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PRINCE EDWARD ISLAND
LIQUOR CONTROL COMMISSION
Notes to Financial Statements
March 31,2015
3.
Summary of Significant Accounting Policies (continued...)
f) Property, Plant, and Equipment
Property, plant, and equipment are stated at cost less accumulated amortization and any
impairment losses. All capital asset additions over $1,000 are capitalized. Capital assets
are broken down into components when the components are significant and have
differing useful lives than the rest of the asset. Amortization is calculated on a straight
line basis at the following rates:
Asset
Rate
Buildings
2.5%,3.33%,5%,6.66%
Leased property
5%
Equipment
20%
Vehicles
20%
Leasehold improvements
5% and 10%
Financial information system
20% and 100%
In the year of acquisition, one half of the amortization rate
is
applied.
g) International Financial Reporting Standards Not Yet In Effect
At the date of issuance of these statements certain new standards, amendments, and
interpretations to existing standards have been published but are not yet in effect. The
Commission has chosen not to adopt these early, as allowed by IFRS. Management
anticipates that all relevant pronouncements will be adopted as the Commission’s policy
is to adopt in the first period following the effective date. A list of applicable
pronouncements and their effective dates are as follows:
IFRS 9
Financial Instruments
with an effective date of the first fiscal period beginning on
or after January
1,2015.
lAS 16
Properly, Plant, and Equipment
focusing on clarification of acceptable methods of
amortization with an effective date of the first fiscal period beginning on or after January
1,2016.
The estimated impact of the above pronouncements on the financial statements has not
been determined at this time.