STATEMENT of POLICY and PROCEDURE

Manual: Finance and Accounting SPP No. FN 7.01

Section: Accounting and Reporting Issued: Dec. 12, 2011
Subject:
GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
Effective: Dec. 12, 2011
Issue to: All Manual Holders
Page: 1 of 2
Replaces: FN 7.01
Issued by: Dated: Jun. 10, 2010


Finance and Accounting PolicyPro 7.01-1
1 POLICY
1.01 Monthly financial statements prepared for the bank and other lenders shall
include all of the adjustments necessary for fair and accurate presentation to
the extent that it is practical to do so.


2 PURPOSE
2.01 The purpose of this Statement of Policy and Procedure is to require that
monthly financial statements prepared for external circulation comply with
generally accepted accounting principles to the extent that it is practical to do
so.


3 SCOPE
3.01 This policy applies to the [Finance Department].


4 RESPONSIBILITY
4.01 It is the responsibility of the [Finance Department] to ensure that monthly
financial statements comply with generally accepted accounting principles.


5 DEFINITIONS
5.01 Adjustments refers to accounting journal entries, accruals, deferrals and
other items that are necessary to reflect non-transactional events correctly in
the financial statements.

5.02 Generally accepted accounting principles refers to the Handbook of the
Canadian Institute of Chartered Accountants, and the particular Part that
constitutes GAAP followed by the company. See Considerations in the section
Overview, and References below.





STATEMENT of POLICY and PROCEDURE
Manual: Finance and Accounting SPP No. FN 7.01
Section: Accounting and Reporting Issued: Dec. 12, 2011
Subject:
GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
Effective: Dec. 12, 2011
Issue to: All Manual Holders
Page: 2 of 2
Replaces: FN 7.01
Issued by: Dated: Jun. 10, 2010


7.01-2 Finance and Accounting PolicyPro
6 REFERENCES and RELATED STATEMENTS of POLICY and PROCEDURE
CICA Handbook, appropriate Part [note which is followed by the company]:
Part I International Financial Reporting Standards (IFRS)
Part II Accounting Standards for Private Enterprises (ASPE)

SPP FN 7.02 Management and Financial Reporting
SPP FN 7.04 Accounting Controls
SPP FN 7.05 General Accounting Procedures
SPP FN 7.07 Income Taxes
SPP FN 7.08 IFRS International Financial Reporting Standards


7 PROCEDURES
7.01 Month-end adjustments
(a) For all accounting adjustments required at year-end, the [Finance
Department] will consider what entries are required every month to
ensure that the monthly financial statements contain all the information
required so that the financial statements report fairly and accurately, and
so that comparisons can be made between various months.
(b) Provision for obsolete inventory, provision for bad debts, provision for
warranty costs and any other similar items shall be recorded monthly,
based upon an estimate of the year-end provision required. This estimate
shall be updated as new information becomes available.
(c) Estimates for income tax expense and bonus expense will be recorded in
the accounts based upon a current estimate of the likely year-end
amounts, pro-rated using an appropriate methodology (such as based
upon pre-tax income).
(d) At least once a year, the [Finance Department] will review its reporting
package, using a current financial disclosure checklist if appropriate.