b'(e) Financial instruments: or the amount the Association expects to realize Financial instruments are recorded at fair valueby exercising its right to any collateral. If events on initial recognition. Equity instruments that areand circumstances reverse in a future year, an quoted in an active market are subsequentlyimpairment loss will be reversed to the extent measured at fair value. All other financialof the improvement, not exceeding the initial instruments are subsequently recorded at cost carrying value. or amortized cost, unless management has (f) Use of estimates:elected to carry the instruments at fair value. The preparation of financial statements requires The Association has not elected to carry any management to make estimates and assumptions such financial instruments at fair value. that affect the reported amounts of assets and Transaction costs incurred on the acquisition ofliabilities and disclosure of contingent assets and financial instruments measured subsequently atliabilities at the date of the financial statements fair value are expensed as incurred. All otherand the reported amounts of revenue and financial instruments are adjusted by transactionexpenses during the year. Significant items subject costs incurred on acquisition and financingto such estimates and assumptions include the costs, which are amortized using the straight-lineallowance for doubtful accounts, accruals for method. processing end-of-life electronic products and Financial assets are assessed for impairment onenvironmental handling fees, accrued revenue an annual basis at the end of the fiscal yearand amortization of capital assets. Actual results if there are indicators of impairment. If therecould differ from those estimates.is an indicator of impairment, the Association2. Accounts receivable:determines if there is a significant adverse change in the expected amount or timing of futureIncluded in accounts receivable is an amount totaling cash flows from the financial asset. If there is a$1,400,000 (2019 - $1,400,000) owing from the British significant adverse change in the expected cashColumbia administration service provider that was flows, the carrying value of the financial assetadvanced in order to finance the regions operations.is reduced to the highest of the present valueThe advance is unsecured, non-interest bearing andof the expected cash flows, the amount thatdue on demand.could be realized from selling the financial asset 3. Capital assets2020 2019AccumulatedNet book Net book Costamortizationvalue valueSoftware$ 812,959$ 682,243$ 130,716 $ 139,553Furniture and equipment140,732130,9269,806 15,042Equipment13,05011,9631,087 3,480Leasehold improvements203,717170,62033,097 59,860 $ 1,170,458$ 995,752$ 174,706 $ 217,935EPRA ANNUAL REPORT 2020 27'