Air Canada 2013 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2013 Air Canada annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

2013 Air Canada Annual Report
62
14. ACCOUNTING POLICIES
The following is an overview of accounting standard changes that Air Canada 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.
IFRS 9 was amended in November 2013, to (i) include guidance on hedge accounting, (ii) allow entities to early adopt the
requirement to recognize changes in fair value attributable to changes in an entity’s own credit risk, from financial liabilities
designated under the fair value option, in OCI, without having to adopt the remainder of IFRS 9, and (iii) remove the previous
mandatory effective date of January 1, 2015, although the standard is available for early adoption.
Amendments to IAS 32 – Financial Instruments: Presentation
IAS 32 addresses inconsistencies when applying the offsetting requirements, and is effective for annual periods beginning on
or after January 1, 2014.