Financial Annual Report 2016

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS  CITY OF SURREY

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

1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) l) Segment disclosure

A segment is defined as a distinguishable activity or group of activities of a government for which it is appropriate to separately report financial information to achieve the objectives of the standard. The City of Surrey has provided definitions of segments used by the City (note 1(a)) as well as presented financial information in segmented format (note 22). m) Liabilities for contaminated sites Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of a chemical, organic or radioactive material or live organism that exceeds an environmental standard. A liability for remediation of contaminated sites is recognized when a site is not in productive use and all of the following criteria are met:

• An environmental standard exists; • Contamination exceeds an environmental standard; • The City is directly responsible or accepts responsibility; • The City expects that future economic benefits will be given up; and, • A reasonable estimate of the amount can be made.

The liability is measured as management’s estimate of the cost of post remediation, including operations, maintenance and monitoring, which are an integral part of the remediation strategy for a contaminated site. The liability is recorded net of any expected recoveries.

2. RECAST OF COMPARATIVE FIGURES

During the year, the City determined that certain parcels of land were inaccurately valued in the prior year’s asset registers. The prior years’ comparative figures have been recast for these immaterial items.

The effects of the adjustments on the comparative are summarized below in thousands of dollars:

ACCUMULATED SURPLUS AT JANUARY 1:

2015

Opening accumulated surplus, as previously reported

$

7,985,458

Adjustment for land values

(7,291)

Opening accumulated surplus, as recast

$

7,978,167

TANGIBLE CAPITAL ASSETS AT DECEMBER 31:

2015

Tangible Capital Assets, as previously reported

$

8,130,440

Adjustment for land values

(7,291)

Tangible Capital Assets, as recast

$

8,123,149

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