Corporate

Workplace Safety & Prevention Services 2012 Annual Report 24 December 31, 2012 a. Nature and Purpose of Organization b. Basis of Accounting c. Revenue Recognition d. Cash and Cash Equivalents e. Contributions Receivable Workplace Safety & Prevention Services Notes to Financial Statements 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 (WSPS or the "Association"). On January 1, 2010 the former Farm Safety Association ("FSA"), Industrial Accident Prevention Association ("IAPA"), Ontario Service Safety Alliance ("OSSA") and Safe Workplace Promotion Services Ontario ("SWPSO") amalgamated and continued operating under the name SWPSO. WSPS 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. The Association expenses in the year of acquisition, purchased software costs which are less than $50,000 per unit as well as computer software and hardware costs which 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. 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 the 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 amortization of the related assets. Interest income is recognized on a time proportion basis. 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. Contributions receivable are recognized as an asset when the amounts to be received can be reasonably estimated and ultimate collection is reasonably assured. 1. Summary of Significant Accounting Policies

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