. All inter-entity accounts and transactions between IBC and the City
are eliminated proportionally upon consolidation.
vii) 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 amounts 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 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.