2012 Financial Statements - Workers' Compensation Board

Financial statement presentation
WCB presents its statement of financial position in order of liquidity. The statement of comprehensive
income reports operating results arising from WCB’s primary activities: core business operations including
risk underwriting, premium assessment and collection, benefit processing, injury treatment and vocational
rehabilitation, and financial management including investment portfolio management and claim benefit
liability valuation. Administration expense is presented in the statement of comprehensive income by
function. Other comprehensive loss primarily consists of net changes in remeasurement of post-employment
defined benefit plan liabilities.
In addition to performance reporting, the statement of comprehensive income also reports funding actions
arising from the application of Funding Policy. Such actions include appropriations of excess surplus for
distribution back to employers, or collection of special levies required to replenish funding deficits, as
prescribed by Funding Policy established by the Board of Directors.
Cash equivalents
Cash equivalents include short-term, liquid investments that are readily convertible to known amounts of
cash and are subject to an insignificant risk of change in value. Cash and short-term investments held by
custodians are not available for general use, and accordingly are included in investments.
Finance expense
Finance expense comprises primarily recognition of interest (i.e., time value of money) inherent in discounted
liabilities. Significant discounted liabilities include claim benefit liabilities, employee benefit plans and lease
obligations.
Comparative figures
Certain comparative figures have been restated and/or reclassified where required to conform to the current
year’s accounting treatment.
Specific accounting policies
To facilitate a better understanding of WCB’s financial statements, specific accounting policies are disclosed
in the related notes to these financial statements:
Note Topic Page
5
7
8
9
10
11
13
16
Investments
Property, plant and equipment
Intangible assets
Lease and other commitments
Employee benefits
Claim benefit liabilities
Premium revenue
Investment income and expense
52
58
60
61
62
65
69
72
2012 FINANCIAL STATEMENTS and notes 49