OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024
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Summary of significant accounting policies - Continued (c) Financial instruments (i) Measurement of financial instruments
OPEIC initially measures its financial assets and liabilities at fair value and subsequently measures all of its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash, term deposits, accounts receivable and the reserve. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities. (ii) Impairment Financial assets measured at cost are tested for impairment when there are indicators of impairment. The amount of the write-down is recognized in the statement of operations. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in the statement of operations. (iii) Transaction costs OPEIC recognizes its transaction costs in the statement of operations in the period incurred. However, financial instruments that will not be subsequently measured at fair value are adjusted by the transaction costs that are directly attributable to their origination, issuance or assumption. (d) Intangible asset The intangible asset is recorded at cost. OPEIC provides for amortization using the following method at a rate designed to amortize the cost of the intangible asset over its estimated useful life. The annual amortization rate is as follows: ERP software 5 years straight line
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