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34 WestJet 2009 Annual Report
the beginning of the fi rst annual reporting period beginning on
or after January 1, 2011. Early adoption is permitted. We elected
to adopt Section 1601 and Section 1602 prospectively, effective
January 1, 2009. Adoption of these sections did not impact our
results of operations or fi nancial position.
Financial instruments
In May 2009, the CICA amended Section 3862, Financial
Instruments – Disclosures, to improve disclosure requirements
about fair value measurement for fi nancial instruments and
liquidity risk disclosures. These amendments require a three-
level hierarchy that refl ects the signifi cance of the inputs used
in making the fair value measurements. Fair values of assets
and liabilities included in level 1 are determined by reference to
quoted prices in active markets for identical assets and liabilities.
Assets and liabilities in level 2 include valuations using inputs
other than quoted prices for which all signifi cant outputs are
observable, either directly or indirectly. Level 3 valuations are
based on inputs that are unobservable and signifi cant to the
overall fair value measurement. Please refer to the consolidated
fi nancial statements and notes for the years ended December
31, 2009 and 2008, for further disclosure.
Business combinations
In January 2009, the CICA Accounting Standards Board (AcSB)
issued Section 1582, Business Combinations. Section 1582
replaces Section 1581, Business Combinations, and harmonizes
the Canadian standards with IFRS. Section 1582 establishes
principles and requirements of the acquisition method for
business combinations and related disclosures. This section is
effective January 1, 2011, and applies prospectively to business
combinations for which the acquisition date is on or after our fi rst
annual reporting period beginning on or after January 1, 2011.
Early adoption is permitted. We elected to adopt Section 1582
prospectively, effective January 1, 2009. Adoption of this section
did not impact our results of operations or fi nancial position.
Consolidated statements and non-controlling interests
In January 2009, the AcSB issued Sections 1601, Consolidated
Financial Statements, and Section 1602, Non-controlling
Interests, which together replace Section 1600, Consolidated
Financial Statements and harmonize the Canadian standards
with IFRS. Section 1601 establishes standards for the preparation
of consolidated fi nancial statements. Section 1602 provides
guidance on accounting for a non-controlling interest in a
subsidiary in consolidated fi nancial statements subsequent to
a business combination. These sections are effective on or after
December 31, 2008
($ in thousands) Reported Adjustment Restated
Prepaid expenses, deposits and other $ 67,693 $ (14,410) $ 53,283
Future income tax asset 4,196 4,263 8,459
Retained earnings 611,171 (10,147) 601,024
($ in thousands) 2008
Net earnings, reported $ 178,135
Adjustments:
Increase in sales and distribution (88)
Decrease in future income tax expense 459
Net earnings, restated $ 178,506
Basic earnings per share, reported $ 1.38
Diluted earnings per share, reported $ 1.37
Basic earnings per share, restated $ 1.39
Diluted earnings per share, restated $ 1.37