14. Transition to New Accounting Standards
Effective January 1, 2013, the Company adopted IFRS 11, Joint Arrangements, and as a result has reclassified its 50% interest in Canfor-LP OSB from a jointly controlled entity to a joint venture. The Company's interest in Canfor-LP OSB were previously accounted for using the proportionate consolidation method accounting and now are being accounted for using the equity method of accounting. The comparative period financial statements have been restated for adoption of IFRS 11 with impacts to the financial statements outlined in the tables below.
Also effective January 1, 2013, the Company adopted amended IAS 19, Employee Benefits, which amends certain requirements for defined benefit plans and termination benefits. Under the revised Standard, expected returns on plan assets are no longer included in post-employment benefits expense. Instead, post-employment benefits expense includes net interest on the defined benefit liability calculated using a discount rate. Remeasurements consisting of actuarial gains and losses and the actual return on plan assets (excluding the net interest component) are recognized in other comprehensive income. Further, the deferral of past service costs is no longer permitted and these are recognized in net income when incurred. Any deferred past service cost at January 1, 2013 is recognized through retained earnings on the opening balance sheet. The comparative period financial statements have been restated for adoption of revised IAS 19 with impacts to the financial statements outlined in the tables below.
Summarized impact on the opening condensed consolidated balance sheets:
As at January 1, 2012 Adjustments Before for Accounting(millions of Canadian Accounting Policy Changes Restateddollars, unaudited) Changes IFRS 11 IAS 19 Results--------------------------------------------------------------------------Current assets $ 568.4 $ (0.7) $ - $ 567.7Long-term assets(1) 1,833.2 2.2 - 1,835.4--------------------------------------------------------------------------Total assets $ 2,401.6 $ 1.5 $ - $ 2,403.1--------------------------------------------------------------------------Current liabilities $ 373.0 $ 1.5 $ - $ 374.5Long-term liabilities 668.5 - (0.1) 668.4--------------------------------------------------------------------------Total liabilities $ 1,041.5 $ 1.5 $ (0.1) $ 1,042.9--------------------------------------------------------------------------Equity attributable to equity holders of the Company $ 1,127.3 $ - $ 0.1 $ 1,127.4Non-controlling interests 232.8 - - 232.8--------------------------------------------------------------------------Total equity $ 1,360.1 $ - $ 0.1 $ 1,360.2--------------------------------------------------------------------------Total liabilities and equity $ 2,401.6 $ 1.5 $ - $ 2,403.1----------------------------------------------------------------------------------------------------------------------------------------------------(1 ) At January 1, 2012, $79.5 million was reclassified from property, plantand equipment to investment in joint venture as a result of the adoption ofIFRS 11. The reclassification was within long-term assets and had no impacton the line items disclosed above.
