71 / 150
Notes to the Consolidated Financial Statements
For the year ended December 31, 2014
[tabular amounts in thousands of dollars]
16
City of Surrey
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.
j)
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.
i)
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:
ASSET
USEFUL LIFE - YEARS
Land improvements
12 - 60
Buildings and improvements
10 - 50
Infrastructure
10 - 100
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.