NOTES  TO CONSOLIDATED FINANCIAL STATEMENTS 9. EMPLOYEE FUTURE BENEFITS OBLIGATION Defined benefit costs have been presented under research and product development expenses in the consolidated statements of net (loss) income for the year. Management is required to make an estimate regarding the discount rate used to determine the accrued benefit obligation. This estimate is of a long-term nature, which is consistent with the nature of the employee future benefits. The discount rate used to determine the accrued benefit obligation as at December 31, 2012 was 4.19% (2011 – 4.19%). The Company has an unfunded, non-registered, non-indexed defined retirement benefit plan for an officer. The retirement benefit is two months’ salary for each year the employee is employed by the Company up to age 55. 44 CEAPRO Annual Report 2012 Year Ended Year Ended December 31 December 31 Accrued benefit obligation 2012 2011 $ $ Unfunded balance, beginning of year 187,302 160,187 Current service cost 21,606 19,983 Interest costs on accrued benefit obligation 8,311 7,132 217,219 187,302 Year Ended Year Ended December 31 December 31 Elements of defined benefit costs recognized in the year 2012 2011 $ $ Current service cost 21,606 19,983 Interest cost on accrued benefit obligation 8,311 7,132 29,917 27,115