Corporate

Workplace Safety & Prevention Services Notes to Financial Statements March 31, 2022 1 1 Nature and purpose of corporation 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. Revenue recognition The Corporation follows the deferral method of accounting for funding. Restricted funding from the Ministry of Labour, Training and Skills Development ("MLTSD"), Workplace Safety and Insurance Board ("WSIB") and other government ministries is deferred and recognized as revenue when it can be reasonably estimated, collection is reasonably assured and 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. Government assistance, including the Canada Emergency Wage Subsidy, is recognized as revenue when it can be reasonably estimated and collection is reasonably assured. 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. Financial instruments Financial instruments are recorded at fair value when acquired or issued, and are subsequently measured at amortized cost less impairment. 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 charged to the financial instrument.

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