- We protect over 150,000 people across North America
- Over 20 years experience in the industry
- One of the few alarm companies to manufacture our own technology
- You deal directly with AlarmForce at all times
- Lowest prices and best value in the business
Finacial Information
Notes to Consolidated Financial Statements
1. NATURE OF BUSINESS
AlarmForce Industries Inc., (the “Company”) provides security alarm monitoring and related services to residential and commercial subscribers throughout Canada and in selected states of the U.S. The Company is a leading provider of two-way voice alarm systems and monitoring services and was incorporated under the laws of Canada on November 16, 1988.2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in Canada.(a) Basis of Consolidation
These consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and AlarmForce LP, a limited partnership. Inter-company balances and transactions have been eliminated.
(b) Revenue Recognition
(i) The Company earns majority of its revenue from subscribers for monitoring services and equipment. Revenue from monitoring services is recognized over the term of the subscriber agreement as the services are provided. The subscriber agreements are non-cancelable over a three or four year term with automatic annual renewals thereafter.(ii) Revenue and the related costs from the sale of equipment, which consists principally of the sale of alarm equipment, are deferred and recognized over the respective three and four year terms of the subscriber agreement.
(iii) Unearned revenue results from subscribers who are billed for monitoring in advance of the period in which such services are provided, on a monthly, quarterly or annual basis. Revenues from monitoring activities are recognized in the period such services are provided. The maximum period for which subscribers are billed in advance is one year.
(c) Inventory
Inventory, consisting principally of alarm equipment and accessories, are valued as follows:(i) For used equipment and accessories, at the lower of the weighted average amortized cost and net realizable value; and
(ii) For new equipment and accessories, at the lower of cost on a first-in, first-out basis and net realizable value.