Cogeco 2015 Annual Report Download - page 71

70 COGECO CABLE INC. 2015 Consolidated financial statements
the subordinate voting shares on the TSX for the twenty consecutive trading days immediately preceding by one day the closing date
of the reporting period. Any changes in the fair value of the liability are recognized in profit or loss.
K) EMPLOYEE BENEFITS
Short-term employee benefits
Short-term employee benefits include wages, salaries, compensated absences, profit-sharing and bonuses. They are measured on
an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid
under short-term cash bonus or profit sharing plans if the Corporation has a present legal or constructive obligation to pay this amount
as a result of past service provided by the employee and the obligation can be estimated reliably.
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions and will have no legal or
constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognized as an expense
in the periods during which services are rendered by employees.
Defined benefit plans
On each annual reporting date, independent actuaries extrapolate the data of the most recent full actuarial valuation to measure, for
accounting purposes, the present value of the defined benefit obligation. The Corporation's net defined benefit liability in respect of
defined benefit plans is calculated separately for each plan.
The present values of the defined benefit obligation, the current service cost and, if applicable, the past service cost are actuarially
determined using the projected unit credit method (sometimes known as the accrued benefit method pro-rated on service) based on
management's best-estimate assumptions on the discount rate, the expected rate of compensation increase and the mortality table.
Management determines the discount rate based on a review of the current market interest rates on investment-grade fixed-rate
corporates bonds, which are rates adjusted to reflect the duration of the expected future cash outflows of retirement benefit payments.
The net defined benefit liability or asset recognized in the consolidated statement of financial position corresponds to the fair value of
plan assets net of the present value of the defined benefit obligation. Any asset resulting from this calculation is limited to the present
value of the economic benefits available in the form of refunds from the plans or in the form of reductions in future contributions to the
plans.
The net defined benefit cost components of the defined benefit plans are recognized as follows:
Service cost is recognized in profit or loss;
Net interest on the net defined benefit liability or asset is recognized in profit or loss;
Remeasurements of the net defined benefit liability or asset are recognized in other comprehensive income.
The service cost recognized in profit or loss comprises:
Current service cost provided in exchange for employees services rendered during the period;
Past service cost recognized in profit or loss in the period in which the plan is amended; and
Gains or losses resulting from a settlement recognized in profit or loss in the period in which the plan settlement occurs.
Net interest on the net defined benefit liability or asset is calculated by multiplying the net defined benefit liability or asset by the discount
rate.
Remeasurements of the net defined benefit liability or asset are recognized immediately in retained earnings and they are not reclassified
to profit or loss in a subsequent period. Remeasurements of the net defined benefit liability or asset comprise:
Actuarial gains and losses arising from experience adjustments, changes in financial assumptions and changes in
demographic assumptions;
The return on plan assets, except amounts included in interest income; and
Any change in the effect of the asset ceiling, except amounts included in net interest on the net defined benefit liability or
asset.