Edmonton Economic Development Corporation Notes to Financial Statements December 31, 2012, December 31, 2011 and January 1, 2011
14 Interest in and advances to joint venture Travel Alberta International Inc. (TAI) is a separate legal entity, owned and managed, each as to 50% by the Company and the Company’s Calgary counterpart. On November 21, 2008 notice was given to terminate Travel Alberta International Inc.’s contract with the Province of Alberta effective March 31, 2009. As a result of the termination of the contract, the shareholders of TAI authorized the wind down of operations and TAI ceased to be a going concern as of March 31, 2009. In conjunction with the wind up of operations, TAI entered into an agreement with the Province of Alberta which provides marketing and operational funds to TAI during the transition period as well as outlines the process to transfer certain capital assets and commitments to the Province as of April 1, 2009. In 2010, the Company received a payment of $355,685 from TAI as proceeds on dissolution, to be used for Tourism marketing. The amount was recorded as deferred revenue, to be amortized equally over 3 years, starting in 2010. The $118,562 to be recognized in each of the three years represents the anticipated levels of related tourism marketing activity. To December 2012, the full amount has been recognized.
15 Participation in TEC Edmonton The Company and the University of Alberta entered into an agreement on January 1, 2006 to participate in TEC Edmonton. This agreement is $1,000,000 for each of the fiscal years to 2015, subject to the annual approval and receipt of funds from the City. The purpose of TEC Edmonton is to develop ideas, people and business opportunities in the high growth technology-based business sectors of Edmonton and the greater Capital Region. In 2012, $1,000,000 (2011 – $1,000,000) was provided. Liabilities or obligations to third parties that can’t otherwise be satisfied by the assets or resources within control of TEC Edmonton or from insurance and rights of indemnification are to be satisfied as 50% from the Company and 50% from the University of Alberta. At December 31, 2012, the Company is not aware of any liabilities or obligations that cannot be satisfied by the assets or resources within control of TEC Edmonton. The Company has determined that joint venture accounting is not the appropriate treatment for the TEC Edmonton agreement. The Company is acting as an agent on behalf of the City of Edmonton. Accordingly, funding received from the City, and subsequently forwarded to TEC Edmonton, is not reflected in the statement of operations.
(11)