D r a f t f o r d i s c u s s i o n o n l y 9 CANADIAN SCHOOL BOARDS ASSOCIATIONS L'ASSOCIATION CANADIENNE DES COMMISSIONS/CONSEILS SCOLAIRES NOTES TO FINANCIAL STATEMENTS MARCH 31, 2019 2. Significant accounting policies (continued) Cash and cash equivalents The Association's policy is to disclose bank balances under cash and cash equivalents. Capital assets Capital assets are accounted for at cost. Amortization is calculated on their respective estimated useful lives using the declining balance method at the following rates: Rates Office furniture and equipment 20% Computer hardware 30% Impairment of long-lived assets Capital assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized when the carrying amount of the asset exceeds the sum of the undiscounted cash flows resulting from its use and eventual disposition. The impairment loss is measured as the amount by which the carrying amount of the long- lived asset exceeds its fair value. Financial instruments Measurement of financial instruments The Association initially measures its financial assets and financial liabilities at fair value, except for certain non-arm's length transactions The Association subsequently measures all its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash, term deposit and accounts receivable. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities.