42 ANNUAL REPORT 2012 may be impaired Corporate assets where material to the carrying value of a CGU in computing impairment calculations are allocated to CGUs based on the benefts received by the CGU If the carrying amount of an individual asset or CGU exceeds its recoverable amount an impairment loss is recorded in proft or loss to refect the asset at the lower amount In assessing the value inuse the relevant future cash fows expected to arise from the continuing use of such assets and from their disposal are discounted to their present value using a market determined pretax discount rate which refects current market assessments of the time value of money and assetspecifc risks Fair value less costs to sell is determined as the amount that would be obtained from the sale of the asset in an armslength transaction between knowledgeable and willing parties Similarly a reversal of a previously recognized impairment loss is recorded in proft or loss when events or circumstances indicate that the estimates used to determine the recoverable amount have changed since the prior impairment loss was recognized and the recoverable amount of the asset exceeds its carrying amount The carrying amount is increased to the recoverable amount but not beyond the carrying amount net of amortization which would have arisen if the prior impairment loss had not been recognized After such a reversal the amortization charge is adjusted in future periods to allocate the assets revised carrying amount less any residual value on a systematic basis over its remaining useful life Goodwill impairments are not reversed 413 JOINT VENTURES A joint venture is a contractual arrangement whereby two or more parties the venturers undertake an economic activity that is subject to joint control Joint control is defned as the contractually agreed sharing of control of an economic activity and exists when the strategic fnancial and operating decisions relating to the activity require the unanimous consent of the parties sharing control Joint ventures fall into three categories jointly controlled entities jointly controlled operations and jointly controlled assets A jointly controlled entity involves the establishment of a separate entity such as a corporation or partnership Jointly controlled entities are accounted for under IAS 31 Interest in Joint Ventures using either proportionate consolidation or equity accounting Where the Companys activities are conducted through joint ventures the Company accounts for these investments using the proportionate consolidation method whereby the Company recognizes on its consolidated balance sheets its share of the assets and liabilities of joint ventures and includes its share of the revenue and expenses of these joint ventures in proft or loss Jointly controlled operations and jointly controlled assets do not involve the creation of an entity that is separate from the venturers themselves In a joint operation each venturer uses its own resources and carries out its own part of a joint operation separately from the activities of the other venturers Each venturer owns and controls its own resources that it uses in the joint operation Jointly controlled assets involve the joint ownership of one or more assets Where an entity has an interest in jointly controlled operations or jointly controlled assets it accounts for its share of the assets liabilities revenue and expenses and cash fows under the arrangement Transactions with joint ventures Where the Company contributes or sells assets to a joint venture the Company recognizes only that portion of the gain or loss that is attributable to the interests of the other venturers Where the Company purchases assets from a joint venture the Company does not recognize its share of the proft or loss of the joint venture from the transaction until it resells the assets to an independent party The Company adjusts joint venture fnancial statement amounts if required to refect consistent accounting policies 414 ASSOCIATES Entities in which the Company has signifcant infuence and which are neither subsidiaries nor joint ventures are accounted for using the equity method of accounting Under the equity method of accounting the Companys investments in associates are carried at cost and adjusted for postacquisition changes in the net assets of the investment Proft or loss refects the Companys share of the results of these investments The consolidated statements of comprehensive income include the Companys share of any amounts recognized by associates in other comprehensive income Where there has been a change recognized directly in the equity of the associate the Company recognizes its share of that change in equity The fnancial statements of the associates are generally prepared for the same reporting period as the Company using consistent accounting policies Adjustments are made to bring into line any dissimilar accounting policies that may exist in the underlying records of the associate Adjustments are made in the consolidated fnancial statements to eliminate the Companys share of unrealized gains and losses on transactions between the Company and its associates The Company discontinues the use of the equity method from the date on which it ceases to have signifcant infuence and from that date accounts for the investment in accordance with IAS 39 Financial Instruments Recognition and Measurement its initial costs are the carrying amount of the associate on that date provided the investment does not then qualify as a subsidiary or joint venture 415 PROVISIONS General Provisions are recognized when the Company has a present obligation legal or constructive as a result of a past event it is probable that an outfow of resources embodying economic benefts will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation Where the Company expects some or all of the provision to be reimbursed the reimbursement is recognized as a separate asset when reimbursement is virtually certain The expense relating to any provision is presented in proft or loss net of any reimbursement Where material provisions are discounted using a current pretax discount rate that refects where appropriate the risks specifc to the liability Where discounting is used the increase in the provision due to the passage of time is recognized as a fnance cost NOTES TO CONSOLIDA TED FINANCIAL ST A TEMENTS DECEMBER 31 2012 AND 2011 IN THOUSANDS OF CANADIAN DOLLARS EXCEPT PER SHARE AMOUNTS