Air Canada 2013 Annual Report Download - page 102

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2013 Air Canada Annual Report
102
IFRS 11 – Joint Arrangements
IFRS 11 requires a venturer to classify its interest in a joint arrangement as a joint venture or joint operation. Joint ventures
will be accounted for using the equity method of accounting whereas for a joint operation the venturer will recognize its share
of the assets, liabilities, revenue and expenses of the joint operation. Under previous IFRS, entities had the choice to
proportionately consolidate or equity account for interests in joint ventures. IFRS 11 supersedes IAS 31, Interests in Joint
Ventures, and SIC-13, Jointly Controlled Entities-Non-monetary Contributions by Venturers. There was no impact to the
Corporation’s financial statements upon adoption of this standard.
IFRS 12 – Disclosure of Interests in Other Entities
IFRS 12 establishes disclosure requirements for interests in other entities, such as joint arrangements, associates, special
purpose vehicles and off balance sheet vehicles. The standard carries forward existing disclosures and also introduces
significant additional disclosure requirements that address the nature of, and risks associated with, an entity’s interests in
other entities which have been included by the Corporation within the 2013 notes to the consolidated financial statements.
Amendments to IAS 1 – Financial Statement Presentation
The amendments to IAS 1 require entities to separate items presented in OCI into two groups, based on whether or not they
may be recycled to profit or loss in the future. Items that will not be recycled such as remeasurements related to IAS 19 will
be presented separately from items that may be recycled in the future, such as deferred gains and losses on cash flow hedges.
Entities that choose to present OCI items before tax will be required to show the amount of tax related to the two groups
separately.
The Corporation has adopted the amendments to IAS 1 effective January 1, 2013. These changes did not result in any
adjustments as the components of OCI for 2013 and the comparative period only includes items relating to remeasurements
on post-employment benefit plans which are not reclassified to net income.
Amendments to Other Standards
In addition, there have been amendments to other standards, including IFRS 7 Financial Instruments: Disclosure, IAS 27,
Separate Financial Statements, and IAS 28, Investments in Associates and Joint Ventures. IFRS 7 amendments require
disclosure about the effects of offsetting financial assets and financial liabilities and related arrangements on an entity’s
financial position. IAS 27 addresses accounting for subsidiaries, jointly controlled entities and associates in non-consolidated
financial statements. IAS 28 has been amended to include joint ventures in its scope and to address the changes in IFRS 10 –
13. The Corporation has adopted these amendments effective January 1, 2013 and added disclosures to address the
requirements within the 2013 notes to the consolidated financial statements.
FF) ACCOUNTING STANDARDS AND AMENDMENTS ISSUED BUT NOT YET ADOPTED
The following is an overview of accounting standard changes that the Corporation will be required to adopt in future years.
The Corporation does not expect to adopt any of these standards before their effective dates. The Corporation continues to
evaluate the impact of these standards on its consolidated financial statements.
IFRS 9 – Financial Instruments
IFRS 9 introduces new requirements for the classification and measurement of financial assets. IFRS 9 requires all recognized
financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and Measurement to be measured at
amortized cost or fair value in subsequent accounting periods following initial recognition. Specifically, financial assets that
are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash
flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost
at the end of subsequent accounting periods. All other financial assets including equity investments are measured at their fair
values at the end of subsequent accounting periods.
Requirements for classification and measurement of financial liabilities were added in October 2010 and they largely carried
forward existing requirements in IAS 39, Financial Instruments – Recognition and Measurement, except that fair value changes
due to credit risk for liabilities designated at fair value through profit and loss would generally be recorded in other
comprehensive income.