Actsafe Safety Association
Notes to the Financial Statements
December 31, 2018
2.
Significant accounting policies - continued
Property and equipment
Property and equipment are recorded at cost and amortized over their estimated useful lives using the
following methods and rates:
Leasehold improvements - 20% straight-line
Office equipment
- 20% declining balance
Furniture and fixtures
- 20% declining balance
Leases
Leases are classified as either capital or operating leases. A lease that transfers substantially all the benefits
and risks incidental to the ownership of property is classified as a capital lease. All other leases are
accounted for as operating leases wherein rental payments are amortized on a straight-line basis over the
term of the lease to rental expense. At the inception of a capital lease, an asset and an obligation is recorded
at an amount equal to the lesser of the present value of the minimum lease payments and the property’s fair
value at the beginning of such lease.
Rental equipment
Rental equipment consists of automated external defibrillators (“AEDs”) that are rented to customers on a
cost-recovery basis. The AEDs are recorded at cost and amortized over their five year estimated life on a
straight-line basis.
3.
Term deposit
Term deposit of $ 230,000 (2017 - $ 230,000) maturing January 27, 2020, earning interest at annual rates of
1.10%, 1.50% and 2.20% respectively for the three year term.
4.
Property and equipment
Leasehold improvements
Office equipment
Furniture and fixtures
2018
$
Cost Accumulated
amortization Net
200,783
103,649
87,179 125,490
56,724
48,951 75,293
46,925
38,228
391,611 231,165 160,446
2017
$
Leasehold improvements
Office equipment
Furniture and fixtures
Cost Accumulated
amortization Net
200,783
100,053
80,981 75,294
45,442
40,168 125,489
54,611
40,813
381,817 160,904 220,913
Included in property and equipment are assets under a capital lease with a cost of $ 42,343 (2017 - $ 42,343)
and accumulated amortization of $ 17,953 (2017 - $ 11,856).