Funcions de l’Oficina

March 31, 2014

1. Nature of Operations

The Canadian Council for Accreditation of Pharmacy Programs (the "Council") is a non-profit organization incorporated in 1993 under The Canada Corporations Act. The Council assesses the quality of pharmacy programs in Canadian universities and Canadian technical pharmacy programs and promotes continued improvement of educational programs.

2. Significant Accounting Policies (a) Basis of Presentation

These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations and are in accordance with Canadian generally accepted accounting principles. The financial statements have, in management's opinion, been properly prepared within reasonable limits of materiality and within the framework of significant accounting policies summarized below.

(b) Cash

Cash consists of bank deposits held with financial institutions. There are no restrictions on cash held by the Council.

(c) Investments

Investments consist of Guaranteed Investment Certificates ("GIC's") held with the Bank of Montreal. GIC's maturing within the next twelve months have been classified as short-term.

(d) Capital Expenditures

Items of a capital nature are expensed in the year of acquisition. This policy is considered appropriate for not-for-profit organizations where the acquisition of capital items is incorporated within the annual budgeting process and annual revenues are less than $500,000. Capital expenditures for the year amounted to Nil (2013 - $NIL).

(e) Revenue Recognition

The Council follows the deferral method of accounting for contributions. Restricted contributions 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. Investment income is recognized at the time when interest has been earned.

(f) Estimates

The preparation of financial statements in accordance 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, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the period. Actual results could differ from these estimates.

Significant estimates made by management include the allowance for doubtful accounts.

The Canadian Council for Accreditation of Pharmacy Programs

Notes to Financial Statements

March 31, 2014

3. Financial Risk Management

The significant financial risks to which the Council is exposed to are credit risk, liquidity risk, market risk, currency risk, interest rate risk, and other price risk. There has been no change in the risk exposure of the Council from the prior period.

(a) Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss or the other party by failing to discharge an obligation. The Council is subject to credit risk through amounts receivable. Accounts receivable are subject to normal industry credit risks.

The Council performs regular credit assessments of its members and provides allowances for potentially uncollectible amounts receivable, when considered appropriate.

(b) Liquidity Risk

Liquidity risk is the risk that the Council will be unable to fulfill its obligations on a timely basis or at a reasonable cost. The Council's exposure to liquidity risk is dependent on providing assessments to its members, collection of accounts receivable, and raising of funds to meet commitments and sustain operations. Cash flow from operations provides sufficient resources to meet the Council's cash requirements. The Council's primary lender is a single federally regulated Canadian financial institution.

(c) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

(i) Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. The Council is not subject to foreign exchange risk as none of its financial instruments are denominated in foreign currencies.

(ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Council is not exposed to interest rate risk arising from fluctuations in interest rates as its term deposits are at a fixed rate and would not be affected unless reinvested.

(iii) Other Price Risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Council is not subject to other price risk.

The Canadian Council for Accreditation of Pharmacy Programs

Notes to Financial Statements

March 31, 2014

4. Fair Value of Financial Instruments

The Council initially measures its financial assets and liabilities at fair value. The Council subsequently measures all its financial assets and financial liabilities at amortized cost, except for investments in equity instruments that are quoted in an active market, which are measured at fair value. Changes in fair value are recognized in operations.

Financial assets measured at amortized cost include cash, amounts receivable and investments. Financial liabilities measured at amortized cost consist of accounts payable and accrued liabilities.

5. Amounts Receivable

Amounts receivable consist of:

2014 2013

Amounts receivable $ 14,408 $ 9,589

Allowance for doubtful accounts - -

$ 14,408 $ 9,589

6. Investments

2014 2013

Guaranteed income certificates $ 418,783 $ 406,148

Less: current portion 152,550 152,788

$ 266,233 $ 253,360

The effective interest rate on the investments during the year varied from 1.30% to 2.00% (2013 0.85% to 2.00%). The average interest rate for the year was 2.03% (2013 - 2.66%).

7. Accounts Payable and Accruals

Accounts payable and accruals consist of:

2014 2013

Accounts payable and accrued liabilities $ 4,302 $ 3,702

Government remittances - 1,673

$ 4,302 $ 5,375

The Canadian Council for Accreditation of Pharmacy Programs

Notes to Financial Statements

March 31, 2014

8. Capital Disclosures

The Council considers its capital to be the balance maintained in its Unrestricted Net Assets. The balance on March 31, 2014 is $543,184 (2012: $453,382). The primary objective of the Council is to invest its capital in a manner that will allow it to continue as a going concern and comply with its stated objectives. Capital is invested under the direction of the Board of Directors of the Council with the objective of providing a reasonable rate of return, minimizing risk and ensuring adequate liquid investments are on hand for current cash flow requirements. The Council is not subject to any externally imposed requirements of its capital.

9. Commitments

The Council leases its premises subject to a lease expiring June 30, 2016. Under the terms of the lease, the Council pays a monthly base rent of $1,000. Future minimum annual payments (excluding taxes) under the lease are as follows:

2015 $ 12,000

2016 12,000

2017 12,000