St. Clair Township Crest
1155 Emily Street
Mooretown ON
N0N 1M0

Phone: (519) 867-2021
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Financial Statements – Township of St. Clair

Financial Statements - Township of St. Clair

CORPORATION OF THE TOWNSHIP OF ST. CLAIR
Notes to the Consolidated Financial Statements
Year ended December 31, 2019
Page 9 of 31
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(iv) Trust Funds
Trust funds and their related operations administered by the Township are not
consolidated but are reported separately on the Trust Funds’ Statement of Continuity and
Financial Position.
(b) Basis of accounting
(i) Accrual accounting
The accrual basis of accounting recognizes revenues in the period in which they are
earned and measurable. Expenses are recognized as they are incurred and measurable as
a result of receipt of goods and services and the creation of legal obligation to pay.
(ii) Investments
All of the investments are carried at amortized cost using the effective interest rate
method. Council has the intention to hold investments until maturity.
(iii) Non-financial assets
Non-financial assets are not available to discharge existing liabilities and are held for use
in the provision of services. They have useful lives extending beyond the current year
and are not intended for sale in the ordinary course of operations.
(iv) Tangible Capital Assets
Tangible capital assets are recorded at cost, which includes all amounts that are directly
attributable to acquisition, construction, development or betterment of the asset. The
cost, less residual value, of the tangible capital assets, excluding land are amortized on a
straight-line basis over their estimated useful lives as follows:
Asset Useful Life – Years
Land Improvements 10 – 25
Buildings and building improvements 5 – 50
Machinery and equipment 5 – 50
Linear assets 10 – 90
Amortization for non-infrastructure assets is calculated for six months if purchased
before July. Assets purchased after July 1st are not amortized until the following year.
For infrastructure assets amortization will be recorded in the year following acquisition.
Assets under construction are not amortized until the asset is available for productive
use.