Air Canada 2011 Annual Report Download - page 143

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2011 Consolidated Financial Statements and Notes
143
There is Canadian GAAP guidance related to the limit on the carrying amount of an accrued benefit asset and recognition of a
related valuation allowance. However, IFRS and Canadian GAAP have different methods of calculating the defined benefit
asset limit. Furthermore, Canadian GAAP did not address accounting for an additional liability due to minimum funding
requirements.
Impact
The impact arising from the change is summarized as follows:
Consolidated Statement of Financial Position
– At January 1, 2010, this adjustment increased Pension and other benefit liabilities by $2,777 with a corresponding
charge to the Deficit.
Pension Benefits Other Employee
Future Benefits Total
Net benefit obligation – Canadian GAAP $120 $ 1,109 $1,229
Recognize all cumulative actuarial gains and losses on transition 1,098 (258) 840
Additional minimum funding liability under IFRIC 14 1,937 – 1,937
Net benefit obligation – IFRS $3,155 $ 851 $4,006
Current portion – (66) (66)
Pension and other benefit liabilities – long-term $3,155 $ 785 $3,940
Consolidated Statement of Operations
– Wages, salaries and benefits expense under Canadian GAAP for the year ended December 31, 2010 increased by $28.
– Net financing expense on employee benefits related to the expected return on plan assets and interest arising on
defined benefit obligations of $75 for the year ended December 31, 2010 has been recognized under IFRS.
Consolidated Statement of Comprehensive Income (Loss)
– Net gains of $580 for the year ended December 31, 2010 have been recognized in Other comprehensive income under
IFRS.
iii) Property and Equipment
Optional exemption applied
The Corporation has elected to measure owned and finance leased aircraft and engines at January 1, 2010 at fair value and
use that fair value as deemed cost at that date. The aggregate deemed cost of aircraft and engines based on fair value as
recorded on transition at January 1, 2010 amounted to $5,023, which included a decrease to carrying amounts as reported
under previous Canadian GAAP of $301 as described below.