• 6.3. Amortization & Useful Life - TCAs will be assigned an appropriate amortization method and useful life for recording and reporting purposes in the Finance TCA sub-ledger. Strategies employed to assign useful lives to assets include, but are not limited to: engineering estimates, historical precedent of longevity of similar assets, design estimates.
  
  
• 6.4. Acquisitions will be administered in accordance with Purchasing By-Law 93-2012 and amendments thereto, and Donations Policy CS.A1.07 and will be recorded including all costs associated with making the asset operational, in the calendar year purchased/donated. The one-half (½) year rule will be applied for recording purposes for all assets where the actual InService date is not readily identifiable.
  
  
• 6.5. Disposals of TCAs will be administered in accordance with Purchasing By-Law 93-2012 and amendments thereto, Part XIII – Disposal of Surplus and Obsolete Goods. All revenue must be recorded to general ledger account 6955 within the appropriate department.
  
  
• 6.6. Betterments - A betterment must significantly improve one of the following: physical output or service capacity, lower operating cost, useful life or quality of output. All reported betterments will be evaluated through a case-by-case consultative process.
  
  
• 6.7. Write Downs - Normal wear and tear does not constitute a write-down and is considered normal amortization. All reported write-downs will be evaluated based on a case-by-case consultative process.
  
  
• 6.8. TCA Capital Leases - All reported capital leases will be evaluated based on a case-by-case consultative process and in accordance with Public Sector Guideline PSG-2, Leased Tangible Capital Assets.
  
  
• 6.9. Heritage/Cultural Assets - Assets such as works of art and historical treasures are not subject to capitalization and amortization since it is not possible to make a reasonable estimate of the future benefits of such property. However, existence of such assets will be disclosed as a note to the financial statements.

7. REFERENCES AND RELATED DOCUMENTS

• 7.1. TCA Terms & Definitions – Schedule A

• 7.2. TCA Categories and Thresholds – Schedule B

• 7.3. TCA Acquisition Procedure TCA-B1-11

• 7.4. TCA Disposal Procedure TCA-B2-11

• 7.5. TCA Betterment Procedure TCA-B3-11

• 7.6. TCA Write-Down Procedure TCA.B4-11

• 7.7. Purchasing By-Law 93-2012 and Amendments Thereto

• 7.8. Donations Policy CS.A1.07

• 7.9. Section PS-3150 – Tangible Capital Assets ( Public Sector Accounting Handbook )

• 7.10.Section PSG-2 – Leased Tangible Capital Assets (Public Sector Accounting Handbook)