and other key assumptions. We recognize a loss on this kind of transaction, which is included in Other income . The loss partly depends on the carrying amount of the accounts receivable that are transferred. We allocate this amount to accounts receivable sold, or to our retained interest, according to its relative fair value on the day the transfer is made. Accounts receivable are transferred on a fully-serviced basis. As a result, we: • recognize a servicing liability on the day accounts receivable are transferred to the trust • amortize this liability to earnings over the expected life of the transferred accounts receivable. We carry capital assets at cost, less accumulated amor- tization. Most of our telecommunications assets are amortized using the group depreciation method. When we retire assets in the ordinary course of busi- ness, we charge their original cost to accumulated amortization. In general, we amortize capital assets on a straight-line basis over the estimated useful lives of the assets. We review the estimates of the useful lives of the assets every year and adjust them if needed. Capital Assets Costs of Issuing Debt and Equity Accounting for Investments Equity Method Cost Method Goodwill Indefinite-Life Intangible Assets Goodwill • we identify a potential impairment by comparing the fair value of a reporting unit to its carrying value. Fair value is based on estimates of discounted future Bell Canada Enterprises  2004 Annual Report 87 We use the following methods to account for invest- ments that are not consolidated or proportionately consolidated in our financial statements: • the equity method for our investments in companies where we have a significant influence on their operat- ing, investing and financing activities • the cost method for our investments in all other companies. We include investments in  Other long-term assets on the balance sheet. Earnings from investments are included in  Other income in the statement of operations. We expense declines in the fair values of our invest- ments when management considers them to be longer term. The expense is included in  Other income in the statement of operations. The investment is recorded at cost. Dividends received or receivable from the invest- ment are included in our  net earnings. An investment is initially recorded at cost and adjust- ments are made to include our share of the investment’s net earnings or losses. These adjustments are included  in our net earnings. The amount of our investment  is reduced by the amount of dividends received or receiv- able from the investment. The costs of issuing debt are capitalized in  Other long- term assets . They are amortized on a straight-line basis over the term of the related debt and are included in Interest expense in the statement of operations. The costs of issuing equity are reflected in the statement  of deficit. Goodwill is created when  we acquire a business. It is calculated by deducting the fair value of the net assets acquired from the considera- tion given and represents  the value of factors that  contribute to greater earning power, such as a good  reputation, customer loyalty or intellectual capital. Our indefinite-life intangible assets consist mainly of the Bell brand name, spectrum licences and television licences. We assess these assets for impairment in the fourth quarter of every year and when events or changes in circumstances indicate that an asset might be impaired. We calculate the impairment by deducting the asset’s fair value, based on estimates of discounted future cash flows or other valuation methods, from its carrying value. Any excess is deducted from earnings. We assess goodwill of individual reporting units for impairment in the fourth quarter of every year and when events or changes in circumstances indicate that goodwill might be impaired. We assess goodwill for impairment in two steps: We capitalize construction costs, labour and overhead (including interest) related to assets we build or develop. We capitalize some of the costs of developing or buying software for internal use. We expense software maintenance and training costs when they are incurred. The expense is included in  Operating expenses in the statement of operations. We assess capital assets for impairment when events or changes in circumstances indicate that we may not be able to recover their carrying value. We calculate impairment by deducting the asset’s fair value, based on discounted cash flows expected from its use and disposition, from its carrying value. Any excess is deducted from earnings. ESTIMATED USEFUL LIFE Telecommunications assets 10 to 25 years Machinery and equipment 2 to 20 years Buildings 10 to 40 years Satellites 10 to 15 years Finite-life intangible assets Software 3 to 7 years Customer relationships 5 to 40 years