Finance
Tangible Capital Assets
In 2009, all municipalities were required to change the way they accounted for physical assets. All assets owned by Leduc County were added to financial statements at their historical cost, including all land, roads and other donated assets that the County did not originally account for. These assets are then amortized each year evenly over the assets useful life. This annual amortization figure on the statement of operations reflects the annual cost to the County for owning its own assets.
For example, Leduc County may purchase a grader in the current year for $350,000, but the grader will last for several years. In order to properly reflect the cost of this grader to the County, the cost is spread across the estimated 20 years that the grader will last, expensing only $17,500 per year for 20 years instead of $350,000 in the purchase year and none in the following 19 years.
