2015 City of Surrey Annual Report

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS City of Surrey

For the year ended December 31, 2015 [tabular amounts in thousands of dollars]

13. TANGIBLE CAPITAL ASSETS (CONTINUED)

December 31, 2014 (recast – note 3)

Net Book Value by fund

December 31, 2015

General capital

$ 2,150,169

$ 2,216,087

Transportation capital

3,525,417

3,603,485

Water capital

592,103

605,333

Sewer capital

541,931

540,766

Drainage capital

1,059,186

1,071,231

Library capital

5,673

5,418

Surrey City Development Corp.

115,498

88,120

Total

$ 7,989,977

$ 8,130,440

a) Work-in-progress Work-in-progress is comprised of costs related to projects currently under planning, development or construction that will result in a finished asset at a future date. Such costs are capitalized until such time as the property is ready for use or sale. Work-in-progress having a value of $226.9 million (2014 - $401.0 million) has not been amortized. Amortization of these assets will commence when each specific asset is put into service. b) Contributed Tangible Capital Assets Contributed tangible capital assets have been recognized at fair value at the date of contribution. The value of contributed assets received during the year is $129.6 million (2014 - $146.8 million) comprised of roads infrastructure in the amount of $95.5 million (2014 - $92.4 million), water and wastewater infrastructure in the amount of $19.7 million (2014 - $45.7 million) and land in the amount of $14.4 million (2014 - $8.7 million), including improvements. c) Tangible Capital Assets Disclosed at Nominal Values Where an estimate of fair value is not determinable, the tangible capital asset is recognized at a nominal value. d) Works of Art and Historical Cultural Assets The City manages and controls various works of art and non-operational historical cultural assets including buildings, artifacts, paintings and sculptures located at City sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized. e) Write-down of Tangible Capital Assets Tangible capital assets are written down when conditions indicate that they no longer contribute to the City’s ability to provide goods and services. Any impairment is accounted for as an expense in the consolidated statement of operations. No impairments were identified or recorded during the year ended December 31, 2015 and 2014.

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