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Ontario Electronic Stewardship Notes to Financial Statements December 31 2014 1. Significant Accounting Policies Continued d Financial Instruments Investments are measured at their fair value. Realized and unrealized gains losses are recorded in the statement of operations. The Organization accounts for its investments on a settlement date basis and transaction costs associated with investment activities are included in the statement of operations. Unless otherwise noted the Organization initially measures its financial assets and liabilities at fair value and subsequently measures its financial assets and liabilities at amortized cost. e Capital Assets Property plant and equipment are recorded at cost less accumulated amortization and are amortized on the following basis Computer equipment 3 years straight line Furniture and fixtures 10 years straight line Motor vehicles 5 years straight line Office equipment 5 years straight line Containers 10 years straight line Leasehold improvements straight line over the term of the the lease Intangible assets with finite lives are recorded at cost and are amortized over their useful lives beginning once the asset is ready for use. The computer software is being amortized on a straight line basis over 3 years. f Impairment of LongLived Assets When a longlived asset no longer has any longterm service potential to the organization the excess of its net carrying amount over any residual value is recognized as an expense in the statement of operations. g Use of Estimates The preparation of financial statements in accordance with Canadian accounting standards for notforprofit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include accrued material management costs. Actual results could differ from managements best estimates as additional information becomes available in the future. 24 2014 F INANCIAL STATEMENTS