Corporate

23 2014 annual report  |  Workplace Safety & Prevention Services Workplace Safety & Prevention Services Notes to Financial Statements December 31, 2014 2. CHaNgE iN aCCouNtiNg PoliCy aND Prior PErioD aDjustMENt – CorrECtioN oF Error Effective January 1, 2014, the Association adopted the provisions of the CPA Canada Handbook – Section 3463 – Reporting Employee Future Benefits by Not-for-Profit Organizations, on a retrospective basis. The Association adopted the immediate recognition method relating to employee future benefits and adopted to recognize the remeasurement of the employee future benefits liability as a separately identified line item in the statement of changes in net assets rather than in the statement of operations. A reconciliation of the excess of revenue over expenditures reported in the Association's financial statements to its excess of revenue over expenditures under the immediate recognition method for the same period is as follows: 2013 Excess of revenue over expenditures, as previously stated $ 1,037,450 Decrease in employee benefits due to recognition of remeasurement of employee future benefits directly in the statement of changes in net assets 1,434,800 Excess of revenue over expenditures for the year ended, as restated $ 2,472,250 As a result, the financial statement amounts that are presented for comparative purposes have been restated on a retrospective basis as follows: Increase in employee future benefits liability $ 19,337,900 Decrease in unrestricted net assets $ 19,337,900 Decrease in employee benefits expense $ 1,434,800 Increase in revenue over expenditures $ 1,434,800 Prior to the amalgamation, as a result of unauthorized capital asset purchases in 2008, the WSIB required that the cost of the accumulated unauthorized capital asset purchases be repaid by the funding to WSPS on a dollar for dollar basis. The deficiency was fully addressed in the prior year. The Association continued to show this amount as an allocation to deferred MOL surplus in error. The effect of the restatement of the Association's financial statements as at and for the year ended December 31, 2013 was as follows: December 31, 2013 Previously Presented Adjustment Restated Deferred MOL surplus $ 3,500,000 $ (3,500,000) $ — Unrestricted net assets 3,750,000 3,500,000 7,250,000 Ministry of Labour/Workplace Safety and Insurance Board Funding 30,384,446 3,500,000 33,884,446

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