Annual Report 2014

City of Surrey

Notes to the Consolidated Financial Statements For the year ended December 31, 2014 [tabular amounts in thousands of dollars]

1. Significant accounting policies (continued)

i)

Budget data The budget data presented in these consolidated financial statements was included in the City of Surrey 2014 – 2018 Consolidated Financial Plan and was adopted through By-law #18109 on January 13, 2014. Non-financial assets Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. Tangible capital assets Tangible capital assets are recorded at cost, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets, excluding land, are amortized on a straight line basis over their estimated useful lives as follows: i)

j)

ASSET

USEFUL LIFE - YEARS

Land improvements

12 - 60 10 - 50 10 - 100

Buildings and improvements

Infrastructure

Machinery and equipment

5 - 40

Annual amortization is charged commencing on the date the asset is acquired or available for use. Work-in-progress amounts are not amortized until the asset is put into service.

ii) Interest capitalization The City does not capitalize interest costs associated with the acquisition or construction of a tangible capital asset except for development properties of SCDC. iii) Contributions of tangible capital assets Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and are recorded as revenue. These assets include some land, road infrastructure, water and wastewater infrastructure, machinery and equipment assets.

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