Corporate

 Workplace Safety & Prevention Services  | 22 Workplace Safety & Prevention Services Notes to Financial Statements March 31, 2021 (1) 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 income taxes under Section 149(1)(I) of the Income Tax Act (Canada). 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 that 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, Training and Skills Development (MLTSD). During the year, $260,470 (2020 – $161,656) of software and hardware costs less than these thresholds where expensed. Revenue recognition The Corporation follows the deferral method of accounting for funding. Restricted funding from the MLTSD, 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. Financial instruments Financial instruments are recorded at fair value when acquired or issued. All guaranteed investment certificates and money market funds have been designated to be in the fair value category, with gains and losses reported in operations in the period in which they arise. All other financial instruments are reported at cost or amortized cost less impairment, if applicable. Financial assets are tested for impairment when changes in circumstances indicate the asset could be impaired. Transaction costs on the acquisition, sale or issue of financial instruments are expensed for those items remeasured at fair value at each statement of financial position date and charged to the financial instrument for those measured at amortized cost.

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