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There was no impact on the Company’s opening statement of financial position; however, the Company was required to recognize adjustments in subsequent periods as follows: 

As at and for the 52 weeks ended January 1, 2011: 

1. A decrease in cash and cash equivalents of $0.2 million; 

2. A decrease in accounts receivable and prepaid expenses of $0.01 million; 

3. A decrease in inventories of $1.5 million; 

4. A decrease in property, plant and equipment of $0.06 million; 

5. A decrease in other receivables and sundry investments of $0.03 million; 

6. An increase in investment in equity-accounted investee of $0.15 million; 

7. A decrease in accounts payable and accrued liabilities of $1.6 million; 

8. The elimination of non-controlling interests (a decrease of $0.05 million); and 

9. The recognition of share of profit of equity-accounted investee net of income taxes of $0.02 million. 

## (xi) Capital transactions 

As detailed in note 23 , the Company completed a share repurchase in the second quarter of 2010 and wound up a subsidiary company that had held all repurchased shares in the 4th quarter of 2010, resulting in the cancellation of the shares held by the subsidiary. As a result of restating the purchase price allocation of FPI on transition to IFRS (as detailed in note 26 (c)(i)), the Company adjusted the cost base of the common and non-voting equity shares. 

As a result, the Company was required to recognize adjustments with respect to the capital transactions completed throughout 2010 as at January 1, 2011 as follows: 

1. An increase to share capital of $1.5 million; 

2. A decrease to contributed surplus of $1.4 million; and 

3. A decrease to retained earnings of $0.1 million. 

## (xii) Income taxes 

The above changes decreased (increased) the Company’s net deferred tax liability as follows: 

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The effect on the consolidated statement of comprehensive income for the year ended January 1, 2011 was to decrease the previously reported tax charge for the period by $0.7 million. 

The adjustment in note (iii)  relating to the recognition of the actuarial loss in other comprehensive income resulted in an increase in the deferred tax asset of $0.6 million, with the related tax recovery recorded in other comprehensive income for the year ended January 1, 2011. 

Under IFRS, all deferred taxes are classified as non-current, irrespective of the classification of the underlying assets or liabilities to which they relate, or the expected reversal of the temporary difference. The effect is to reclassify $3.8 million at January 3, 2010 and $2.4 million at January 1, 2011 from current deferred income tax assets to long-term deferred income tax assets or liabilities. 

