Investor Presentaiton

Notes to Financial Statements December 31, 2013 1 2 Purpose of the organization Charlottetown Airport Authority Inc. was incorporated without share capital under Part II of the Canada Corporations Act in 1996. The Authority operates the Charlottetown Airport and airport business park under a 60-year lease with the Government of Canada. Charlottetown Airport Authority Inc. is currently exempt from federal and provincial income taxes. Summary of significant accounting policies Basis of accounting These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. These financial statements include the following significant accounting policies: Method of accounting Charlottetown Airport Authority Inc. follows the deferral method of accounting for contributions. Re- stricted contributions are recognized as revenue in the year in which the related expenditures are in- curred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Cash Cash consists of cash on hand and bank balances. Revenue recognition Rental revenue arises from agricultural and commercial land leases and airline rental of space in the air terminal building. These revenues are recognized on an accrual basis. Concession income is recognized as earned and is primarily from licenses to vehicle rental agencies and other concession type operations. Parking revenue consists of fees paid for long and short term parking by travellers, car rental parking, and employee parking, and is recognized as earned. Landing and terminal fees are recognized upon the landing of aircraft at the airport. Airport services revenue consists of aircraft parking fees, snow removal charges and other miscellaneous charges to airport users, and are recognized as it is earned. Other income consists primarily of recovered costs and is recognized in the period in which the cost recovery occurs. 27

View entire presentation