annual-report-2016-2017

NIAGARA COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to Consolidated Financial Statements (continued)
Year ended March 31, 2017
1. Significant accounting policies and disclosure (continued):
(f) Capital assets (continued):
Construction in progress costs are capitalized as work progresses and amortization
commences as work is substantially completed.
(g) Retirement and post-employment benefits and compensated absences:
The College provides defined retirement and post-employment benefits and compensated
absences to certain employee groups. These benefits include pension, health and dental,
vesting sick leave, non-vesting sick leave and compensated absences. The College has
adopted the following policies with respect to accounting for these employee benefits:
(i)
(ii)
(iii)
(iv)
(v)
The costs of post-employment future benefits are actuarially determined using
management's best estimate of health care costs, disability recovery rates and
discount rates. Adjustments to these costs arising from changes in estimates and
experience gains and losses are amortized to income over the estimated average
remaining service life of the employee groups on a straight-line basis.
The costs of the multi-employer defined benefit pension are the employer's
contributions due to the plan in the period.
The cost of vesting and non-vesting sick leave benefits are actuarially determined
using management's best estimate of salary escalation, employees' use of entitlement
and discount rates. Adjustments to these costs arising from changes in actuarial
assumption and/or experience are recognized over the estimated average remaining
service lives of the employees.
The discount used in the determination of the above-mentioned liabilities is equal to
the College's internal rate of borrowing.
The cost of compensated absences is determined using management's best estimate
of the length of the compensated absences.
(h) Student organizations:
These consolidated financial statements do not reflect the assets, liabilities and results of
operations of the Niagara College Student Administrative Council.
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