Corporate

Workplace Safety & Prevention Services 2012 Annual Report 25 December 31, 2012 f. Rental Incentive g. Financial Instruments h. Capital Assets i. Inventory j. Employee Future Benefits k. Pension Plan Workplace Safety & Prevention Services Notes to Financial Statements The Association has entered into a lease that provides a free rent period. The total amount of cash to be paid over the term of the lease is accounted for on a straight-line basis over the term of the lease. The excess of rent expense over cash paid related to free rent periods is reflected in liabilities. Financial instruments are recorded at fair value when acquired or issued. All guaranteed investment certificates 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 statement of financial position date and charged to the financial instrument for those measured at amortized cost. 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 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. The Association follows the CICA requirements for accounting for employee future benefits with respect to its post-retirement life and health benefits plan. Under these requirements, current service cost of post-retirement benefit plans are charged to income annually. Cost is computed on an actuarial basis using the projected benefits method and based on management's best estimates. The Association's contributions to a multi-employer, defined contribution pension plan are expensed when contributions are due. 1. Summary of Significant Accounting Policies (continued)

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