Q3 Financial Report - 2011

Ag Growth International Inc.
NOTES TO UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
[in thousands of Canadian dollars, except where otherwise noted and per share data]
September 30, 2011
Employee Benefits ["IAS 19"]
On June 16, 2011, the IASB revised IAS 19, Employee Benefits. The revisions include the
elimination of the option to defer the recognition of gains and losses, enhancing the guidance
around measurement of plan assets and defined benefit obligations, streamlining the presentation
of changes in assets and liabilities arising from defined benefit plans and introduction of enhanced
disclosures for defined benefit plans. The amendments are effective for annual periods beginning
on or after January 1, 2013. The Company is currently assessing the impact of the amendments on
its consolidated financial statements.
IFRS 10 Consolidated Financial Statements
IFRS 10 replaces the portion of IAS 27, Consolidated and Separate Financial Statements that
addresses the accounting for consolidated financial statements. It also includes the issues raised in
SIC-12, Consolidation - Special Purpose Entities. What remains in IAS 27 is limited to
accounting for subsidiaries, jointly controlled entities, and associates in separate financial
statements. IFRS 10 establishes a single control model that applies to all entities [including
'special purpose entities' or 'structured entity' as they are now referred to in the new standards, or
'variable interest entities' as they are referred to in US GAAP]. The changes introduced by IFRS
10 will require management to exercise significant judgment to determine which entities are
controlled, and therefore are required to be consolidated by a parent, compared with the
requirements that were in IAS 27. Under IFRS 10, an investor controls an investee when it is
exposed, or has rights, to variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the investee. This principle applies to all
investees, including structured entities.
IFRS 10 is effective for annual periods commencing on or after January 1, 2013. The Company is
currently in the process of evaluating the implications of this new standard, if any.
IFRS 11 Joint Arrangements
IFRS 11 replaces IAS 31, Interests in Joint Ventures and SIC-13, Jointly-controlled Entities -
Non-monetary Contributions by Venturers. IFRS 11 uses some of the terms that were used by
IAS 31, but with different meanings. Whereas IAS 31 identified three forms of joint ventures [i.e.,
jointly controlled operations, jointly controlled assets and jointly controlled entities], IFRS 11
addresses only two forms of joint arrangements [joint operations and joint ventures] where there is
joint control. IFRS 11 defines joint control as the contractually agreed sharing of control of an
arrangement which exists only when the decisions about the relevant activities require the
unanimous consent of the parties sharing control.
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