Investor Presentaiton
28
Charlottetown Airport | 2013 Annual Report
Deferred government contributions
Government contributions relating to the acquisition of capital assets are recorded as deferred capital
contributions. These amounts are amortized on the same basis as the related capital assets are amortized.
Government grants relating to expenses are shown as revenue in the period in which the related expenses are
incurred.
Capital assets and amortization
Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair value at the date
of contribution. Amortization of capital assets is calculated using the straight-line method. The estimated
useful life of individual assets within a category is determined upon acquisition and once it is put into use, the
asset's cost is written off over this term as follows:
Mobile equipment
Equipment and furniture
Business park
Leasehold improvements
Use of estimates
1 - 25 years
2-15 years
40 years
5 - 25 years
The preparation of these financial statements in conformity with Canadian accounting standards for not-
for-profit enterprises requires management to make estimates and assumptions that affect the reported
amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the current period. Significant items
subject to such estimates and assumptions include the valuation of accounts receivable, and the estimated
useful life of capital assets. Actual results could differ from those estimates.
Financial instruments
(a) Measurement of financial instruments
Charlottetown Airport Authority Inc.'s financial instruments consist of cash, short-term investments,
accounts receivable, long-term investments, accounts payable and accrued liabilities and security
deposits.
The company initially measures its financial assets and financial liabilities at fair value adjusted by, in
the case of a financial instrument that will not be measured subsequently at fair value, the amount of
transaction costs directly attributable to the instrument. This fair value amount is then deemed to be
the amortized cost of the financial instrument.
The company subsequently measures all its financial assets and financial liabilities at amortized cost.
Investments are classified as short-term or long-term based on their individual maturity dates.View entire presentation