NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) • Derecognizes the assets (including goodwill) and liabilities of the subsidiary; • Derecognizes the carrying amount of any non-controlling interests; • Derecognizes the cumulative translation differences recorded in equity; • Recognizes the fair value of the consideration received; • Recognizes the fair value of any investment retained; • Recognizes any surplus or deficit in profit or loss; and • Reclassifies the parent’s share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as would  be required if the Company had directly disposed of the related assets or liabilities. Use of estimates and critical judgments The preparation of the Company’s financial statements requires management to make critical judgments, estimates and assumptions that  affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date.  On an ongoing basis, management evaluates its judgments, estimates and assumptions using historical experience and various other  factors it believes to be reasonable under the given circumstances. Actual outcomes may differ from these estimates under different  assumptions and conditions that could require a material adjustment to the reported carrying amounts in the future. The most significant estimates made by management include the following: At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment and intangible assets to  determine whether there is any indication that those assets are impaired. Individual assets are grouped together as a cash generating unit  (“CGU”) for impairment assessment purposes at the lowest level at which there are identifiable cash flows that are independent from other  Company assets. The Company’s CGUs and goodwill are tested for impairment annually and at other times when indicators of impairment  arise. The manner in which the Company identified its CGUs is disclosed in  note 5 . Impairment of non-financial assets When calculations to determine the recoverable amount of the CGU are undertaken, management must estimate the expected future cash  flows from the individual asset or CGU and choose a suitable discount rate in order to calculate the present value of those cash flows.  Further details, including a sensitivity analysis of key assumptions, are given in  note 5 . Share-based payments Future employee benefits Income Taxes HIGH LINER FOODS INCORPORATED 60 Income taxes in reporting periods are accrued, to the extent practicable, based on current taxes expected to be paid or recovered for the  year, and deferred taxes applicable in respect of the temporary differences that will reverse in subsequent periods. The tax rates and tax  laws used to compute the amounts are those that are enacted or substantively enacted at the reporting date in the countries where the  Company operates and generates taxable income. Estimation of income taxes includes evaluating the recoverability of deferred tax assets based on an assessment of the Company’s ability to  utilize the underlying future tax deductions against future taxable income before they expire. The Company’s assessment is based upon  existing tax laws and estimates of future taxable income. If the assessment of the Company’s ability to utilize the underlying future tax  deductions changes, the Company would be required to recognize more or fewer of the tax deductions as assets, which would decrease or  increase the income tax expense in the period in which this is determined. Determination of benefit expense requires assumptions such as the expected return on assets available to fund pension obligations, the  discount rate to measure obligations, the projected age of employees upon retirement, the expected rate of future compensation and the  expected mortality rate of pensioners. For the purpose of calculating the expected return on plan assets, the assets are valued at fair value.  Actual results will differ from results which are estimated based on assumptions. See  note 14  for certain assumptions made with respect to  future employee benefits. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of  high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity  approximating the terms of the related pension liability. The Company measures the cost of cash-settled transactions with employees initially at fair value at the grant date; the liability is re- measured at each balance sheet date with changes in fair value recognized in profit or loss. The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at  the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most  appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the  most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making  assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed  in  note 18 .