Corporate

2014 annual report  |  Workplace Safety & Prevention Services 22 Workplace Safety & Prevention Services Notes to Financial Statements December 31, 2014 1. suMMary oF sigNiFiCaNt aCCouNtiNg PoliCiEs (continued) g. financial instruments Financial instruments are recorded at fair value when acquired or issued. All guaranteed investment certificates and money market funds have been designated to be in the fair value category, with gains and losses reported in operations in the period in which they arise. All other financial instruments are reported at cost or amortized cost less impairment, if applicable. Financial assets are tested for impairment when changes in circumstances indicate the asset could be impaired. Transaction costs on the acquisition, sale or issue of financial instruments are expensed for those items remeasured at fair value at each balance sheet date and charged to the financial instrument for those measured at amortized cost. h. capital assets Capital assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful life of the assets as follows: Computer software 3 years Office equipment 5 years Computer equipment 3 years Furniture 5 years Leasehold improvements Term of the lease i. inventory Course and seminar inventory is valued at the lower of cost and net realizable value and are expensed in safety product costs. Cost is determined on a first-in, first-out basis. j. employee future Benefits The Association provides certain non-pension post retirement benefits consisting of extended health and other benefits. The defined benefit obligation is based on the most recent actuarial valuation report prepared for accounting purposes. The amount reported on the balance sheet is the difference between the defined benefit obligation and the fair value of plan assets less any valuation allowance. Remeasurements and other items are charged to net assets as they occur. k. pension plan The Association's contributions to a multi-employer, defined contribution pension plan are expensed when contributions are due. l. investment in centre for health & Safety innovation (chSi) The Association is a founding member of Centre for Health & Safety Innovation ("CHSI"), a not- for-profit organization that provides shared premises for the Association and one other Ontario health and safety organization. Under its membership agreement, the Association paid a fee of 74.36% of the start up and operating costs of CHSI up to December 31, 2006. The Association records its payment of the initial costs of CHSI, and its proportionate share of annual operating results on the equity basis. m. write-down of long-lived assets The Association monitors its use of capital assets and when the capital asset no longer has any long term service potential to the organization, the excess of its net carrying amount over any residual value is recognized as an expense in the statement of operations. n. use of estimates The preparation of the financial statements in conformity with the basis of accounting as described in Note 1 (b) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from management's best estimates as additional information becomes available in the future.

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