CHANGE IN ACCOUNTING POLICY
In fiscal 2022, there were no significant changes in the previously adopted accounting policies or their application.
At March 31, 2022, FP Canada’s net assets are $8.3 million, compared to $6 million in 2021. Internally restricted and unrestricted net assets (“available reserves”) are $7.6 million, compared to $5.2 million in 2021. Current available reserves account for six months in operating expenses.
FP Canada’s cash, cash equivalents and investments total $19.5 million at March 31, 2022, compared to $17.1 million in 2020. Investments are managed in accordance with Board approved investment policies.
RESULTS FROM OPERATIONS
Revenue grew from $14.3 million in 2021 to $15.7 million in 2022, and comes primarily from certification fees, examination fees and Professional Education Program fees. In 2022, FP Canada earned $8.6 million in certification fees, representing 55% of total revenue, compared to $8.3 million in 2021, or 58% of total revenue. FP Canada earned another $3.2 million from Professional Education Program fees, compared with $3.5 million in 2021. FP Canada also earned $2.7 million from examination fees, compared with $1.0 million in 2021. This increase is attributed to offering three exam administrations in fiscal 2022 compared to only one administration in fiscal 2021.
Expenses before amortization increased from $11.6 million in 2021 to $13.2 million in 2022.
FP Canada continued to mitigate the impact from the global pandemic by adapting several business processes, including holding its annual conference during Financial Planning Week as a virtual event and offering online-proctoring as an alternative to in-person examinations.