YOUR QUICK GATEWAY (WINDSOR) INC.

Notes to Financial Statements (continued)

Year ended December 31, 2019

3. Significant accounting policies:

The accounting poiicies set out beiow have been applied consistently to all periods presented En these financial statements.

1. Revenue recognition:
   
   Passenger faciiity fees are recognized as income in the period that passengers depart from the Airport. Terminal and landing fees are generated from scheduled airlines and nonscheduled commercial aviation, and are recognized when the airport facilities are utilized. Revenue from leases are recognized on a straight-line basis based on lease contract terms.
   
   Licensing revenue is recognized during the period in which the related services are delivered or performed.
2. Deferred revenue:
   
   Revenues relating to lease contracts are accounted for as deferred revenue when monies are received in advance for the leases. These amounts are amortized into income on a straightline basis over the iife of the lease.
3. inancial instruments:
   1.  Financial assets:
      
      The Corporation initiaily recognizes financial assets on the date that they are originated. All other financial assets are recognized initialiy on the trade date at which the Corporation becomes a party to the contractuai provisions of the instrument.
      The Corporation's financial assets are comprised of loans and receivables.
      
      Loans and receivables
      
      Loans and receivables are financial assets with fixed or determinabie payments that are not quoted in an active market. Such assets are recognized initially at fair value pius any directly attributable transaction costs. Subsequent to initial recognition loans and receivabies are measured at amortized cost using the effective interest method, less any impairment losses.
      
      Loans and receivables comprise cash, short-term deposits and trade and other receivables. Cash comprise bank balances.