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9. Tangible capital assets are non-financial assets having physical substance that:
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Are held for use in the production or supply of goods and services, for rental to others, for administrative purposes or for the development, construction, maintenance or repair of other tangible capital assets.
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Have useful economic lives extending beyond an accounting period.
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Are to be used on a continuing basis.
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Are not for sale in the ordinary course of operations.
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10. Useful life is the estimate of either the period over which a local government expects to use a tangible capital asset, or the number of production or similar units that it can obtain from the tangible capital asset. The life of a tangible capital asset may extend beyond its useful life. The life of a tangible capital asset, other than land, is finite, and is normally the shortest of the physical, technological, commercial and legal life.
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11. Write-down is a reduction in the cost of a tangible capital asset to reflect the decline in the asset’s value due to a permanent impairment.
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12. Work in Progress (WIP) is the accumulation of costs for TCA that are in construction or development in progress but are not yet in use or the capital project is still open to accumulate costs.