siast 2006-2007 annual report - Saskatchewan Institute of Applied ...

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
Year ended June 30, 2007
(in thousands of dollars)
(d) Capital assets:
Purchased capital assets are recorded at cost. Donated capital assets are recorded at fair market value upon receipt with an offsetting amount recorded to
deferred contributions – capital. Amortization is charged to operations on the straight-line basis over the following estimated useful lives of the assets:
Asset Period
Computer equipment 3 and 4 years
Furniture 10 years
Industrial and heavy equipment 10 years
Leasehold improvements:
Saskatchewan Property Management owned properties 15 years
Other properties Lease term
Office equipment, specialized equipment and library 5 years
Vehicles 8 years
(e) Short-term investments:
Short-term investments are stated at cost, which approximates market value.
(f) Long-term investments:
Long-term investments consist of pooled investment funds valued at market value and various equities, bonds and cash equivalents valued at cost.
(g) Use of estimates:
The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and
assumptions regarding the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses for the year. Actual amounts may differ from these estimates.