Notes to Consolidated Financial Statements Marketable securities Capital assets Deferred sales commissions Intangible assets Fund contracts [in thousands of Canadian dollars, except per share amounts] December 31, 2012 and 2011 Marketable securities consist of investments in mutual fund securities and publicly traded companies. Marketable securities  are measured at fair value and recognized on trade date. Mutual fund securities are valued using the net asset value per  unit of each fund. The fair value of publicly traded companies is determined using quoted market prices. Realized and  unrealized gains and losses are recognized using average cost. Except for impairment losses, gains and losses in the fair value  of marketable securities are recorded as other comprehensive income (loss) until disposed of, at which time any gain or loss is  recorded in net income. When a decline in fair value is other than temporary and there is objective evidence of impairment,  the cumulative loss that had been recognized directly in other comprehensive income (loss) is removed and recognized in net  income, even though the financial asset has not been derecognized. Distributions from mutual fund securities are recorded  as other income. Distributions that are reinvested increase the cost base of the marketable securities. Capital assets are recorded at cost less accumulated amortization. These assets are amortized over their estimated useful  lives as follows: Computer hardware  Straight-line over three years Office equipment  Straight-line over fi ve years Leasehold improvements  Straight-line over the term of the lease Commissions paid on sales of deferred sales charge mutual funds represent commissions paid by CI to brokers and dealers,  and are recorded on the trade date of the sale of the applicable mutual fund product. Deferred sales commissions are  amortized over the expected investment period of 24 to 84 months on a straight-line basis from the date recorded. When redemptions occur, the actual investment period is shorter than expected, and the unamortized deferred  sales commission related to the original investment in the mutual funds is charged to net income and included in the  amortization of deferred sales commissions. Fund administration contracts and fund management contracts [collectively, “fund contracts”] are recorded net of any  write-down for impairment. CI evaluates the carrying amounts of fund contracts for potential impairment by comparing the  recoverable amount with their carrying amounts. These evaluations are performed on an annual basis or more frequently  if events or changes in circumstances indicate a potential impairment. Any impairment would be written off to income. 56