Annual Report 2011 - Canlan Ice Sports

Notes to Consolidated Financial Statements
(tabular amounts expressed in thousands of dollars, except per share amounts)
Years ended December 31, 2011 and 2010
22. First-time adoption of IFRS (continued):
Notes to the IFRS reconciliations above (continued):
(g) Deferred tax:
The above adjustments resulted in changes to temporary differences between accounting and tax values of assets and liabilities. As a result,
adjustments to deferred tax assets and liabilities were made at each of the reporting periods presented in the reconciliations. In addition,
under Canadian GAAP, deferred tax assets and liabilities are classified as current or non-current as appropriate, whereas IFRS prescribes that all
deferred tax is classified as non-current in the statement of financial position. Therefore, a reclassification of deferred tax assets from current
to non-current has been recorded.
(h) Classification of debt:
As at December 31, 2010, the Company had debt on ice rinks of $17,371,000 maturing within 12 months of the reporting date. Subsequently,
on March 22, 2011, the Company entered into an agreement to refinance the debt on a long-term basis and accordingly, under Canadian GAAP
$16,134,000 of this debt was classified as a non-current liability as the debt renewal agreement was completed prior to the issuance date of the
consolidated financial statements. Under IFRS classification of debt held at the end of the reporting period must reflect the terms and conditions
that existed as at that date and therefore, the subsequent refinancing of the Company’s debt on a long-term basis cannot be considered. As a
result, $16,134,000 of this debt has been reclassified to current liabilities under IFRS as at December 31, 2010.
(i) Presentation of finance income and expense:
Under Canadian GAAP, interest income earned on cash and cash equivalents was presented as part of revenue and interest expense on debt and
finance leases was presented as part of other expenses (income). In addition, fair value changes associated with the Company’s held for trading
financial liabilities was also included as part of other expenses (income). Under IFRS, finance income and expense is presented separately in the
statement of earnings and comprehensive income, and accordingly, certain presentational reclassifications were recorded on transition.
60 Canlan Ice Sports Corp. 2011 Annual Report