identifiable cash flows that are independent from other  Company assets. The Company’s CGUs including a goodwill  balance 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  and Note 26 (c)(i) of our consolidated financial statements.  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. 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. The cash flows are  derived from the budget for the next five years and do not  include restructuring activities that the Company is not yet  committed to or significant future investments that will  enhance the asset’s performance of the cash generating unit  being tested. Further details, including a sensitivity analysis  of key assumptions, are given in Note 5 and Note 26 (c)(i). 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.  Estimating fair value requires determining the most  appropriate valuation model, which is dependent on  the terms and conditions of the grant. This also requires  determining the most appropriate inputs to the valuation  model including assumptions on the expected life of the  option, volatility and dividend yield and making assumptions  about them. The assumptions and models used are disclosed  in Note 18 of the consolidated financial statements. 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.  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 of the consolidated  fianancial statements for certain assumptions made with  respect to employee future benefits. Income taxes in reporting periods are accrued, to the  extent practicable, based on current tax 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  42 HIGH LINER FOODS INCORPORATED The Company makes estimates to determine the costs  associated to the sale of product to be allocated to certain  of its variable sales and marketing expenses, including  volume rebates and other sales volume discounts, coupon  redemption costs and costs incurred related to damages. The  Company’s estimates include consideration of empirical data  and trends combined with future expectations of volume  sales, with estimates being reviewed on a monthly basis for  reasonability. Changes in assumptions about these factors  could affect the reported fair value of financial instruments.  Where the fair value of financial assets and financial  liabilities recorded in the statement of financial position  cannot be derived from active markets, their fair value  is determined using valuation techniques including the  discounted cash flow model. The inputs to these models are  taken from observable markets where possible, but where  this is not feasible, a degree of estimation is required in  establishing fair values. The estimates include considerations  of inputs such as liquidity risk, credit risk and volatility.  Changes in assumptions about these factors could affect the  reported fair value of financial instruments. 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. Significant judgment  is required in determining the global provision for taxation.  There are many transactions and calculations for which the  ultimate tax determination is uncertain during the ordinary  course of business. The Company maintains provisions for  uncertain tax positions that it believes appropriately reflect  its risk with respect to tax matters under active discussion,  audit, dispute or appeal with tax authorities, or which are  otherwise considered to involve uncertainty. These provisions  for uncertain tax positions are made using the best estimate  of the amount expected to be paid based on a qualitative  assessment of all relevant factors. The Company reviews the  adequacy of these provisions at each balance sheet date.  However, it is possible that at some future date an additional  liability could result from audits by taxing authorities. Where  the final tax outcome of these matters is different from  the amounts that were initially recorded, such differences  will affect the tax provisions in the period in which such  determination is made. FAIR VALuE OF FInAnCIAL InSTRuMEnTS SALES AnD MARkETInG ACCRuALS EMPLOyEE FuTuRE bEnEFITS  InCOME TAxES SHARE-bASED PAyMEnTS 