Corporate

2015 ANNUAL REPORT  | Workplace Safety & Prevention Services 21 Ahead of the Curve | WSPS.CA/AnnualReport Workplace Safety & Prevention Services Notes to Financial Statements December 31, 2015 1. NATURE AND PURPOSE OF ORGANIZATION Workplace Safety & Prevention Services (WSPS or the Association) is a not-for-profit occupational health and safety organization providing health and safety training material and services to Ontario's agricultural, manufacturing and service sectors. WSPS assists organizations achieve safer and healthier work environments by identifying and reducing workplace risks and hazards to prevent and reduce workplace injuries, illness and disease. The Association is exempt from tax under Section 149(1)(I) of the Income Tax Act (Canada). Safe Workplace Promotion Services Ontario (SWPSO) is a not-for-profit organization established on April 20, 2009 and subsequently renamed to Workplace Safety & Prevention Services. On January 1, 2010 the former Farm Safety Association (FSA), Industrial Accident Prevention Association (IAPA), Ontario Service Safety Alliance (OSSA) and SWPSO amalgamated and continued operating under the name SWPSO. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of accounting The Association expenses, in the year of acquisition, purchased software costs which are less than $50,000 per unit as well as computer hardware costs that are less than $5,000 per unit. Except as noted above, the Association's accounting policies are in accordance with Canadian accounting standards for not-for-profit organizations (ASNPO), which is one of the financial reporting frameworks in Canadian generally accepted accounting principles. Revenue recognition The Association follows the deferral method of accounting for funding. Restricted funding from the Ministry of Labour (MOL), Workplace Safety and Insurance Board (WSIB) and other government ministries are deferred and recognized as revenue when the related expenses are incurred. Course and seminar recoveries are recognized as revenue when services are rendered and there is reasonable assurance of collection. Safety product recoveries relating to inventory are recognized as revenue when goods are shipped and there is reasonable assurance of collection. Unrestricted funding is recognized as revenue when received or receivable. Funding received for capital expenditures is deferred and recognized as revenue on the same basis as the amortization of the related assets. Interest income is recognized as revenue when earned. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, balances with the Association's bank and investments with original maturity dates of three months or less at the date of acquisition. Deferred lease inducement The Association has entered into a lease that provides a free rent period. The total amount of cash to be paid over the term of the lease is accounted for on a straight-line basis over the term of the lease. The excess of rent expense over cash paid related to free rent periods is reflected in liabilities.

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