b'ELECTRONIC PRODUCTS RECYCLING ASSOCIATIONNotes to Financial StatementsYear ended December 31, 2020Electronic Products Recycling Association (EPRA or the(b) Direct collection, handling and processing and Association) is an industry-led, not-for-profit associationother expenses:dedicated to ensuring the safe, secure and responsibleProcessing, handling and collection expenses recycling of end-of-life electronics and ensuring(including transportation, warehousing and compliance with the provincial regulations on electronicsrelated storage) are recorded on the date the recycling. Members of Electronics Product Stewardshipelectronics are gathered from collection sites. Canada and the Retail Council of Canada establishedOther expenditures are recognized as incurred.EPRA in 2011. EPRA collects environmental handling fees from registered companies (stewards) which sell(c) Allocated expenditures:electronics into the marketplace. These fees are in turnAllocated expenditures, such as administration used to pay the handlers of end-of-life electronics,services, including harmonization costs, recycling mainly collection depots, transportation companiesquality office costs, administration and other and processors. The fees also cover the communicationgovernance expenses, are allocated to EPRA and education outreach on the electronics recyclingregions of British Columbia, Saskatchewan, programs and drop-off locations. Manitoba, Quebec, New Brunswick, Prince EPRA was incorporated on April 14, 2011 as a CanadianEdward Island, Nova Scotia and Newfoundland not-for-profit organization without share capital. Theand Labrador based on actual costs as incurred.Association was previously incorporated under the(d) Capital assets:Canada Corporations Act and was continued underPurchased capital assets are recorded at cost. the Canada Not-for-profit Corporations Act in MarchAmortization is provided on a straight-line basis 2013. The Association operates programs in Britishover the estimated useful lives of the assets. Columbia, Saskatchewan, Manitoba, Quebec, NewRepairs and maintenance costs are charged to Brunswick, Prince Edward Island, Nova Scotia andexpense. Betterments which extend the estimated Newfoundland and Labrador without monetary gain orlife of an asset are capitalized. When a capital profit to its stewards. EPRA also provides managementasset no longer contributes to the Associations administration to the Ontario Electronic Stewardshipability to provide services, its carrying amount is program. EPRA is exempt from income taxes underwritten down to its residual value.Section 149 (1) of the Income Tax Act (Canada). 3 years1. Significant accounting policies: Software 5 yearsThese financial statements have been prepared byFurniture and equipment management in accordance with Canadian accountingEquipment 5 years standards for not-for-profit organizations: Lesser of the Leasehold improvements (a) Revenue: estimated useful lifeThe Association follows the deferral method of and lease termaccounting for revenue. Environmental handling fees (EHF) are received from registered stewards within the provinces which participate in the EPRA program. The Association recognizes these fees as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. EHF revenue is recognized as individual stewards report and remit them as required by applicable provincial environmental legislation.Management fee and interest revenue are recognized as earned.26 EPRA ANNUAL REPORT 2020'