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Notes to Financial Statements

Year ended December 31, 2009

(Tabular amounts in Thousands of Dollars)

1. Significant accounting policies (continued):

(d) Expenses:

The Foundation classifies expenses on the statement of operations by function. The Foundation allocates salaries, benefits, travel and administration expenses by identifying the appropriate basis of allocating and applying that basis consistently each year. Allocated expenses and the basis of allocating are as follows:

• Salary and benefits expense include salaries, benefits, travel and training, and are allocated proportionately on the same percentage as the budgeted expenditures of the functions.

• Administrative expenses are allocated proportionately on the same percentage as the budgeted expenditures of the functions.

(e) Use of estimates:

The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates. These estimates are reviewed annually and as adjustments become necessary, they are recognized in the financial statements in the period they become known.

2. Adoption of new accounting standards:

Effective January 1, 2009, the Foundation adopted the following amendments and new accounting standard:

(a) Amendments to Section 4400, Financial Statement Presentation by Not-For-Profit Organizations: These amendments revised the financial statement presentation and disclosure requirements for not-for-profit organizations.

(b) Amendments to Section 1000, Financial Statement Concepts:

These amendments revised the definitions of assets and liabilities and removed the recognition of items as assets and liabilities solely on the basis of matching revenue and expenses.

(c) Section 4470, Disclosure of Allocated Expenses by Not-for-Profit Organizations:

This section establishes disclosure standards for Entities that choose to classify their expenses by function and allocate expenses from one function to another.

Adoption of these amendments and new accounting standard had no significant impact on the Foundation’s financial statements for the year ending December 31, 2009, except for the additional disclosure in notes 1(d) and 7.

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