APEX SUPPLEMENTARY PENSION PLAN

Notes to the Financial Statements

Year ended December 31, 2022

2. Basis of presentation (continued):

(b) Basis of measurement:

The financial statements have been prepared on a historical cost basis except for investments, which are recorded at fair value through the statement of changes in net assets available for benefits.

(c) Functional presentation and currency:

These financial statements are presented in Canadian dollars, which is the Plan's functional currency.

(d) Use of estimates and judgments:

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities at the date of the statement of financial position and the reported amounts of changes in net assets available for benefits during the year. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future years affected.

While best estimates have been used in the valuation of the Plan's pension obligations, management considers that it is possible, based on existing knowledge, that changes in future conditions could require a material change in the recognized amounts.

Differences between actual results and expectations in the Plan's pension obligations are disclosed as changes in assumptions and net experience gains or losses in the statement of changes in pension obligations in the year when actual results are known.

3. Significant accounting policies:

(a) Cash: Cash is comprised of cash on hand.

(b) Foreign currency:

Transactions in foreign currencies are translated into Canadian dollars at the exchange rate on the transaction dates. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into Canadian dollars at the exchange rate at that date.

(c) Investment transactions, income recognition and transaction costs:

(i) Investment transactions: Investment transactions are accounted for on a trade date basis.

(ii) Income recognition:

Investment income is recorded on an accrual basis and includes interest income and pooled investment income.