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Bringing clarity to an IFRS worldIFRS quarterly technical updateMarch 27, 2013

Agenda• Q1 considerations• Disclosure principles to consider when adopting new standards• Key reminders for Q1:– IFRS 10 Consolidated Financial Statements– IFRS 11 Joint Arrangements– IFRS 13 Fair Value Measurement– IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine– IAS 19 (2011) Employee Benefits• IASB and IFRS Interpretations Committee (IFRIC) Update1 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 considerations oninitial adoption of newIFRS standards2 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

New IFRS standards impacting Q1• Effective for annual periods beginning on or after January 1, 2013:IFRS 7 Financial Instruments: Disclosures –amendmentsIFRS 10 Consolidated Financial StatementsIFRS 11 Joint ArrangementsIFRS 12 Disclosure of Interests in Other EntitiesIFRS 13 Fair Value MeasurementIAS 1 Presentation of Financial Statements –amendments**IAS 19 (2011) Employee BenefitsIAS 28 Investments in AssociatesIFRIC 20 Stripping Costs in the Production Phase ofa Surface MineAre youprepared?** effective for annual periods beginning on or after July 1, 20123 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Changes to IAS 1 impacting presentation of OCI• OCI balances now have to be grouped into two groups:– those which may be recycled into profit and loss (e.g. cash flow hedges, AFS securities,CTA); and– those which will not be recycled into profit or loss (e.g. IAS 19re-measurements, IAS 16 revaluation gains)• If these amounts are presented gross and the tax effects are separatelydisclosed, the tax impacts have to also be similarly grouped into the twocategories.• See example on next slide4 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Sample presentation of OCI as required by amendmentsto IAS 1Current year Prior year$'000's $'000'sProfits for the period 143,480 115,600Other comprehensive incomeItems that will not be reclassified to profit or lossActuarial gains/(losses) on defined benefit plans 10,000 (20,000)Income tax relating to items not reclassified (3,200) 6,400Total items that will not be reclassified to profit or loss 6,800 (13,600)Items that may be reclassified subsquently to profit or loss:Cash flow hedges- Gains/(losses) arising during the period 12,000 (16,000)- Reclassification adjustments for amounts recognised in profit or loss (2,000) 2,500Income tax relating to items that may be reclassified (3,200) 4,320Total items that may be reclassified subsequently to profit or loss 6,800 (9,180)Other comprehensive income/(loss) for the period 13,600 (22,780)Total comprehensive income for the period 157,080 92,8205 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Additional new disclosures required under IFRS 7• New disclosures are required about rights of offset and related arrangements• Transactions impacted include collateral posting requirements and all masternetting arrangements whether or not the criteria for balance sheet offset aremet.• Separate disclosure for financial assets and financial liabilities is required –generally in tabular format• Key disclosures include:a) Gross amounts subject to agreementsb) Amounts shown net in balance sheetc) Net Subtotal of (a) minus (b)d) Amounts subject to offset or master netting agreements not presented nete) Net subtotal of (c) minus (d)Alert: There is some uncertainty about the specific interim f/s which require thesedisclosures based on the March 2013 IFRIC discussions. Consultation with your auditoris recommended.6 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Specific new disclosures required by IFRS 7• Assume an entity has the following financial assets and financial liabilities:– Derivative assets and derivative liabilities that are subject to a master nettingarrangement by counterparty in the event of default. No balance sheet offsetting.Counterparty A Counterparty B TotalDerivative assets $400,000 $250,000 $650,000Derivative liabilities ($800,000) ($350,000) ($1,150,000)Cash collateral ondeposit- $100,000 $100,000Financial AssetsFinancialLiabilities(a) Gross amounts subject to agreements $ 650,000 $1,150,000(b) Amounts shown net in balance sheet - –(c) Net Subtotal of (a) minus (b) 650,000 1,150,000(d) Amounts subject to master netting agreementsbut not presented netSubject to AgreementsCash collateral(650,000) (650,000)(100,000)(e) Net subtotal of (c) minus (d) $ – $ 400,0007 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Specific new disclosures required by IFRS 7 (cont.)• Agreements to look out for include (but are not limited to):– Derivative agreements such as ISDA agreements– Securities lending and borrowing– Repurchase and reverse repurchase agreements– Margin account agreements– Collateral received and pledged8 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

General disclosureprinciples to considerwhen new standardsare adopted9 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

General disclosure principles to consider when newstandards are adoptedIAS 8 – guidance on disclosures for the initial application of IFRS– the most significant are IAS 8.28(f) – (h)• Amount of adjustment for each line item affected• Amount of adjustment on basic and diluted earnings per share• Amount of adjustment relating to periods before those presentedIAS 34 – general requirements to provide disclosure of significant transactions andevents– refer to IAS 34.15C and IAS 34.16A (a) and (i)• If event or transaction is significant to understanding the changes in financial positionor performance since the last annual reporting period, provide explanation of and anupdate to the relevant information• Describe the nature and effect of changes in accounting policies or methods• Disclose effect of changes in the composition of the entity10 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Interim disclosure considerationsNew or amended accounting policiesNew critical accounting judgments and estimation uncertaintyChange in disclosure of balances relating to adoption of new or amendedstandards (e.g. Goodwill recognized for newly consolidated sub)Update notes to reflect changes in accounting policiesNew commitments, contingencies, risks, and uncertainties11 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

When to include a third balance sheet• Required in condensed or complete interim financial statements at the start ofthe earliest comparative period under Part 4.3(2)d of National Instrument 51-102 Continuous Disclosure Obligations if, during the period:– Reclassification of a financial statement item– Adoption a new accounting standard; or– Change an accounting policy• A third balance sheet is a securities requirement and not an option whenchanges triggering consideration for a third balance sheet are material.Recommendation: include the third balance sheet when the criteriaunder NI 51-102 are met*IAS 1 only addresses annual financial statements12 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

When to include a third balance sheet (cont.)Facts:• Entity A previously accounted for a significant joint arrangement using the equity method. Upon adoptionof IFRS 11, the entity concluded that the arrangement met the definition of a joint venture and is stillaccounted for using the equity method. There was no other impact from any other new standards.• Entity B has the same facts as entity A, except it was concluded that the arrangement was a jointoperation under IFRS 11 so the basis of accounting was changed upon adoption of IFRS 11• Which entity would be more likely to include a third balance sheet?Example of items to consider: Entity A Entity BJoint VentureJoint OperationAre adjustments quantitatively material? No It dependsAre adjustments qualitatively material? No It dependsAdjustment to any line items on the statement offinancial position?Is there an impact on covenants or keyperformance indicatorsNoNoYesIt depends, but likely.Will there be an impact on subtotals? No YesAre adjustments pervasive? Do they impact manyline items on the statement of financial position?NoIt depends, but likely.Other It depends It depends13 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IFRS 10Consolidated FinancialStatements14 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

The control model – SummaryControl =PowerExposure/ right+ to variable +returnsAbility to usepower to affectamount of returns= Substantive rightsthat give investorcurrent ability todirect “relevantactivities” 1 .= Returns that varywith investeeperformance (only +,only -, or both). Nothreshold onvariability.Requires analysis of:• Investor as principalvs. agent• Delegated authorityRights include: Voting rights Potential votingrights Contractual rights Protective rightsReturns include: Dividends Changes in valueof investment Synergisticbenefits1) “Relevant activities” are those that significantly affect the returns of the investee.15 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Quick Hits: What you need to know about IFRS 10…• Areas of complexity:− The assessment of de facto power− Consideration of potential voting rights− Determining exposure to variable returns− Principal vs. agent issues• Need to exercise professional judgment appropriately to determine whetheran entity should be consolidated or deconsolidated• Critical assessment of whether the transition provisions of IFRS 10 have beenproperly applied16 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

De facto powerPower may exist when an investor holds < 50% of the votingrights• What to consider . . .– Size and dispersion of other investors’ voting rights– Potential voting rights held by investor, other vote holders or other parties– Rights arising from other contractual arrangements• Impact– Consolidation required if control is achieved– Impacts judgements policy note – describe why control was determined eventhough the investor holds

Potential voting rightsPotential voting rights may impact the control assessment• What to consider . . .– Voting rights do not have to be currently exercisable but consideration ofvalue (in/out/at-the-money, synergistic benefits, etc) is required.– Examples include:• Warrants• Convertible debt• Purchased options to acquire voting interests• Forward contracts for voting interests– Look at shareholders agreements and standalone rights in other contracts– Consideration of rights in other contracts to determine if they are protective orparticipating18 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Transition Considerations• Retrospective application:– The level of effort could be significant:• Information available• Complexity of operation• Passage of time from the date of control to transition date• Limited exceptions – refer to IFRS 10.C3 – C6• Cumulative adjustment through the balance sheet and opening retainedearnings as of January 1, 2012• Comparative information for all periods presented will require restatement• Consequential amendments to footnotes for all periods presented may alsobe required19 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Disclosure Considerations• Disclosures previously discussed pursuant to IAS 8 and IAS 34• IFRS 12– Other IFRS 12 disclosures are annual disclosure requirements and thus arevoluntary in Q1– An entity should apply judgment on what annual disclosures should be included in Q1• Judgment will depend on whether there is a material impact to the financialstatements arising from adoption of the new standards and the event ortransaction is significant to the understanding of the changes in the entity’sfinancial position or performance since the last annual reporting period [IAS34.15C]20 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Example – Consolidation of previously unconsolidatedentityFacts:• Entity A has a 48% ownership in Entity C and was accounted for using the equity methodof accounting.• On adoption of IFRS 10 on January 1, 2013, management concluded that A has controlover C since its acquisition in June 2009 on the basis of A’s absolute size of holding in Cand the relative size of and dispersion of the shareholdings owned by the othershareholders. Therefore under IFRS 10, C has been a subsidiary of A since June 2009.• The impact is material to all periods presentedQ1 disclosure considerations:• IAS 8:– Reconciliations of profit & loss for the 3 months ended March 31, 2013 and 2012; and– Reconciliation of net assets and equity as at January 1, 2012, March 31, 2013 andDecember 31, 2012• IAS 1 and CSA NI 51-102:– Opening balance sheet– Amend accounting policy for basis of consolidation and assess other footnotedisclosures– Impact on critical judgements21 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IFRS 11Joint Arrangements22 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Quick Hits: What you need to know about IFRS 11…There are many areas of complexityIdentifying whetherjoint control exists• No single party should be able to act unilaterally at anypoint of time to control the activity when joint controlexists• Potential voting rights and rules around casting votesIdentifying whether ajoint arrangement is ajoint venture or jointoperationComplex• Many forms and structures• Use of a separate vehicle can make the determinationof the type of the joint arrangement more difficult• Underlying rights and obligations of the parties in thecontext of contractual arrangement and other facts andcircumstancesTransition from IAS 31to IFRS 11• All joint arrangements should be reassessed23 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.23

Key accounting implications• Joint arrangements are either joint operations or joint ventures. There is nolonger an accounting policy choiceJoint ventureJoint operationEquity methodShare of rights to assets and obligations forliabilities, revenues and expenses recorded• Many joint arrangements operated through a separate legal vehicle previouslyaccounted for under the proportionate consolidation method will now beconsidered to be joint ventures and thus be accounted for using the equitymethod24 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Key accounting implications – Joint venture versus jointoperationStep 1Is the arrangement conducted through aseparate vehicle?NoYesStep 2Does legal form of the vehicle give partiesrights to assets and obligations for liabilities?YesStep 3Do terms of the contractual arrangementgive parties rights to assets and obligation forliabilities?NoYesJointoperationStep 4NoOther facts and circumstances – is thedesign of the arrangement such that partiesin effect have rights to assets and obligationsfor liabilities?YesNoJoint venture25 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Transition Considerations• Modified Retrospective application• Proportionate consolidation to equity method: apply at beginning of earliestperiod presented (January 1, 2012) IFRS 11.C2 – C5• Equity method to accounting for share of assets and liabilities: modifiedretrospective treatment applied at beginning of earliest date presented (January1, 2012) IFRS 11.C7-C9• Comparative information for all periods presented will require restatement• Consequential amendments to footnotes for all periods presented may alsobe required26 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Disclosure Considerations• Disclosure requirements are in both IFRS 11 and IFRS 12. Also consider thosedisclosures previously discussed pursuant to IAS 8 and IAS 34.• IFRS 11– IFRS 11.C5 requires specific disclosure of the aggregate breakdown of all assets andliabilities aggregated into equity method investments when transitioning fromproportionate consolidation to equity method– IFRS 11.C10 requires a reconciliation between the equity investment derecognized,and the assets and liabilities recognized, together with any remaining differenceadjusted against retained earnings.• IFRS 12– Other IFRS 12 disclosures are annual disclosure requirements and thus arevoluntary in Q1– An entity should apply judgment on what annual disclosures should be included in Q127 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Proportionate consolidation to equity methodFacts:• Entity A has a 50% ownership in JV Electronics Limited and was accounted for using theproportionate consolidation method.• Under IFRS 11, JV Electronics Limited is determined to be a joint venture and thecompany’s interest in JV Electronics is required to be accounted for using the equitymethod.What journal entries would need to be made?Dr. Proportionately consolidated liabilitiesDr. New value for Equity Investment (Note 1)Cr. Proportionately consolidated assets (Note 2)Note 1 – The value of the new equity method investment is the aggregate of the carryingamounts derecognized by ceasing proportionate consolidation. An initial assessment ofimpairment is required at date of transition. Special guidance for negative net assets.Note 2 – Need to ensure that fair value bumps are included in the assets and liabilitiesbeing recognized and that goodwill is allocated to the asset group being derecognized, ifappropriate.28 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Example – Proportionate consolidation to equity method(cont.)Annual IFRS 12 disclosures for consideration in Q1 (cont.)For each materialJoint operationJoint ventureName of subsidiary, joint arrangement or associate Nature of relationship Principal place of business and, if different, country ofincorporationProportion of ownership and, if different, voting rights held Method of accounting (equity method or fair value)Fair value, if equity method is used and investee is quotedUnrecognized losses for equity method investmentsRestrictions on access to an investee’s assetsDifferent reporting date of investor and investeeCommitmentsContingent liabilities= New requirement in IFRS 12; not in IAS 27, IAS 28, IAS 31.= Expanded requirement in IFRS 12 as compared with IAS 27, IAS 28, IAS 31.29 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IFRS 13Fair Value Measurement30 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Scope of IFRS 13This is not just a Financial Instrument standard!IFRS 3 IAS 18IAS 38IFRS 5 IAS 32IAS 40IAS 16IAS 36IAS 41* This is not an exhaustive list. Other standards and interpretations are impacted by IFRS 13.31 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Disclosures: Key principlesEntities should disclose information that helpsusers assess the following:• Assets and liabilities measured at fair valueon a recurring basis after initial recognition• Assets and liabilities measured at fair valueon a non-recurring basis after initialrecognition32 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Recurring vs. Non-recurring basisFocus on situations in which assets and liabilities are measured atfair value after initial recognition.Recurring basisRecurring fair value measurements of assetsor liabilities are those that other IFRSs requireor permit in the statement of financial positionat the end of each reporting periodExamples• Investment properties measured using thefair value model under IAS 40• Financial assets at fair value through profitor loss (e.g., held-for-trading investments)under IAS 39/IFRS 9• Available-for-sale investments under IAS 39• Property, plant and equipment/intangibleassets measured using the revaluationmodel under IAS 16/IAS 38• Biological assets under IAS 41Non-recurring basisNon-recurring fair value measurementsof assets or liabilities are those thatother IFRSs require or permit in thestatement of financial position inparticular circumstancesExamples• Assets classified as held for salemeasured at the lower of fair valueless costs to sell and their carryingamounts under IFRS 533 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Key remindersHave you considered the following. . . .• Taken an inventory of all items affected?• Adjustments to valuation models?• Impact on purchase price allocations for business combinations that occurredduring the first interim period?• Determined the principal or most advantageous market?• Determined the highest and best use for non-financial assets?• Determined the most representative price within the bid-ask spread?• Fair value hierarchy applies to both financial and non-financial assets andliabilities.• Impact from the assumption that a liability is transferred to another party ratherthan extinguished or settled?• Impact from any asset-specific restrictions?• Is non-performance risk reflected in the fair value of liabilities?34 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Transition Considerations• Prospective application required from January 1, 2013No adjustments to prior periods presented or retained earnings• Cumulative impact on existing balances are reflected through P&L or OCI,in the same manner as all other fair value adjustments relating to the item• Example:– A calendar year end entity adopts IFRS 13 effective January 1, 2013– The cumulative impact of any adjustments arising from changes to the method ofdetermining fair value to comply with IFRS 13 is recorded through P&L for all itemsmeasured at fair value through profit and loss or OCI for any items measured at fairvalue through OCI on January 1, 2013 and thus will impact net income/OCI for thethree months ended Q1 2013.35 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Disclosure Considerations• IAS 34.16A (j) includes the specific new disclosures required for financialinstruments to be included in interim financial statements:• IFRS 13. 91–93(h), 94–96, 98 and 99 (refer to Appendix A):– Fair value at reporting date and reason for fair value measurement (non-recurring only)– The level of the fair value measurement in the fair value hierarchy– Transfers between Levels 1 and 2, reasons for those transfers, and the entity's policyfor determining that a transfer has occurred– Description of the valuation techniques and inputs used for Level 2 and 3measurements and whether there have been any changes– Level 3 only:• Quantitative information about significant unobservable inputs used• Reconciliation of movements in fair value from opening to closing balances• Description of the valuation processes used• Narrative description of the sensitivity of the fair value measurement to changes in unobservableinputsNote that the extensive IFRS 13 disclosures required for annual financial statements apply, in many cases, to both financial andnon-financial balances. For example, non-financial assets and liabilities will also have to be allocated to a Level 1, 2, or 3 fair valuehierarchy under IFRS 13 plus additional disclosures for Level 3 inputs and sensitivities for such items36 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IFRIC 20 StrippingCosts in the ProductionPhase of a Surface Mine37 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IFRIC 20 – Stripping Costs in the Production Phase of aSurface MineBackground:• Stripping – Removing waste to gain access to mineral ore deposits• In the development phase, stripping costs are capitalized as part of depreciablecost of the mine, and depreciated once production beginsHighlights:• Activity provides improved access to ore = stripping activity asset*– Addition to or enhancement of existing asset– Initially measured at cost– Subsequently carried at cost of revalued amount less depreciation and impairmentslosses• Activity is in form of inventory = account for in accordance with IAS 2* Certain criteria must be met to recognize a stripping activity asset:• Probable future economic benefits• Can identify component of the ore body which access has been improved• Costs can be measured reliably38 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IFRIC 20 – Stripping Costs in the Production Phase of aSurface Mine (cont.)Initial measurement• Accumulation of cost incurred while undertaking stripping activity plus anallocation of directly attributable overhead costs– Examples of directly attributable overhead costs:• Salary costs of the mine supervisor overseeing that component of the mine• Rental costs of equipment hired specifically to perform the stripping activity• If activities are not separately identifiable, may need to allocate costs betweenthe inventory produced and the stripping activity asset– Cost of inventory produced vs. expected cost– Volume of waste extracted vs. expected volume– Mineral content of ore extracted vs. expected mineral contentSubsequent measurement• Stripping activity asset is depreciated over the component of the ore body thatbecomes more accessible as a result of the stripping activity (Units ofProduction method)39 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IFRIC 20 – Stripping Costs in the Production Phase of aSurface Mine (cont.)Transition• Apply to stripping costs incurred on or after the beginning of the earliest periodpresented• Stripping cost asset balance at transition:– Reclassified to asset which it relates– Recognize in opening retained earnings at the beginning of the earliest periodpresented if no identifiable component• Stripping cost liability (if any) recognised in profit or lossConsiderations• Is our current practice to expense stripping costs?• Can we identify the component of the ore body benefited?• Will we need to allocate costs between inventory and the stripping activityasset? If so, do we have an appropriate method in place?• Can we reliably measure the costs associated with the stripping activities?• Do we need to adjust our information systems, processes and controls?• Significant judgement is involved40 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IAS 19 (2011)Employee Benefits41 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Quick Hits: What you need to know about IAS 19R...Key changes: defined benefit plans• Elimination of corridor method• ‘Net interest’ replaces ‘interest cost’ and ‘expected return on plan assets’• Actuarial gains and losses are included in remeasurements– Recognized initially in OCI and can be transferred to another component of equitypolicy choice– Not recycled to the P&L• All past service costs recognized immediately• Treatment of contributions from employees or third parties ‘linked toservice’• Costs related to the management of plan assets are deducted from thereturn on plan assets– All other administrative costs are recognized in the P&L• Recognition criteria settlements and curtailments now aligned42 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Quick Hits: What you need to know about IAS 19R... (cont.)Key changes:• Definitions of short-term & long-term benefits– Distinction is based on when the benefit is expected to be settled• Recognition criteria for termination benefits– Termination benefits do not provide an entity with future economic benefits and arerecognized as an expense immediately• Enhanced disclosure requirements43 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Transition ConsiderationsTransition• Retrospective application– Cumulative impact is either recognized in opening retained earnings or, forremeasurements only, in another class of equity where this is consistent with theongoing policy choice of the entity.– Comparative information for all periods presented will require restatement (subject toexemption below)• Exemptions from retrospective application [IAS 19.173]– Carrying amounts of assets which include employee benefits costs incurred beforeapplication of 19R– Sensitivity disclosures required under 19.145 (Prior to Jan 1, 2014 only)44 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Disclosure ConsiderationsDisclosure• Mandatory disclosures are required pursuant to IAS 8 and IAS 34• Core principle of IAS 34 is to report an explanation of events and transactionssufficient to enable an understanding of the changes in financial position andperformance of the entity since the year-end. [IAS 34.15C]• The IAS 19 disclosures included in the interims should be provided in thecontext of this principle and in consideration of:– How the adoption of IAS 19R impacted the financial position and performance of theentity– The occurrence of any new events of transactions that occurred during the quarter– The ancillary impact of any other standards (e.g. a “new” subsidiary that was notpreviously consolidated that has a defined benefit plan)45 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q1 Disclosure Considerations (cont.)Disclosure• IAS 34 also includes specific requirements for events and transactions thatshould be disclosed in the interims (IAS 34.15-16A). Examples include:– Updated accounting policy note (34.16A.(a))– Restructuring provision reversals (15B.(c))– Changes impacting the fair value of financial assets (e.g. plan assets) (15B.(h)) andchanges in estimates (16A(d))• The nature and extent of disclosures required from one entity to another mayvary considerably and judgment will be required in determining whichdisclosures are voluntary vs. required for the Q1 interim financials.46 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IASB and IFRSInterpretations Committee(IFRIC) update47 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IASB work-plan (based on the IASB projected targets asat 25 March 2013)Major ProjectsFinancial InstrumentsClassification and MeasurementImpairmentHedge AccountingMacro hedgingInsurance ContractsLeasesRevenue RecognitionOther Active ProjectsAmendments to IFRS 11Amendments to IAS 19 (discount rate)Annual Improvements 2010-2012Annual Improvements 2011-2013Annual Improvements 2012-2014Bearer Plants (IAS 41)Amendments to IAS 16 and IAS 38Amendments to IAS 192013Q1 Q2 Q3 Q4RedeliberationsRedeliberationsIFRSDPEDEDIFRSIFRSEDIFRSIFRSEDEDIFRSIFRS48 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IASB work-plan (based on the IASB projected targets asat 25 March 2013) (cont.)Other Active Projects (cont.)Amendments to IAS 28Amendments to IAS 1 (going concern)Amendments to IFRS 13Novation of OTC derivativesAmendments to IAS 32Amendments to IAS 12Amendments to IAS 36Amendments to IFRS 10 and IAS 28Amendments to IAS 27InterpretationsLevies Charged by Public Authorities onEntities that Operate in a SpecificMarketPost-Implementation ReviewsIFRS 8IFRS 3Conceptual Framework2013Q1 Q2 Q3 Q4IFRSEDEDIFRSEDEDIFRSIFRSEDInterpretationPublish ReportInitiate reviewDP49 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

IFRIC Hot Topics• IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets – Variablepayments• IAS 1 Presentation of Financial Statements – going concern disclosures• IFRS 7 Financial Instruments: Disclosures – transfers of financial assetsdisclosure; offsetting• IAS 10 Events after the Reporting Period – reissuing previously issued financialstatements• IAS 32 Financial Instruments – put options over NCI50 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Resources and tools• Practical Guide to IAS 19 (2011)• Practical Guide to IFRS 11• IFRS In Focus newsletters– IAS 19: June 2011, May 2010– IFRS 10: May 2011– IFRS 11: February 2013– IFRS 13: May 2011, March 2013– Amended transition guidance IFRS 10, IFRS 11 and IFRS 12: July 2012• Archived webcasts– IFRS 13 and IAS 19: June 13, 2012– IFRS 10 and IFRS 11: September 10, 2012• iGAAP 2013: (includes examples and interpretations)– IAS 19: Chapter A15– IFRS 10: Chapter A24– IFRS 11: Chapter A27– IFRS 13: Chapters A7 and C6• Model Financial Statements and IFRS checklists – Click here51 Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.

Q&A52Bringing clarity to an IFRS world | IFRS quarterly technical update© Deloitte LLP and affiliated entities.