C S E G AN N U AL RE P O R T 2 0 17 41 DIR E C T O R S R EP O R T S FI N A N CI A L S CA NA DIA N S O CIE T Y OF EXP LORA T I ON G E OPHY SICIST S Note s t o F ina ncial S t at e m e nt s Y ear E nde d De cember 31 20 17 1 B AS IS OF P R E S ENT A T ION T h e f in anc i al s t atem e nts w e r e pr e par e d in ac cor d anc e w ith Can adia n a c c o untin g s ta ndar d s f o r not f o r pr o f it or g aniz a tio ns GAA P 2 NA T URE AND OBJ E C T O F T HE SOC I ET Y T h e C a nadia n S oc i ety o f Ex p lo r atio n Geop hy s icists th e S o c ie ty w as es t abli s h ed as a S o c ie ty und er th e So c ie tie s Ac t of A lb er ta on Dec e m b er 2 0 19 49 a s a n ot f o r p r of it or g aniz a tio n T h e o bj ec t of t he S oc i ety i s t o p r om o te the s c ie n c e of g eop hy s ics espec i all y as it a ppli es to ex p lo r a tio n a nd to pr om ote f ell ow s hip and c o op er ati on am o ng the per s o ns in te r es t ed in g eop hy s ical pr o ble m s 3 S U MMA RY O F S IG NI F ICA N T ACCO UNT IN G POLICIE S Rev enue r ec o gn itio n T h e So c ie ty f oll ow s th e def e r r al m eth od o f ac c o un tin g f or contr i butio n s R e s tricted c on tr ib utio n s ar e r e c og niz e d as rev enue of the app r opr i ate f u nd in th e y ear i n w hich th e r ela te d ex p en s es ar e in c ur red Unr e s tr i c ted contr i butio n s ar e r e c og niz ed a s r ev enu e o f the app r opr i ate f und w h en r e c eiv e d or r e c eiv a ble if the am o un t c a n be r e as o na bly e s tim ate d an d c o lle c t io n is r e as o nably as sur e d P r oj e c t r e ve nu es a nd ex p en s es ar e re c og niz ed in th e P r o j ec t Fu nd d ur in g the p er io d w hen th e r e ve nue is r ec e iv ed and e x p ens e s a r e in c u r r e d Con ve ntio n r e ve nue s and ex p en s es a r e r e c og niz ed in the Con ve ntio n Fund dur i ng the per i od w hen th e c o nve ntio n is held Cap ita l a s s e ts Cap ita l as sets a r e r e c o r ded in the Oper a tin g F u nd a t c os t Am or tiz a tio n is pr o vi ded o n s tr a ig ht l in e ba s is ov er th r ee to eig h t y ear s be in g the es tim ate d us e f ul li f e o f the a s s e ts Le as e hold im pr o ve m en ts ar e a m o r tiz e d on a s tr a ig ht l in e bas is ov er the t er m o f the le as e w hich is f iv e y ear s Con tr ib ute d s e r vi c e s T h e op er ati ons o f So c ie ty a r e d epen dant o n th e s e r v ic e s o f m a ny v olu nte er s A lth oug h th es e v olu ntee r ed s er v ices f o r m a n in te gr al par t of the ong oin g o per a tio ns t he va lu e of c o ntr ib u ted s e r vi c e s ha s n ot be en r e c og niz e d in the s e f in a nc ia l s t atem e nts contin u es 5 CA NA DIA N S O CIE T Y OF EXP LORA T I ON G E OPHY SICIST S Note s t o F ina ncial S t at e m e nt s Y ear E nde d De cember 31 20 17 1 B AS IS OF P R E S ENT A T ION T h e f in anc i al s t atem e nts w e r e pr e par e d in ac cor d anc e w ith Can adia n a c c o untin g s ta ndar d s f o r not f o r pr o f it or g aniz a tio ns GAA P 2 NA T URE AND OBJ E C T O F T HE SOC I ET Y T h e C a nadia n S oc i ety o f Ex p lo r atio n Geop hy s icists th e S o c ie ty w as es t abli s h ed as a S o c ie ty und er th e So c ie tie s Ac t of A lb er ta on Dec e m b er 2 0 19 49 a s a n ot f o r p r of it or g aniz a tio n T h e o bj ec t of t he S oc i ety i s t o p r om o te the s c ie n c e of g eop hy s ics espec i all y as it a ppli es to ex p lo r a tio n a nd to pr om ote f ell ow s hip and c o op er ati on am o ng the per s o ns in te r es t ed in g eop hy s ical pr o ble m s 3 S U MMA RY O F S IG NI F ICA N T ACCO UNT IN G POLICIE S Rev enue r ec o gn itio n T h e So c ie ty f oll ow s th e def e r r al m eth od o f ac c o un tin g f or contr i butio n s R e s tricted c on tr ib utio n s ar e r e c og niz e d as rev enue of the app r opr i ate f u nd in th e y ear i n w hich th e r ela te d ex p en s es ar e in c ur red Unr e s tr i c ted contr i butio n s ar e r e c og niz ed a s r ev enu e o f the app r opr i ate f und w h en r e c eiv e d or r e c eiv a ble if the am o un t c a n be r e as o na bly e s tim ate d an d c o lle c t io n is r e as o nably as sur e d P r oj e c t r e ve nu es a nd ex p en s es ar e re c og niz ed in th e P r o j ec t Fu nd d ur in g the p er io d w hen th e r e ve nue is r ec e iv ed and e x p ens e s a r e in c u r r e d Con ve ntio n r e ve nue s and ex p en s es a r e r e c og niz ed in the Con ve ntio n Fund dur i ng the per i od w hen th e c o nve ntio n is held Cap ita l a s s e ts Cap ita l as sets a r e r e c o r ded in the Oper a tin g F u nd a t c os t Am or tiz a tio n is pr o vi ded o n s tr a ig ht l in e ba s is ov er th r ee to eig h t y ear s be in g the es tim ate d us e f ul li f e o f the a s s e ts Le as e hold im pr o ve m en ts ar e a m o r tiz e d on a s tr a ig ht l in e bas is ov er the t er m o f the le as e w hich is f iv e y ear s Con tr ib ute d s e r vi c e s T h e op er ati ons o f So c ie ty a r e d epen dant o n th e s e r v ic e s o f m a ny v olu nte er s A lth oug h th es e v olu ntee r ed s er v ices f o r m a n in te gr al par t of the ong oin g o per a tio ns t he va lu e of c o ntr ib u ted s e r vi c e s ha s n ot be en r e c og niz e d in the s e f in a nc ia l s t atem e nts contin u es 5