Air Canada 2011 Annual Report Download - page 82

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2011 Air Canada Annual Report
82
2. BASIS OF PREPARATION AND ADOPTION OF IFRS
The Corporation prepares its financial statements in accordance with Canadian generally accepted accounting principles
(“GAAP”) as defined in the Handbook of the Canadian Institute of Chartered Accountants – Part 1 (“CICA Handbook”). In 2010,
the CICA Handbook was revised to incorporate International Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board, and to require publicly accountable enterprises to apply IFRS effective for years
beginning on or after January 1, 2011. Accordingly, these are the Corporation’s first annual consolidated financial statements
prepared in accordance with IFRS. In these financial statements, the term “Canadian GAAP” refers to GAAP in Canada before
the adoption of IFRS and the term “GAAP” refers to generally accepted accounting principles in Canada after the adoption of
IFRS.
These financial statements have been prepared in accordance with GAAP. Subject to certain transition elections and
exceptions disclosed in Note 25, the Corporation has consistently applied the accounting policies used in the preparation of its
opening IFRS statement of financial position at January 1, 2010 throughout all periods presented, as if these policies had
always been in effect. Note 25 discloses the impact of the transition to IFRS on the Corporation’s reported statement of
financial position, statement of operations and cash flows, including the nature and effects of significant changes in
accounting policies from those used in the Corporation’s consolidated financial statements for the year ended December 31,
2010 prepared under Canadian GAAP.
These financial statements were approved by the Board of Directors of the Corporation for issue on February 9, 2012.