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Property, Plant and Equipment

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Property, Plant and Equipment

5. Property, Plant & equipment

		2011				Accumulated				2011
		Cost				Depreciation				Net
Buildings		$	3,216,859			$	1,649,274			$	1,567,585
Plant under construction and equipment			5,818,794				—				5,818,794
Computer hardware			102,735				78,385				24,350
Furniture and fixtures			29,014				20,084				8,930
Office equipment			24,702				20,130				4,572
Manufacturing equipment			2,430,178				1,848,721				581,457
Trailer			28,941				19,739				9,202
Trade show booth			9,009				8,244				765
Truck			12,327				7,963				4,364
Land			487,365				—				487,365
		$	12,159,924			$	3,652,540			$	8,507,384

		2010				Accumulated				2010
		Cost				Depreciation				Net
Buildings		$	3,216,859			$	1,566,462			$	1,650,397
Plant under construction and equipment			5,059,497				—				5,059,497
Computer hardware			100,733				72,557				28,176
Furniture and fixtures			28,391				18,654				9,737
Office equipment			23,954				19,028				4,926
Manufacturing equipment			2,392,162				1,772,207				619,955
Trailer			28,065				17,566				10,498
Trade show booth			8,736				7,863				873
Truck			11,954				6,976				4,979
Land			478,634				—				478,634
		$	11,348,985			$	3,481,313			$	7,867,672

Amount of depreciation expense for 2011: $163,345 (2010: $174,558)

As of June 30, 2011, the following capitalized costs pertaining to the Company’s new plant in Taber, Alberta are classified as Plant Under Construction and Equipment and include contracted costs and supplies. Interest costs are expensed as incurred. The Company will not begin depreciating the Plant and Equipment until it becomes operational.

		June 30,				December 31,
		2011				2010
Building			1,096,684				1,063,471
Building improvements			1,122,338				1,085,613
Manufacturing equipment			3,458,134				2,773,064
Technology			141,638				137,349
			5,818,794				5,059,497

The following carrying amount of capital assets held by Flexible Solutions Ltd. serves as collateral for the AFSC loan. (See Note 9b):

Land		$	288,272
Building			1,092,980
Building improvements			1,122,338
Manufacturing equipment			3,522,096
Trailer			9,202
Truck			4,364
Trade show booth			765
Technology			141,638

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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