NDAEB Annual Report 2019

National Dental Assisting Examining Board - Bureau national d'examen d'assistancedentaire Notes to Financial Statements December 31, 2019 8 1. Accounting Policies Status and Purpose of Organization The National Dental Assisting Examining Board - Bureau national d'examen d'assistance dentaire is incorporated without share capital under the Canada Not-for-profit Corporations Act. The Organization is a non-profit organization engaged in maintaining and continuing ongoing development of a theoretical and clinical examination, which serves as a valid and reliable instrument to assess entry and re-entry of candidates into the practice of dental assisting in Canada. The Organization is a non-profit organization under the Income Tax Act and is exempt from income taxes. Basis of Accounting The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. Revenue Recognition Revenue from examination fees and CPE fees is recognized when the examinations occur. Application fees and foreign credential assessment fees are recognized when applications and payments are received. Deferred revenues occur when examination applicants pay their fees prior to writing the examination. The Organization follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when they are received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Financial Instruments Measurement The Organization initially measures its financial assets and liabilities at fair value. The Organization subsequently measures all its financial assets and liabilities at amortized cost. Impairment Financial assets measured at amortized cost are tested for impairment when there are indicators of impairment. Transaction costs Transaction costs related to financial instruments subsequently measured at amortized cost are included in the original cost of the asset or liability and recognized in the statement of operations over the life of the instrument using the straight-line method.