APEX SUPPLEMENTARY PENSION PLAN

Notes to the Financial Statements

Year ended December 31, 2022

3. Significant accounting policies (continued):

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

(ii) Income recognition (continued):

Interest:

Interest income is recognized in the statement of changes in net assets available for benefits when earned.

Pooled investment income:

Income earned within the pooled investment funds is comprised of interest, dividends, realized and unrealized gains and losses from Canadian and foreign sources and is recognized in the statement of changes in net assets available for benefits when earned.

(iii) Transaction costs:

Brokers' commissions and other transaction costs are recognized in the statement of changes in net assets available for benefits when incurred.

(d) Financial assets and financial liabilities:

(i) Financial assets:

The Plan recognizes financial assets on the trade date, at which the Plan becomes a party to the contractual provisions on the financial asset contract.

The Plan derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset, the difference between the carrying amount of the asset and consideration received is recognized in the statement of changes in net assets available for benefits as investment income or loss.

(ii) Financial liabilities:

All financial liabilities are recognized initially on the date that the Plan becomes a party to the contractual provisions of the instrument.

The Plan derecognizes a financial liability when its contractual obligations are discharged, canceled or expire.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Plan has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

Financial liabilities are comprised of accounts payable and accrued liabilities. Such financial liabilities are recognized initially at fair value along with any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest rate method.

(e) Fair value measurement:

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction on the measurement date.