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Edmonton Regional Airports Authority
NOTEs TO FINANcIAL sTATEmENTs
December 31, 2008 and 2007
(in thousands of dollars, unless otherwise noted)
Financial instruments classified as available for sale
are measured at fair value using quoted prices in an
active market. Changes in fair value are recognized
in other comprehensive income until the item is
derecognized or determined to be impaired, at which
time the cumulative gain or loss previously reported
in other comprehensive income is recognized in
earnings. When actively quoted prices are not
available, fair value is determined using other
valuation techniques. If fair value cannot be reliably
estimated, the item is carried at cost.
Financial instruments classified as held to maturity
investments, loans and receivable or other liabilities
are measured at fair value upon initial recognition
and subsequently measure at their amortized cost
using the effective interest method.
Transaction costs on financial instruments are
expensed when incurred. Purchases and sales of
financial assets are accounted for at trade dates.
g) Impairment of long-lived assets
Edmonton Airports reviews the valuation of longlived
assets subject to amortization when events or
changes in circumstances may indicate or cause its
carrying value to exceed the total undiscounted cash
flows expected from its use and eventual disposition.
An impairment loss, if any, is recorded as the excess
of the carrying value of the asset over its fair value,
measured by either market value, if available, or
estimated by calculating the present value of expected
future cash flows related to the asset.
h) Accounting changes
i) Capital disclosures
On January 1, 2008, Edmonton Airports adopted
CICA handbook Section 1535 – Capital Disclosures
which specifies disclosure requirements concerning
capital. This disclosure includes such information
as: qualitative information about its objectives,
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policies and processes for managing capital;
quantitative data about what it regards as capital;
whether it has complied with any externally
imposed capital requirements and, if not, the
consequences of such non-compliance. The adoption
of this section did not have an impact on the
financial statements other than the addition
of note 4.
ii) Financial instruments disclosure and presentation
On January 1, 2008, Edmonton Airports adopted
CICA handbook Sections 3862, Financial
Instruments – Disclosures and Section 3863,
Financial Instruments – Presentation which
requires the disclosure of information with
regards to the significance of financial instruments
for Edmonton Airports financial position and
performance, the nature and extent of risk arising
from financial instruments revising and enhancing
Edmonton Airports disclosure requirements, and
carrying forward unchanged Edmonton Airports
presentation requirements. The additional
disclosures required as a result of adopting these
standards are included in note 13.
iii) General Standards of Financial Statement
Presentation
On January 1, 2008, Edmonton Airports adopted
the CICA Section 1400 General Standards of
Financial Statement Presentation, to include
requirements to assess and disclose an entity’s
ability to continue as a going concern. The
adoption of this section did not have an impact
on the financial statements other than additional
disclosure in note 2.