Ottawa Hospital Research Institute

(b) Revenue recognition: The Institute follows the deferral method of accounting for not-for-profit organizations. The Institute generates revenue through contributions from external funding agencies and related parties. Contributions receivable are recorded at an estimated realizable value in the period in which the funding agreement is signed. [...] Contributions restricted for the acquisition of capital assets are recorded as deferred capital contributions and recognized as revenue over the estimated useful life of the related capital assets.OTTAWA HOSPITAL RESEARCH INSTITUTE Notes to Financial Statements (continued) Year ended March 31, 2024 6 1. [...] Management has elected to carry its investments at fair value, with the exception of shares in private companies acquired by the Institute in exchange for patent or license rights, which are recorded at nominal value when the fair value of the transaction is not determinable. [...] Amortization is calculated on a straight-line basis over the estimated useful lives of the assets. Construction in progress assets are not amortized until the project is complete and the assets come into use. OTTAWA HOSPITAL RESEARCH INSTITUTE Notes to Financial Statements (continued) Year ended March 31, 2024 7 1. [...] Related entities: Related party transactions are in the normal course of operations and are measured at the exchange amount which is the amount of consideration established and agreed to by the related parties. The Institute has no control over these related parties. (a) The Ottawa Hospital: The Ottawa Hospital acts as paymaster for the Institute. [...] At March 31, 2024, the Foundation manages funds in the amount of $58,368,070 (2023 - $54,875,023), which are designated as Ottawa Hospital Research Institute Endowment Funds. While these funds have been designated to the Institute, they are legally the assets of the Foundation. [...] These amounts are not included in these financial statements.OTTAWA HOSPITAL RESEARCH INSTITUTE Notes to Financial Statements (continued) Year ended March 31, 2024 10 3. [...] The Institute pays for the licensing fees to operate the technology and in turn will receive royalty payments and a minimum collaboration rebate beginning in year three of the agreement. [...] These shares do not give the Institute the ability to significantly influence or exercise control over these private companies. The shares are recorded in these financial statements at a nominal value as the value of the consideration given or received could not be determined. [...] Contributions to the Plan made during the year by the Institute on behalf of its employees amounted to $4,754,422 (2023 - $4,515,010) and are recorded as an expense in the statement of operations.OTTAWA HOSPITAL RESEARCH INSTITUTE Notes to Financial Statements (continued) Year ended March 31, 2024 16 10.