Air Canada 2007 Annual Report Download - page 62

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2007 Air Canada Annual Report
62
Impact upon Adoption
In accordance with the transitional provisions of the standards, prior periods have not been restated for the adoption of
these new accounting standards.
The transition adjustments attributable to the re-measurement of fi nancial assets and fi nancial liabilities at fair value,
other than fi nancial assets classifi ed as available-for-sale and hedging instruments designated as cash fl ow hedges, were
recognized in the opening defi cit of the Corporation as at January 1, 2007. The cumulative effective portion of any gain or
loss on the hedging instruments classifi ed as cash fl ow hedges was recognized in AOCI, while the cumulative ineffective
portion was included in the opening defi cit of the Corporation as at January 1, 2007.
Upon adoption, the Corporation recorded the following adjustments to the consolidated statement of fi nancial position:
($ millions)
Increase /
(decrease)
Deferred charges $ (14 )
Future income taxes ($6 million, net of a valuation allowance of $6 million) $ -
Accounts payable and accrued liabilities $ 18
Long-term debt and capital leases $ (14 )
Defi cit, net of nil tax $ (8 )
Accumulated other comprehensive income (loss), net of nil tax $ (26 )