The Company’s tangible assets are reviewed for indications of impairment at each financial statement date. If indication of impairment exists, the asset’s recoverable amount is estimated. Impairment losses  recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any  goodwill allocated to cash-generating units and then to reduce the carrying amount of the other assets in the  unit on a pro-rata basis.  The recoverable amount is the greater of the asset’s fair value less costs to sell and value in use. In  assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax  discount rate that reflects current market assessments of the time value of money and the risks specific to  the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is  determined for the cash-generating unit to which the asset belongs.  The cost of replacing part of an item within property and equipment is recognized when the cost is incurred  if it is probable that the future economic benefits will flow to the Company and the cost of the item can be  measured reliably. The carrying amount of the part that has been replaced is expensed. All other costs are  recognized as an expense as incurred.  Property and equipment are recorded at cost less accumulated amortization. Amortization is recorded using the  straight-line method over five years. Leasehold improvements are amortized on a straight-line basis over the term of  the lease. The estimated maximum useful lives of property and equipment are as follows:  Although the Company has taken steps to verify title to the properties in which it has an interest, in accordance with  industry standards for properties in the exploration stage, these procedures do not guarantee that title to the  properties will not be challenged or impugned. Property title may be subject to unregistered prior agreements and  non-compliance with regulatory requirements.  The Company assesses E&E assets for impairment at each statement of financial position date or whenever facts and  circumstances suggest that the carrying amount of an asset may exceed its recoverable amount. The recoverable  amount is the higher of the asset’s fair value less costs to sell and value in use. If economically recoverable ore reserves are developed, capitalized costs of the related property will be reclassified  as mining assets and will be amortized using the unit-of-production method. When a property is deemed to no longer  have commercially viable prospects to the Company, E&E expenditures in respect of the project are deemed to be  impaired. As a result, those E&E costs, in excess of estimated recoveries, are written off to profit or loss. From time to time the Company may acquire or dispose of a mineral property pursuant to the terms of an option  agreement. As the options are exercisable entirely at the discretion of the optionee, the amounts payable or  receivable are not recorded. Option payments are recorded as property costs or recoveries when the payments are  made or received. Furniture and fixtures  5 years  Computer equipment  5 years  Leasehold improvements Duration of the lease  i.  Subsequent costs  ii.  Impairment  - 9 -  3. Summary of Significant Accounting Policies (Continued)  (e)  Exploration and evaluation assets (“E&E”) (Continued)  (f) Property and equipment  COMMANDER RESOURCES LTD.  (An Exploration Stage Company)  Notes to Financial Statements  For the Years Ended December 31, 2012 and 2011  (Expressed in Canadian dollars) 