Some residents of the community of Kiterup, B.C., formed the Kiterup

Winter Sports Association (KWSA) which was organized as a not-for-profit organization which

has as its purposes encouraging participation in outdoor winter sports. In its first year, the board

decided to restrict its activities to ice skating and skiing.

Initial funding was provided by a wealthy individual who made an endowment contribution of

$200,000 which was invested in bonds and generated income during the year of $8,000. The

donor placed no restrictions on the use of the income produced by the investment of the

endowment contribution which were to be divided evenly between all programs undertaken by

the Association.

During the year donations of $750,000 were received and a further $150,000 of pledges was

outstanding of which the board estimated $130,000 would be collected. It was agreed that such

donations, all of which were unrestricted, would be divided evenly between the skating and

skiing programs. As a practical matter, donations not yet received at year-end were considered to

be restricted for use in the following year. A special fund drive was undertaken to raise money to

provide skates to needy youngsters and skiing equipment to needy senior citizens. During the

year $25,000 was received in contributions for skates and $15,000 for contributions towards

purchasing skis.

During the year ended December 31, 2020, the organization incurred the following costs.

Ice Skating Skiing

Program Program

Wages and salaries $193,000 $81,000

Ice skates 8,000

Skiing equipment 9,000

Other equipment and supplies 58,000 75,000

Transportation 43,000 35,000

Rent 15,000 15,000

Other expenses 35,000 39,000

$352,000 $254,000

At December 31, 2020, the only outstanding payables were for $30,000 relating to the skiing

program (the costs are included in the table above). The ice skates and skiing equipment were

paid for out of the funds raised by the special fund drive and were expensed as acquired.

KWSA does not use fund accounting but uses the deferral method to account for restricted

donations and uses programmatic reporting to report the results of its activities.

a) a statement of operations for the Kiterup Winter Sports Association for the year ended

December 31, 2020.

b) a statement of financial position of the Kiterup Winter Sports Association as at December 31, 2020. Statements for the individual programs are not required.