City of Surrey 2016 Annual Report

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS  CITY OF SURREY

For the year ended December 31, 2016 [tabular amounts in thousands of dollars]

12. TANGIBLE CAPITAL ASSETS (CONTINUED)

December 31, 2015

Net Book Value by fund

December 31, 2016

(recast – note 2)

General capital

$ 2,208,796

$ 2,263,673

Transportation capital

3,603,485

3,706,381

Water capital Sewer capital Drainage capital

605,333 540,766

612,464 555,403

1,071,231

1,074,279

Library capital

5,418

5,300

Surrey City Development Corp.

88,120

95,463

Total

$ 8,123,149

$ 8,312,963

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 tangible capital 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 $275.1 million (2015 - $226.9 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 $114.2 million (2015 - $129.6 million) comprised of roads infrastructure in the amount of $92.4 million (2015 - $95.5 million), water and wastewater infrastructure in the amount of $12.6 million (2015 - $19.7 million) and land in the amount of $9.2 million (2015 - $14.4 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, 2016 and 2015.

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