Corporate

December 31, 2012 Workplace Safety & Prevention Services Notes to Financial Statements 2. First-time Adoption of Canadian Accounting Standards for Not-for-Profit Organizations Effective January 1, 2012, the Association adopted the requirements of the new accounting framework, Canadian accounting standards for not-for-profit organizations (ASNPO) or Part III of the requirements of the Canadian Institute of Chartered Accountants (CICA) Handbook – Accounting. These are the Association's first financial statements prepared in accordance with this framework and the transitional provisions of Section 1501, First-time Adoption have been applied. Section 1501 requires retrospective application of the accounting standards with certain elective exemptions and mandatory exceptions. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended December 31, 2012, the comparative information presented in these financial statements for the year ended December 31, 2011 and in the preparation of an opening ASNPO balance sheet at the date of transition of January 1, 2011. The Association issued financial statements for the year ended December 31, 2011 using Canadian generally accepted accounting principles prescribed by the CICA Handbook – Accounting Part V – Pre- changeover Accounting Standards. The adoption of ASNPO resulted in adjustments to the previously reported liabilities, net assets, excess of revenue over expenses and cash flows of the Association. The changes to net assets at the date of transition of January 1, 2011 were as follows: January 1, 2011 Opening net assets, Pre-changeover Accounting Standards $ 2,668,392 Increase in employee future benefit liability due to recognition of transitional obligation (402,400) Opening net assets, ASNPO $ 2,265,992 A reconciliation of the excess of revenue over expenses reported in the Association's most recent previously issued financial statements to its excess of revenue over expenses under ASNPO for the same period is as follows: 2011 Excess of revenue over expenditures, Pre-changeover Accounting Standards $ 1,159,504 Decrease in employee benefits due recognition of transitional obligation 261,200 Excess of revenue over expenditures, ASNPO $ 1,420,704 The following exemptions were used at the date of transition to ASNPO: Business Combinations The Association elected not to apply Section 1582 – Business combinations retrospectively to past business combinations prior to the date of transition. Estimates In accordance with ASNPO, the Association has applied the mandatory exception from full retrospective application of ASNPO with respect to estimates. Hindsight was not used to create or revise estimates and accordingly the estimates previously made by the Association are consistent with their application under ASNPO as of January 1, 2011. Workplace Safety & Prevention Services 2012 Annual Report 27

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