Actsafe Safety Association
Notes to the Financial Statements
December 31, 2017
2.
3.
4.
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 (“AED’s”) that are rented to customers on a
cost‐recovery basis. The AED’s are recorded at cost and amortized over their five year estimated life on a
straight‐line basis.
Term deposit
Term deposit of $ 230,000 (2016 ‐ $ 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.
Property and equipment
Cost
Leasehold improvements
Office equipment
Furniture and fixtures
200,783
100,053
80,981
381,817
Cost
Leasehold improvements
Office equipment
Furniture and fixtures
200,783
96,584
76,943
374,310
Accumulated
amortization
2017
$
Net
75,294
45,442
40,168
125,489
54,611
40,813
160,904 220,913
Accumulated
amortization
2016
$
Net
25,098
32,224
30,468
175,685
64,360
46,475
87,790 286,520
Included in property and equipment are assets under a capital lease with a cost of $ 42,343 (2016 ‐ $ 42,343)
and accumulated amortization of $ 11,856 (2016 ‐ $ 4,234).