D r a f t f o r d i s c u s s i o n o n l y 8 CANADIAN SCHOOL BOARDS ASSOCIATIONS L'ASSOCIATION CANADIENNE DES COMMISSIONS/CONSEILS SCOLAIRES NOTES TO FINANCIAL STATEMENTS MARCH 31, 2019 1. Nature of the association The Canadian School Boards Association - L'Association canadienne des commissions/conseils scolaires is a not-for-profit organization representing school board associations on federal policy issues affecting education. The Association is primarily funded by membership fees. The Association was incorporated without share capital under Part II of the Canada Corporations Act, and since October 10, 2014 became regulated under the Canada Not-for-Profit Corporations Act. The Association qualifies as a not-for-profit organization and is exempt from income taxes under Section 149 of the Income Tax Act. 2. Significant accounting policies The financial statements were prepared in accordance with Canadian accounting standards for not-for- profit organizations in Part III of the CPA Canada Handbook – Accounting and include the following accounting policies: Use of estimates The preparation of these financial statements in conformity with Canadian accounting standards for not- for-profit organizations requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates are reviewed periodically and adjustments are made to income as appropriate in the year they become known. Revenue recognition The Association follows the deferral method of accounting for contributions. Under this method, contributions restricted for future period expenses are deferred and are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Membership fees are recognized as revenue in the year in which the levy pertains to the extent that collection is reasonably assured. Interest income is recognized as revenue on a time basis in the period in which it is earned. Deferred revenues consists of membership fees received in advance for the upcoming year from the member associations.