THE CONTRIBUTORY PENSION PLAN FUND FOR EMPLOYEES OF TRANSIT WINDSOR
(Registration Number 353821)Notes to Financial Statements (continued)
(in thousands of dollars unless otherwise stated)
Year ended December 31, 2019
3. Significant accounting policies (continued):
- (c) Financial assets and financial liabilities (continued):
- Non-derivative financial assets (continued):
On derecognition of a financial asset, the difference between the carrying amount of the asset and consideration received is recognized in the statement of changes in net assets available for benefits as a net realized gain (loss) on sale of investments. - Non-derivative financial liabilities:
All financial liabilities are recognized initially on the trade date at which the Plan becomes a party to the contractual provisions of the instrument.
The Plan derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired.
Financial assets and liabilities are offset and the net amount presented in the statement of net assets when, and only when, the Plan has a legal right to offset the amounts and it intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
The Plan considers its accrued liabilities to be a non-derivative financial liability.
- Derivative financial instruments:
Derivative financial instruments are recognized initially at fair value and attributable transaction costs are recognized in the statement of changes in net assets available for benefits as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and all changes are recognized immediately in the statement of changes in net assets available for benefits.
- Non-derivative financial assets (continued):
- (d) Fair value measurement:
Fair value is the amount for which an asset could be exchanged, or a liability settled. between knowledgeable, willing parties in an arm's length transaction on the measurement date.