2015_LCC Annual Report

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% 20%

Vehicles

Leasehold improvements Financial information system

5% and 10% 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.