A Restricted Share Unit ("RSUs") incentive plan has been established for officers and other eligible employees. Under this plan, notional RSUs are granted and vest annually over a two-year term or immediately upon termination of employment by a participant. Upon vesting, RSUs are automatically paid out in Shares purchased on the open market in a number equal to the number of RSUs held. The fair value of the RSUs is accrued in accrued liabilities and charged to earnings as a selling, general and administrative expense upon grant. This estimated value is adjusted each period based on the period-end trading price of the Corporation's Shares with the resulting gains or losses included in earnings. Dividend equivalent grants, if any, are charged to earnings in the period the dividend is paid.
n) Financial instruments
Classification
All financial instruments are classified into one of five categories and are initially recognized at fair value and subsequently measured as noted in the table below.
----------------------------------------------------------------------------Category Subsequent Measurement----------------------------------------------------------------------------Financial assets at fair value Fair value and changes in fair value arethrough profit and loss recognized in net earnings("FVTPL")Held-to-maturity investments Amortized cost, using the effective interest methodLoans and receivables Amortized cost, using the effective interest methodAvailable-for-sale financial Fair value and changes in fair value areassets ("AFS") recorded in other comprehensive income until the instrument is derecognized or impairedFinancial liabilities Amortized cost, using the effective interest method----------------------------------------------------------------------------Cash and accounts and other receivables are classified as loans and receivables. Senior secured debt, senior unsecured debentures, bank indebtedness, accounts payable and accrued liabilities, dividends payable and other liabilities are classified as financial liabilities.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.
----------------------------------------------------------------------------Category Impairment methodology Indicators of Impairment----------------------------------------------------------------------------Available for Cumulative gains or losses Significant or prolongedsale equity previously recognized on other decline in the fair value ofinvestments comprehensive income are the security below its cost reclassified to profit or loss in the period----------------------------------------------------------------------------Financial Difference between the asset's The following indicators applyassets carried carrying amount and the to the remaining threeat amortized present value of estimated categories:cost future cash flows, discounted - Significant financial at the financial asset's difficulty of the issuer or original effective interest counterparty rate - Breach of contract, such as default or delinquency in interest of principal payments - It becomes probable that the borrower will enter bankruptcy or financial reorganization - Disappearance of an active market for that asset because of financial difficulties----------------------------------------------Financial Difference between the asset'sassets that carrying amount and theare carried at present value of estimatedcost future cash flows, discounted at the financial asset's original effective interest rate----------------------------------------------Other Carrying amount of thefinancial financial asset is reduced byassets the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account----------------------------------------------------------------------------
