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:
- Foreign currency: Transactions in foreign currencies are translated into Canadian dollars at the exchange rate at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated into Canadian dollars at the exchange rate at that date.
Foreign currency differences arising on retranslation are recognized in the statement of changes in net assets available for benefits as investment income.
- Income recognition: Investment income is recorded on an accrual basis and includes interest income, dividends and changes in fair value including net realized gains (losses) on sale of investments.
- Financial assets and financial liabilities:
- Non-derivative financial assets:
Financial assets are recognized initially on the trade date, which is the date that the Plan becomes a party to the contractual provisions of the instrument. Upon initial recognition, attributable transaction costs are recognized in the statement of changes in net assets available for benefits as incurred.
The Plan measures all of its investments at fair value through the statement of changes in net assets available for benefits.
All other non-derivative financial assets including contributions receivable are measured at amortized cost.
The Plan derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred or in which the Plan neither transfers nor retains substantially all the risks and rewards of ownership and does not retain control of the financial asset.
- Non-derivative financial assets: