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I I E:c accountants &: advisors DEVELOPMENT COUNSELLORS INTERNATIONAL, LTD. (AN S CORPORATION) NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2008 AND 2007 Note 1 - OrQanization and SiQnificant AccountinQ Policies: OrQanization and Business: I I '! , E I il I, I ' :1 I j ,Q lei ~ o o ~ Development Counsellors International was incorporated under the laws of the State of New York and commenced business on January 1, 1967. Effective January 1, 2002, ownership is Tedlevine (3%), Andrew Levine (82%), Robert DeRocker (10%), Julie Curtin (2.5%) and Carolyn Nepo (2.5%). Nature of Business: Development Counsellors International, Ltd. is a Public Relations firm offering a wide range of services to a vast array of clients. The company is headquartered in New York. Method of AccountinQ: The accompanying financial statements are prepared on the accrual basis of accounting. For income tax purposes, the company utilizes the cash method of accounting. A deferred tax provision has been provided based upon the difference between the financial statement and the tax basis of assets and liabilities using provisions of the enacted tax law in accordance with SFAS No. 109, "Accounting for Income Taxes", RecoQnition of Commissions and Fees: In general, fee income, as well as income earned on expenditures billable to clients, is recognized when earned. Cash and Cash Equivalents: Cash and cash equivalents represent money markets and other highly liquid investments maturing in 90 days or less. Income Taxes: The Company has elected liS" corporation status under the applicable provisions of the Internal Revenue Code and New York State income tax law. The net income of the company flows through to the shareholders' income tax return. Accordingly, no provision for Federal and New York State income taxes has been made. The Company remains liable for New York City General Corporation Tax. I I I.