Other current assets

12 Months Ended

Dec. 31, 2020

Other current assets

Other current assets

15.   Other current assets

As at December 31,	2020		2019
Advances against auction contracts	$	6,487	$	12,925
Assets held for sale		—		15,051
Prepaid expenses and deposits		20,787		22,184
	$	27,274	$	50,160

Advances against auction contracts

Advances against auction contracts arise when the Company pays owners, in advance, a portion of the expected gross auction proceeds from the sale of the related assets at future auctions. The Company’s policy is to limit the amount of advances to a percentage of the estimated gross auction proceeds from the sale of the related assets, and before advancing funds, require proof of owner’s title to and equity in the assets, as well as receive delivery of the assets and title documents at a specified auction site, by a specified date and in a specified condition of repair.

Advances against auction contracts are generally secured by the assets to which they relate, as the Company requires owners to provide promissory notes and security instruments registering the Company as a charge against the asset. Advances against auction contracts are usually settled within two weeks of the date of sale, as they are netted against the associated auction proceeds payable to the owner.

Assets held for sale

Balance, December 31, 2018	$	15,051
Reclassified from property, plant and equipment		4,071
Disposal		(4,071)
Balance, December 31, 2019		15,051
Reclassified to property, plant and equipment		(6,888)
Disposal		(8,163)
Balance, December 31, 2020	$	—

The Company’s assets held for sale have consisted of excess auction sites located in the United States, which belonged to the A&M segment. Management made the strategic decision to sell certain excess acreage to maximize the Company’s return on invested capital. During the year ended December 31, 2020, the Company sold excess auction site acreage in the United States. The Company also sold the property that was reclassified to property, plant and equipment during the first quarter of 2020. The sale of the two properties resulted in combined proceeds of $15,555,000 and a combined pre-tax gain of $1,090,000 (2019: $571,000 gain related to the sale of property located in the United States ; 2018: $1,439,000 gain related to the sale of property located in Canada and the United States).