Page 31 - SDTC_2009_AR

Notes to Financial Statements

Year ended December 31, 2009

(Tabular amounts in Thousands of Dollars)

1. Significant accounting policies (continued):

(b) Capital assets:

Purchased capital assets are recorded at cost. Amortization is provided on a straight-line basis over the assets’ estimated useful lives using the following annual rates:

Asset Rate Computer hardware 30% Computer software 50% Office furniture and equipment 20%

Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or their estimated useful lives.

Capital assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

(c) Investments:

Investments are designated for financial reporting purposes as available for sale and are measured at fair value. Purchases are recorded on the settlement date. Management fees related to the investments are expensed. Realized investment income and unrealized gains or losses from the change in fair value are recorded in deferred contributions. Fair value is determined at quoted market prices. Transaction costs related to the acquisition of investments are expensed.

29