Air Canada 2007 Annual Report Download - page 95

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Consolidated Financial Statements and Notes
95
Section 1535 establishes disclosure requirements about an entity’s capital and how it is managed. The purpose will be to
enable users of the fi nancial statements to evaluate the entity’s objectives, policies and processes for managing capital.
Sections 3862 and 3863 will replace section 3861, Financial Instruments – Disclosure and Presentation, revising and
enhancing its disclosure requirements, and carrying forward unchanged its presentation requirements. These new sections
will place increased emphasis on disclosures about the nature and extent of risks arising from fi nancial instruments and
how the entity manages those risks.
Inventories
The CICA issued section 3031, Inventories, which will replace section 3030, Inventories. This new standard is effective for
fi scal years beginning on or after July 1, 2007, and the Corporation will adopt this section on January 1, 2008. Section 3031
provides more extensive guidance on measurement, and expands disclosure requirements to increase transparency. The
Corporation’s accounting policy for inventories is consistent with measurement requirements in the new standard and
therefore it is not anticipated that the results of the Corporation will be impacted; however, additional disclosures will be
required in relation to inventories carried at net realizable value, the amount of inventories recognized as an expense, and
the amount of any write downs of inventories.
CC) COMPARATIVES
Certain comparative fi gures have been reclassifi ed to conform to the fi nancial statement presentation adopted in the
current year.