(b) Investments:Investments are stated at fair value measured on a portfolio basis. They are disclosed separately from current assets to reflect the Associations intention to hold them at least throughout the following year as a reserve for unforeseen circumstances.

(c) Property and equipment:Property and equipment is stated at cost and depreciation is provided for over the estimated useful lives of the assets. The building is depreciated on a straight-line basis over 50 years and the remaining property and equipment is depreciated on a straight-line basis over five years.

(d) Member accounts:Member accounts represent cash receipts received during the current year in payment of membership fees applicable to the following year and for services not yet provided.

(e) Deferred revenue:Deferred revenue represents amounts received in advance for services that will not be delivered until the next fiscal year.

(f ) Revenue recognition:The Association recognizes revenue for registration at the time of the registration as this is the point in time where the service is performed. Membership revenue is recognized over the period to which the membership applies. Tag revenue is recognized at the time payment is received which closely corresponds to the time of delivery. Grant revenue is recognized at the time it is receivedOther services revenue is recognized at the time the service is performed.

(g) Use of estimates and assumptions:The preparation of financial statements in conformity with Canadian generally accepted accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Significant areas requiring the use of management estimates relate to the collectibility of accounts receivable and the useful life of property and equipment for depreciation purposes and evaluation of their net recoverable amount. Consequently, actual results could differ from those estimates.

2. Internally restricted funds:Investments consist of cash held of $75,000. In the prior year investments consisted of two fixed income investments in the amount of $43,900 and $40,844, and cash held of $172,805. The fixed income investments earned interest at 5.29% and 5.69%, and had maturity dates of April 25, 2017 and June 3, 2018, respectively. These fixed income investments were sold during the year.

In 2005, the Associations Board of Directors resolved to restrict, each year, an amount equal to 3% of that years registration revenues, consisting of registration, memberships and transfers, until the fund reaches one years operating income. However, during the year, the Board of Directors approved a contribution of $75,000 to the internally restricted fund. The internally restricted amounts are not available without the approval of the Board of Directors. The Board of Directors approved the use of $167,000 of the fund in the current year for the construction of the new office building. In 2012, $65,485 was restricted in accordance with this resolution.

During the year, the Board of Directors resolved to restrict an amount equal to 1% of that years registration revenues, consisting of registration, memberships and transfers, for the next three years beginning in 2014. Subsequent to year end this was amended by the Board of Directors to restrict an amount equal to 1% of that years registration, membership and transfer revenues until such a time that the fund is equal to 15% of gross annual revenue.

3. Property and equipment:

LandBuildingFurniture and equipmentAutomotive equipmentComputer hardwareComputer software

Cost

$ 1,263,2763,745,711308,36143,235

284,503191,367

Accumulated depreciation$ -

15,524172,110

8,647272,856182,571

2013 Net book value$ 1,263,2763,730,187136,25134,58811,6478,796

2012 Net book value$ 1,263,276

-2,234

13,4997,5075,226

$ 5,836,453 $ 651,708 $ 5,184,745 1,291,742

2013 2012

AFSC fixed rate mortgage, bearing interest at 3.84%, repayable in monthly blended payments of $22,185 commencing February 1, 2014, maturing October 1, 2017

Current portion of mortgage payable

$ 3,734,000

116,477

-

-

$ 3,617,523 -

2014201520162017

$ 116,477131,747136,814

3,348,962

2013 2012

Statement of Financial PositionTotal assets

Total liabilitiesTotal net assets

$ 399,649

233,064166,585

$ 246,136

121,488124,648

$ 399,649 $ 246,136

2013 2012

Results of Operations

Total revenuesTotal expenses

$ 105,28664,483

$ 53,6676,508

Excess of revenue over expenses $ 40,803 $ 47,159

2013 2012

Cash FlowsCash from operations (decrease) increase in cash $ (36,466) $ 45,460

20142015201620172018

$ 45,75717,24115,08415,08412,699

2013 2012

Results of Operations

Total revenuesTotal expenses

$ 105,28664,483

$ 53,6676,508

Excess of revenue over expenses $ 40,803 $ 47,159

2013 2012

Cash FlowsCash from operations (decrease) increase in cash $ (36,466) $ 45,460

Long-Term RecognitionIn 1998, the Canadian Aberdeen Angus Association instituted a long-term recognition award to recognize those individuals and families that have demonstrated a long-time commitment to the Angus breed in Canada by maintaining a continuous membership in the Association for at least 50 years. In 2011, the award program was expanded to recognize families with 75 and 100 continuous years of membership.

To date, 142 Angus families have been recognized for 50 years of continuous membership. In 2014, we are pleased that we will recognize the following Angus families for commitment to the breed:

50 Year CAA Heritage AwardArgwen Angus Ranch David & Marcy Pope, AlbertaDonald Atkinson, AlbertaDelorme Family, SaskatchewanDoug Henderson, AlbertaHarmony Ridge Farm, Nova ScotiaRussell G. Hutchison Avalawn Angus, ManitobaLoma Lanes Angus, AlbertaWillms Family, Saskatchewan

Current Regional RepresentationPresident Secretary

British Columbia Tom DeWaal Jill Savage

Alberta Doug Domolewski Denise Rice

Saskatchewan Mike Howe Belinda Wagner

Manitoba Allan Nykoliation Arlene Kirkpatrick

Ontario Al Hargrave Julie Townsend

Quebec Stan Christensen Cynthia Jackson

Maritimes Julie Mutch Betty Lou Scott

Canadian Red Angus Promotion Society Anson Lewis Rhea Wheeler

Balance as of Dec. 31, 2013

Balance as of Dec. 31, 2012

Current AssetsCashInvestmentsInventory

$ 124,816.29271,084.11

3,748.11

$ 88,349.94155,172.07

3,748.11

Total Current Assets $ 399,648.51 $ 247,270.12

Current LiabilitiesAccounts PayableCanadian Angus Memorial FundDorothy Banks ScholarshipEnduring Property InvestmentsDick Turner ScholarshipJunior ScholarshipJunior Investment Fund

$ 59.05 3,075.00

9,311.0030,441.905,300.00

82,278.05110,000.00

$ -3,575.009,311.00

30,441.906,300.00

71,860.37-

Total Liabilities $ 240,465.00 $ 121,488.27

Accumulated SurplusRetained EarningsCurrent Earnings

$ 25,781.8533,401.66

$ 77,489.0848,292.77

Total Surplus $ 59,183.51 $ 125,781.85

Total Liabilities and Surplus $ 399,648.51 $ 247,270.12