Corporate

Workplace Safety & Prevention Services Notes to Financial Statements March 31, 2017 1 NATURE AND PURPOSE OF ORGANIZATION Workplace Safety & Prevention Services (WSPS or The Corporation) is an Ontario not-for-profit corporation providing health and safety training materials and services to the agriculture, manufacturing, and service sectors under Section 22.5 of the Occupational Health and Safety Act, R.S.O 1990, c 0.1. WSPS assists organizations to achieve safer and healthier work environments by identifying and reducing workplace risks and hazards to prevent and reduce workplace injuries, illness and disease. The Corporation is exempt from tax under Section 149(1)(I) of the Income Tax Act (Canada). Workplace Safety & Prevention Services was formerly named Safe Workplace Promotion Services Ontario (SWPSO), a not- for-profit organization established on April 20, 2009 in Ontario. 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. On July 10, 2012 the resolution of the members of the Corporation changed the name from Safe Workplace Promotion Services Ontario to Workplace Safety & Prevention Services. During the period, WSPS has changed the year-end from December 31 to March 31. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of accounting The Corporation's accounting policies are in accordance with Canadian accounting standards for not-for-profit organizations, except that the Corporation expenses 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, in the year of acquisition, as mandated by the Ministry of Labour (MOL). Revenue recognition The Corporation follows the deferral method of accounting for funding. Restricted funding from the MOL, Workplace Safety and Insurance Board (WSIB) and other government ministries is 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 Corporation's bank and investments with original maturity dates of three months or less at the date of acquisition. Deferred lease inducement The Corporation 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. 282016 | 2017 Annual Report Workplace Safety & Prevention Services

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