Download PDF (619 ko )FSST and CSST Financial Statements 2007

FSST Financial Statements
i) Actuarial liability
The liability includes the current estimated value of all future payments to be made regarding
work-related injuries and preventive withdrawals of pregnant or breast-feeding workers that occurred
during the current year and during previous years, among all employers subject to assessment.
This liability includes provisions for pending benefit claims and for compensation of victims of
industrial accidents whose claims will reach the CSST after the end of the current year. It also
includes provisions for compensation of victims of work-related injuries who are now being compensated
and those who may be compensated following a relapse, a recurrence or an aggravation.
This liability includes a provision for future administrative expenses as well as for future contributions
to the financing of administrative tribunals regarding events that occurred at the end of
the year.
The economic assumptions are established using a real long-term rate of return of 4.0%.
j) Cash and cash equivalents
The FSST’s policy is to present bank balances in cash and cash equivalents, including bank
overdrafts whose balances often fluctuate between overdraft and cash on hand and the line of
credit used to cover monthly cash deficits.
k) Future accounting policy changes
During the next fiscal year, the FSST will apply the new recommendations of the Canadian Institute
of Chartered Accountants (CICA) with respect to the following sections:
3862 – Financial Instruments – Disclosure
3863 – Financial Instruments – Presentation
The aim of these sections is to provide users with information that allows them to assess the
significance of financial instruments for the entity’s financial position and performance. They also
allow users to assess the nature and extent of risks arising from financial instruments to which
the entity is exposed and the way it manages these risks. These sections replace CICA Handbook
Section 3861, Financial Instruments – Disclosure and Presentation. Disclosure requirements are
revised and enhanced, while presentation requirements remain essentially unchanged.
The CICA has also issued Handbook Section 3064 – Goodwill and Intangible Assets to replace
Section 3062 – Goodwill and Other Intangible Assets and Section 3450 – Research and Development
Costs. This new section establishes standards for the recognition, measurement and disclosure of
goodwill and intangible assets, including internally generated intangible assets, and will be effective
for financial statements commencing October 1, 2008.
Sections 3862 and 3863 specifically target disclosure and will have no impact on the FSST’s
income. As for Section 3064, which will apply for fiscal 2009, management will assess the impact
of its application during fiscal 2008.
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