Notes to the Consolidated Financial Statements
Dollar amounts are in thousands of Canadian dollars (except share and per share amounts)
2. Significant Accounting Policies (continued) 
(i) Completed investment property
Investment properties are measured initially at cost, including transaction costs. Transaction costs include deed transfer taxes and various 
professional fees.  Subsequent to initial recognition, investment properties are recorded at fair value. Fair value is determined based on a 
combination of internal and external processes and valuation techniques. Gains and losses arising from changes in fair values are included 
in the income statement in the year in which they arise.
Investment property is derecognized when it has been disposed of or permanently withdrawn from use and no future economic benefit 
is expected. Any gains or losses on the retirement or disposal of investment property are recognized in the Statements of Income and 
Comprehensive Income in the year of retirement or disposal.
Transfers are made to investment property when, and only when, there is a change in use, evidenced by the commencement of operating 
leases. t ransfers are made from investment property when, and only when, there is a change in use, evidenced by commencement of 
development.
(ii) Investment property under construction (“IPUC”)
The cost of development properties includes direct development costs, realty taxes and borrowing costs directly attributable to the 
development. Under the requirements of International Accounting Standard 40 ‑ Investment Property (“IAS 40”), IPUC is measured at 
fair value at each reporting date, with the recognition of gains or losses in the income statement. If the fair value of IPUC is not reliably 
determinable, but the Company expects the fair value of the property to be reliably determinable when construction is complete, it 
measures that investment property under construction at cost until either its fair value becomes reliably determinable or construction is 
completed (whichever is earlier).
(iii) Borrowing costs related to IPUC
Although IPUC is measured at fair value, Killam’s policy is to present its Statements of Income and Comprehensive Income as if borrowing 
costs related to the construction are capitalized.  Borrowing costs directly attributable to the acquisition or construction of an asset that 
necessarily takes a substantial period of time to get ready for its intended use or sale are recorded as part of the cost of the respective 
assets. The interest  is calculated using the Company’s weighted average cost of borrowings after adjusting for borrowings associated 
with specific developments. Where borrowings are associated with specific developments, the amount is the gross interest incurred on 
those borrowings less any investment income arising on their temporary investment. interest is capitalized from the commencement of 
the development work until the date of substantial completion. The capitalization of borrowing costs is suspended if there are prolonged 
periods when development activity is interrupted. Interest is also capitalized on the purchase cost of a site or property acquired specifically 
for redevelopment but only where activities necessary to prepare the asset for redevelopment are in progress. The Company considers 
substantial completion to have occurred when the property is capable of operating in the manner intended by management.
(G) Property and Equipment
Property and equipment are stated at historical cost less accumulated depreciation and are mainly comprised of head office buildings, 
leasehold improvements and IT systems. The estimated useful lives, residual values and depreciation method are reviewed at each 
yearend, with the effect of any changes in estimate accounted for prospectively. These items are amortized on a straight‑line basis over 
their estimated useful lives ranging as follows: 
  Building      40 years
  Heavy equipment     15 years