BRITISH COLUMBIA HYDRO AND POWER AUTHORITY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2016 AND 2015
British Columbia Hydro and Power Authority
frequently if events or changes in circumstances indicate that the asset value may not be fully
recoverable.
The expected useful lives, in years, are as follows:
Software 2 – 10
Other 10 – 20
Amortization of intangible assets commences when the asset is available for use and ceases at the
earlier of the date that the asset is classified as held for sale and the date that the asset is derecognized.
(g) Asset Impairment
(i) Financial Assets
Financial assets, other than those measured at fair value, are assessed at each reporting date to
determine whether there is impairment. A financial asset is impaired if evidence indicates that a loss
event has occurred after the initial recognition of the asset, and that the loss event had a negative
effect on the estimated future cash flows of that asset that can be estimated reliably.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the
difference between its carrying amount and the present value of the estimated future cash flows
discounted at the asset’s original effective interest rate. An impairment loss in respect of an
available-for-sale financial asset is calculated by reference to its fair value.
Individually significant financial assets are tested for impairment on an individual basis. The
remaining financial assets are assessed collectively in groups that share similar credit risk
characteristics.
All impairment losses are recognized in net income. Any cumulative loss in respect of an availablefor-sale
financial asset previously recognized in other comprehensive income and presented in
unrealized gains/losses on available-for-sale financial assets in equity is transferred to net income.
An impairment loss is reversed if the reversal can be related to an event occurring after the
impairment loss was recognized. For financial assets measured at amortized cost and available-forsale
financial assets that are debt securities, the reversal is recognized in net income.
(ii) Non-Financial Assets
The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the
asset’s recoverable amount is estimated. For intangible assets that have indefinite useful lives or
that are not yet available for use, the recoverable amount is estimated annually.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together
into the smallest group of identifiable assets that generates cash inflows from continuing use that
are largely independent of the cash inflows of other assets or groups of assets (the cash-generating
unit, or CGU). The recoverable amount of an asset or CGU is the greater of its value in use and its