Policy 2.3.2: Assets - Appendix A - E

Effective: April 1, 1998
Responsibility: Vice-President and Chief Financial Officer

APPENDIX A - Capital Assets

Classifications and Amortization Rates

Useful Life Account Class Description

(Nil % amortization)

15410

1000

Land

Land

Surveys and Borings

33 years

15420

2000

Buildings and Land Improvements

Roads and Walks

Fences and Gates

Ditches and Culverts

Landscaping and Ground Improvements

General Contractor's Work

Demolition

Excavation

Draining and Septic Systems

Concrete and Reinforcing

Masonry

Waterproofing

Roofing and Sheet Metal

Structural Steel

Rough Carpentry

Finished Carpentry and Millwork

Lathe and Plaster

Floor Finishes

Wall Finishes

Ornamental Metals

Thermal Insulation

Sound Absorption

Sound Isolation

Hardware

Built-in Furnishings

Glass and Glazing

Painting and Decorating

Hoists, Elevators, Escalators

Staging Equipment (Immovable)

Surveys and Borings

Power Wiring

Domestic Wiring

Studio Wiring

Transmitter Wiring

Miscellaneous Wiring

Grounding

Television Lighting

Plumbing, Sewage and Drainage

Ventilation

Heating

Water Supply

Fire Protection (Fixed)

Vacuum Air Systems

Pressure Air Systems

Chilled Water Systems

1 year

15420

2000*

Service Extensions Property/Buildings/Grounds

Water

Sewer

1 year

15443

2000*

Services Extensions - Property and Equipment

Power

Telephone

Broadcasting Circuits

20 years

15430

3000

Transmitter Equipment Technical

Transmitter and Speech Input

Transmitter Control Desk

N/A

N/A

3200

Low Value Assets

20 years

15441

4000

Transmission Lines

R.F. Transmission Lines

Power Transmission Lines

Control Communication Lines

20 years

15442

5000

Antennas and Towers

Foundation and Piers

Structural

Painting

Radiators

Lighting - Power

Ground Systems

Surveys and Borings

8 years

15443

6000

Technical Equipment

Receivers and Speech Input Equipment

Radio Frequency 7 Link Equipment

Master Control Studio (Excluding Reproducers)

Recording Sound Effects

Portable, Mobile Intercommunication

Office Monitor

Clocks

Test Equipment

Tools and Shop Equipment

Photographic Equipment

Disc and Tape Reproducers

Videotape Equipment

16 years

15444

7000

Electrical Equipment

Power Equipment

Power Plants

TV Lighting Equipment - Fixed Special

Lighting Fixtures (Reel and Script Lights)

5 years

15450

8000

Automotive Equipment (5 year useful life)

Automobiles

Cars

Minivans

8 years

15450

8001

Automotive Equipment (8 year useful life)

Light Trucks

Pickup trucks

Sports Utility Vehicles (SUV’s)

large and small Vans

10 years

15450

8002

Automotive Equipment (10 year useful life)

Snowmobiles
All Terrain Vehicles (ATV’s)

12 years

15450

8003

Automotive Equipment (12 year useful life)

TV Mobile - Truck

Radio Mobile - Truck

Heavy Duty Truck (5T and 10T)

20 years

15450

8004

Automotive Equipment (20 year useful life)

TV Mobile – Trailer

Bulldozer

Skidozer

Backhoe

Fork-lifts

Lift-Trucks

(Nil % amortization)

15450

8004

Automotive Equipment (no amortization)

Utility Trailer

10 years

15461

9000

Musical Instruments

(Nil % amortization)

15462

10000

Works of Art

10 years

15463

11000

Office Furniture, Furnishings and Equipment

Building Furniture and Furnishings

Property Maintenance Equipment

Fire Protection (Movable Equipment)

Signs erected on Property or attached to buildings

(Movable and immovable)

Staging Equipment (Movable)

5 years

15464

12000

Computers and Related Equipment (5 year useful life)

Mainframe - Hardware

Mainframe – Software

Other IT equipment

3 years

15464

12001

Computers and Related Equipment (3 year useful life)

Desktop Computer – Hardware

Desktop Computer – Software

Term of Lease

15510

14000

Lease Improvements

Term of Lease

15610

15000

Capital Leases

N/A

15110

16000

Capital Assets Under Construction

* Not valid for input to the capital assets sub-ledger.


APPENDIX B

CAPITAL VS OPERATING


CAPITAL EXPENDITURE DEFINITION

The Corporation must adhere to CICA’s Generally Accepted Accounting Principles (GAAP).

Refer to the definition of capital asset in section 3 of this policy - Definitions And Accounting Treatment.

Betterments and Repairs:

The CICA Handbook differentiates between a ‘Betterment’ and a ‘Repair”. It defines a betterment as ‘the cost incurred to enhance the service potential of a capital asset.’ The cost incurred in the maintenance of the service potential of a capital asset is a repair not a betterment.

Maintenance:

Maintenance can be defined as "the act of keeping a property in condition to perform adequately and efficiently the service for which it is used, that is normal usable condition." Maintenance would generally be classified as an operating expense.

Repairs:

Repairs are usually charged to operations.

Extraordinary repairs, which do not add to the value of an asset nor appreciably prolong its life beyond that contemplated when it was purchased or constructed, are also considered to be operating expenses as opposed to capital. For example, roof replacement, while extraordinary in amount, merely keeps the building in normal operating condition, does not add to the service potential or prolong its useful life.

Replacements:

Replacements involve the removal of a major part or component of plant or equipment and the substitution of a new part or component of essentially the same type and performance capabilities. Such costs are generally operational in nature and should not be confused with the replacement of stand-alone units, such as mobiles, cameras, transmitters, etc., which fall under the Capital Vote.

Improvements:

Improvements can be either operational or capital. If the improvements do not add to the value and useful life of the asset, it is operational in nature. If on the other hand, the improvements, such as the replacement of old windows with new energy saving windows, adds to the value of the asset and prolongs its useful life, it is capital.

Additions:

Additions are extensions, enlargements or expansions of an existing asset and typically enhance the service potential of the asset, and as such should be treated as capital.

To summarize, assets should be classified as "capital assets" (and be funded from the capital vote):

  • If the asset is a stand-alone item (i.e., it can function independently, such as a computer, a camera, a transmitter, etc.);
  • If the asset will be productive or benefit the Corporation for more than one year;
  • If the cost outlay or project results in a "Betterment" to an existing asset (i.e., replacing old windows in a building with new energy saving windows);
  • If the cost represents a replacement of a stand-alone asset (i.e., a vehicle or a camera) rather than an improvement or essential maintenance (such as overhauling a heating system).


APPENDIX B

Check list for determining whether costs are accounted for as Capital or Operating

Capital

Operating

1 Item is a stand alone "tangible fixed" asset 5K or more (turn it on or plug it in & it works)

X

2 Expenditures related to CBC/Radio-Canada owned property (5K or more)

2.1 Expenditures which increase the replacement or market value of a building

X

2.2 Expenditures to repair the existing building structure (normal maintenance)

X

2.3 Expenditures to extend and/or improve the structure (addition to building)

X

2.4 New equipment and/or additions/extensions to existing properties

X

2.5 Normal maintenance & repairs to existing equipment/property

X

2.6 Expenses incurred to move, either within or from one facility/location to another

X

3 Expenditures/Improvements to Leased Properties (5K or more)

3.1 Improvements required to a new leased property before it can be occupied (i.e. the existing structure, layout or floor plan is not suitable for operations)

X

3.2 Improvements to leased properties currently occupied

X

3.3 Moving, maintenance, structural repairs and cosmetic improvements

X

3.4 Tangible Fixed Assets, over 5K and owned by CBC/Radio-Canada, which can be removed at the end of the lease

X

4 Costs incurred to develop a New Web Site

4.1 Costs incurred in the planning stage

X

4.2 Initial Corporate Web site developments; application & infrastructure (hardware, software and graphics)

X

4.3 Development of content and conversion from old to new systems

X

4.4 Costs during operating stage – training, administration, maintenance, etc.

X

4.5 Major Enhancements to software which provide significantly improved or additional functions and/or features

X

5 Acquisition, Construction, Development or Betterment of Computer Software for internal use that provides a future benefit (including Licenses)

5.1 Software/license costs greater than 5K per licence (requires ruling review)

X

5.2 Software/license costs less than 5K per licence

X

5.3 Purchase of additional licenses for expansion or replacement which provides no betterment or future benefit, regardless of the cost

X

6 Software Maintenance & Support Costs

6.1 Maintenance/support costs incurred during development phase prior to implementation

X

6.2 Post-implementation maintenance/support costs

X

7 Consolidation Projects

7.1 Training costs, during implementation and post-implementation (see # 10 – Training Costs below)

X

7.2 Moving costs and costs associated with an “Open House” or staff function

X

7.3 All other costs, other than training and moving to refit premises (see # 10 – Training Costs below)

X

8 Other projects, which extend and/or improve the life and/or the sale or market value of an existing asset or improve the efficiency and/or quality or output of an existing asset

8.1 If the total cost is 5K or more and can be attributable to an individual asset

X

8.2

If cost of individual stand alone components is less than 5K, but the cost of the project is over 5K, and if one of the assets costs 5K or more and if the project meets the criteria defined in # 8 above

X

8.3 If the individual purchases are below 5K and considered to be maintenance of existing assets.

X

9 Pre-planning/project costs (i.e. costs incurred before the project is submitted for approval)

9.1 Consulting/research & other costs to determine whether a project is feasible, regardless whether the project is approved or not approved

X

9.2 Costs, which a project would normally capitalize if approved (i.e. Engineering, Drafting, etc.), and where the project is subsequently approved

X

9.3 Costs, which a project would normally capitalize if approved (i.e. Engineering, Drafting, etc.), and where the project is subsequently not approved

X

10 Training Costs
“Hard” costs – construction of training facilities, purchase of equipment over 5K, etc.

X

“Soft” costs – salaries and consulting fees, room rentals, training supplies, etc.

X



APPENDIX C

LOCATION CODES

SAP – ASSET RECORDS

GUIDELINES AND PROCEDURES

TRACKING AND MANAGEMENT OF ASSETS

Assets are tracked and managed in SAP using the following fields and codes:

  • Cost Center (usually the center in which the asset is located)
  • Location Code (the city, town, municipality, etc.), which is linked to a Plant Code
  • Plant Code (the plant to which the asset is linked which has responsibility for tracking and managing the asset), which is linked to a Location Code
  • Room Number (the actual room within a building in which the asset is located)

RESPONSIBILITY FOR CONTROL OVER LOCATION CODES

  • The Corporate Manager, Master Data and Security, Head Office, will be responsible for the control and maintenance of the location code table in SAP on the advice and recommendations of the designated Network Finance and Administration Officers.
  • Consultation with the Corporate Manager, Property Management is required to ensure that Finance and Administration and Property Management use the same code to identify the same property.
  • The tables will be reviewed and updated on an ongoing basis.


LOCATION CODES

Location codes will be comprised of six digits, the first four for City/Town/Location and the other two for address

  • There should be only 1 four-digit code for each City/Town/Location.
  • There should be only 1 two-digit code for each site/address.
  • The location “name” in SAP should be complete and clearly identify the location.
  • All locations should have a name (usually city, town, municipality, etc.).
  • When it is confirmed that CBC/Radio-Canada no longer occupies a location, the person responsible for maintaining the location codes will verify if there are assets still assigned to that location and if so, notify the network office to “move” the assets in SAP.
  • In order to avoid assigning assets to a location, which the CBC/Radio-Canada no longer occupies, access to the location code may have to be blocked or deactivated.

Assets Transfer Notice Form (33.5 kb MS Excel)


APPENDIX D

LOW VALUE ASSETS (LVA) TO BE MANAGED IN SAP

The media and support Vice Presidents have approved the following list of assets to be tracked and managed in SAP. The guidelines pertaining to this list include the following:

  • Such assets must be tracked and managed in Class 31 – Low Value Assets
  • Individual managers can add to the list, however, they cannot delete assets from this list
  • Individual managers are responsible for the deletion of such assets from SAP, once the assets have been traded-in, sold, donated, lost, stolen or scrapped and/or are of no further use to the Corporation
  • Assets not included on the list may be tracked and managed either in SAP or outside SAP

The approved list includes the following types of assets:

  • Wireless Transmitters
  • Wireless Receivers
  • High End Microphones
  • Laptop Computers
  • Desktop Computers
  • Digital Still Cameras
  • Consumer Video Cameras
  • Portable TV Sets, VCRs, Professional CD Players and Video Projectors

APPENDIX E

FORMS

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