--- title: "Financial Statements in Mission BC | Equipment-Heavy Year-Ends" url: https://www.everstonecpa.com/financial-statements-mission description: "Year-end compiled statements for Mission forestry and equipment businesses — depreciation policy, leases and asset disposals. Ask for a quote." type: service-in-a-city updated: 2026-10-08 summary: "For a Mission forestry or equipment-based corporation, year-end statements are usually a CSRS 4200 compilation in which capital assets dominate. Depreciation policy, the accounting treatment of leases and the gain or loss on trade-ins are the decisions that determine what the statements actually say." faq_count: 8 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Year-end statements](https://www.everstonecpa.com/financial-statement-preparation-canada) Mission Year-end statements · Mission # Financial statements for *Mission* equipment-heavy businesses When a business owns machinery worth more than everything else it holds, the year-end statements are mostly a story about that machinery. They show what it is carried at, how fast it is written down, whether it is owned or leased, and what happened when a unit was traded. It is part of [EverStone’s work for Mission businesses](https://www.everstonecpa.com/accountant-mission). EverStone prepares [compiled year-end statements](https://www.everstonecpa.com/financial-statement-preparation-canada) for incorporated businesses, remotely. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** For a Mission forestry or equipment-based corporation, year-end statements are usually a CSRS 4200 compilation in which capital assets dominate. Depreciation policy, the accounting treatment of leases and the gain or loss on trade-ins are the decisions that determine what the statements actually say. For a one-owner Mission corporation, bookkeeping, payroll and the year-end T2 with financial statements run from $500 to $700 a month. Filings include T4 slips. Equipment finance asks about coverage and encumbrance, not collateral alone. ## Depreciation is an accounting choice, not a tax schedule [Capital cost allowance](https://www.everstonecpa.com/blog/capital-cost-allowance-cca-classes-canada) is a tax deduction with rates set by regulation. Depreciation in the financial statements is a policy the business adopts to spread an asset’s cost over the period it is genuinely useful. They produce different numbers, so the statements and the tax schedule diverge and the difference has to be tracked. Many small equipment-owning corporations simply post the CCA figure as depreciation to save a step. The balance sheet then stops describing the fleet. A skidder written to nil for tax while still working daily appears on the balance sheet as worth nothing, which is the opposite of what a lender needs to see. See [equipment CCA classes](https://www.everstonecpa.com/blog/equipment-cca-classes-bc) for the tax side. ## Useful life, salvage value and heavy-use assets A depreciation policy needs an estimated useful life and a residual value, and for forestry and construction equipment both are genuinely arguable. A machine run on one shift in mild conditions lasts far longer than the same model working steep ground year-round. Hours-based depreciation, written against metered use rather than the calendar, often fits a seasonal business better. Whatever basis is chosen goes in the notes and stays put. Rebuilds complicate it: a major component replacement that extends the machine’s life is capital, depreciated over the extended life, while routine maintenance is expense. Treating every rebuild as expense understates the asset base. ## Lease or buy, and where the lease lands on the balance sheet How an equipment lease is classified changes the shape of the statements substantially. A lease that transfers substantially all the risks and rewards of ownership is capitalized: the machine appears as an asset and the obligation appears as debt, split between current and long-term. An operating lease stays off the balance sheet and runs through the income statement as rent. Two businesses with identical fleets and payments can report very different assets, debt and profit, purely because of how their leases were written. Anyone testing the statements against a covenant needs to know which applies. The classification and its reasoning belong in the file, not assumed from the invoice heading. ## Trade-ins, disposals and the gain nobody expected Equipment businesses cycle machines, and every disposal produces an accounting result and a separate tax result. If a unit is sold or traded for more than its depreciated book value, the statements show a gain; for tax, the same transaction may trigger recapture of [capital cost allowance](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance.html) previously claimed. Owners are often surprised by tax on a trade-in they thought was a wash because no cash changed hands. Trade-ins need unpicking: the invoice shows a net figure, but a disposal and an acquisition sit inside it, and recording only the net understates both. See [recapture](https://www.everstonecpa.com/glossary#recapture) for the tax consequence. ## What an equipment lender or lessor reads Equipment finance underwriting works differently from general commercial lending. The lender already holds security over specific machines, so the questions are about coverage and cash. Does operating cash flow service the total payment schedule? How much of the fleet is encumbered, to whom, and what is free if more security is needed? So the debt note matters most: facilities split by lender, the current portion separated, and security described clearly. A single long-term debt line tells an equipment lender nothing and just prompts a request for detail. ## Compilation, review, audit, and which one the finance company asked for A CSRS 4200 **compilation engagement** presents information the business provides, with no verification and no opinion. The accountant does not inspect the machines, confirm the balances with the finance companies or express any conclusion. It is not an audit and it is not a review. A **review engagement** adds limited assurance through enquiry and analytical work; an **audit** adds an opinion backed by evidence. Most owner-managed Mission equipment businesses operate on compiled statements. Check whether a finance agreement says otherwise: some lessors and larger facilities specify review-level statements in their reporting covenants. That covenant binds even if compilations were accepted without complaint before. ## How the year end runs, remotely EverStone is one CPA working virtually; there is no Mission office. Secure upload links, video meetings and e-signatures let a year end close without anyone leaving the yard. The work suits incorporated logging and forestry contractors, excavation and site-services firms, equipment rental, trucking with owned fleets, and manufacturing and millwork shops with real plant. Related pages: the [Mission small-business CPA](https://www.everstonecpa.com/accountant-mission) page and [Mission equipment business accounting](https://www.everstonecpa.com/equipment-accountant-mission). The year end this all feeds into is [corporate tax in Mission](https://www.everstonecpa.com/corporate-tax-accountant-mission). None of this works on records that are behind, which is what [our Mission bookkeeping page](https://www.everstonecpa.com/bookkeeping-mission) keeps current. Where a lender or an agreement calls for assurance rather than a compilation, the next question is [audit and review readiness](https://www.everstonecpa.com/audit-review-readiness). Where the decision is which machine to buy next and how to structure it, see [fractional CFO support for Mission equipment businesses](https://www.everstonecpa.com/cfo-services-mission). About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. Updated September 2026 . [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) ## What a year-end file contains What a year-end file contains Statements and the tax return come from one set of numbers — for a business operating in Mission, British Columbia | Component | What it shows | | Balance sheet | What the corporation owns and owes at the year-end date | | Income statement | Revenue and expenses over the fiscal year | | Compilation engagement report | The CPA communication that accompanies compiled statements | | T2 schedules | Schedules 100, 125 and 141, built from the same figures as the statements | | Sales tax where you operate | 5% GST plus 7% BC PST: two registrations, two returns | Source: [What a compilation engagement is](https://www.everstonecpa.com/compilation-engagement-canada). General information, not advice. In Mission, EverStone also works with [home-based businesses](https://www.everstonecpa.com/home-business-accountant-mission). ## Who this is for, and who it is not This suits a Mission equipment owner whose finance companies take compiled statements. If a lessor’s covenant calls for a review or an audit, that is a separate engagement, and the first call checks the agreement. The fee is then [quoted in writing](https://www.everstonecpa.com/pricing). ## What happens when you get in touch Statements for a Mission business are prepared the same way wherever the business sits, on a fee agreed up front. - **A free thirty-minute conversation.** Who is going to read the statements, and what that reader needs to see in them. - **The books brought to a closing position.** Balances agreed, cut-off checked, and anything unexplained resolved before a single statement is drafted. - **Drafted, reviewed, issued.** Statements walked through with you, then issued with the [compilation engagement report](https://www.everstonecpa.com/compilation-vs-review-engagement) the reader is expecting attached. [Send an enquiry](https://www.everstonecpa.com/book-online) and bring the lender’s request with you, or [ask what they will want](https://www.everstonecpa.com/quick-question) first. Common questions ## Mission equipment and statement questions **Can I just use CCA as my depreciation expense?** You can, and many small corporations do, but it makes the balance sheet stop describing the fleet. CCA rates are set for tax policy reasons, not to reflect wear. Assets written to nil for tax while still in daily service appear worthless in the statements, which is misleading to an owner making a replacement decision and unhelpful to a lender. [Ask about your case →](https://www.everstonecpa.com/quick-question) **Should equipment be depreciated by hours instead of years?** It is a legitimate and often better basis for machinery whose use swings with the season, because it ties the write-down to actual work rather than the calendar. It requires reliable meter readings and consistent application. Whichever basis is adopted, it belongs in the notes and should not change from year to year without disclosure. **Does a leased machine appear on my balance sheet?** Only if the lease transfers substantially all the risks and rewards of ownership, in which case the asset and a corresponding obligation are both recorded. A true operating lease stays off the balance sheet and is expensed as rent. The classification follows the substance of the agreement, not the word used on the invoice. **Why did trading in a machine create a tax bill?** Because a trade-in is a disposal even when no cash moves. If the proceeds attributed to the old machine exceed its remaining undepreciated capital cost, previously claimed CCA is recaptured and added back to income. The accounting gain and the tax recapture are calculated differently, so both need working through before the year is closed. **What level of statements do equipment finance companies want?** Most accept a compilation for owner-managed borrowers. Some, especially on larger facilities, require review-level statements in their reporting covenants. That obligation applies whether or not it was enforced before. Reading the covenant before year end costs nothing; finding it afterwards costs a second engagement. **Is there a Mission office?** No. EverStone works online, and Mission engagements run fully remotely: secure file transfer, video calls and electronic signature. Nothing requires an in-person meeting, so the year end does not compete with an operating day. **What do year-end financial statements cost in Mission?** The fee is the same in Mission as anywhere else EverStone works. Statements on their own are quoted after we review your enquiry. For a one-owner trades corporation, bookkeeping, payroll and the year-end T2 with statements together usually run $500 to $700 a month all-in. [See the published fees](https://www.everstonecpa.com/pricing). **Do you work with businesses outside Mission itself?** Yes. Year-end statements for businesses in Hatzic, Silverdale, Stave Falls and Deroche are prepared exactly as for Mission ones, from the same closed books, at the same fee. ## Related services and local guides Nearby cities, the rest of what we do for Mission businesses, and the reference pages behind this one. [Tax preparation in Mission](https://www.everstonecpa.com/personal-tax-accountant-mission) [Retail accountant in Mission](https://www.everstonecpa.com/retail-accountant-mission) [Dental practice incorporation: professional corporations, associates and equipment](https://www.everstonecpa.com/blog/dental-practice-incorporation-canada) [Trades accountant in Mission](https://www.everstonecpa.com/trades-accountant-mission) [Financial statements in Aldergrove](https://www.everstonecpa.com/financial-statements-aldergrove) [Financial statements in Langley](https://www.everstonecpa.com/financial-statements-langley) [Financial statements in Maple Ridge](https://www.everstonecpa.com/financial-statements-maple-ridge) [GST/HST filing in Mission](https://www.everstonecpa.com/gst-hst-filing-mission) [Payroll in Mission](https://www.everstonecpa.com/payroll-services-mission) [CFO services in Mission](https://www.everstonecpa.com/cfo-services-mission) [Financial statement preparation](https://www.everstonecpa.com/financial-statement-preparation-canada) [Year-end hub Everything due at a corporate year-end](https://www.everstonecpa.com/year-end-hub) [Compilation engagements](https://www.everstonecpa.com/compilation-engagement-canada) [Accountants across British Columbia](https://www.everstonecpa.com/accountant-british-columbia) [British Columbia tax facts](https://www.everstonecpa.com/bc-tax-facts) [Accountants in the Fraser Valley](https://www.everstonecpa.com/accountant-fraser-valley) [The difference between a compilation and a review](https://www.everstonecpa.com/compilation-vs-review-engagement) ### Starting fees Every fee is fixed in writing before any work begins. - **Corporate year-end and T2 return** fixed fee, quoted in writing *This page* - **Monthly bookkeeping, GST/PST filing included** from $325 a month - **Payroll, remittances, T4s and ROEs** included in monthly bookkeeping - **Books, payroll and the year-end T2 together** $500–$700 a month - **Personal tax return (T1)** from $125; self-employed or rental $275–$500 - **Catch-up bookkeeping** from $2,200 per year of records - **Controller or CFO support** controller from $1,650, CFO from $2,750 a month - **One-off advice call with a CPA** $225 plus GST [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) --- Source: https://www.everstonecpa.com/financial-statements-mission Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online