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## DERIV ATIVE FINANCIAL INSTRUMENTS 

The Corporation adopted a risk management policy, approved by the Board of Directors in December 2005, setting forth guidelines relating to its use of derivative financial instruments. These guidelines prohibit the use of derivatives for speculative purposes. During fiscal 2014, the Corporation used derivative financial instruments as described in notes 2 and 30 to the consolidated financial statements. 

## NEW ACCOUNTING POLICIES 

## ADOPTED IN 2014 

In fiscal 2014, the Corporation adopted the new accounting policies described below. 

## Employee benefits 

IAS 19 “Employee Benefits” (IAS 19R) was amended. IAS 19R eliminates the corridor method for recognizing changes (actuarial gains and losses) in defined benefit obligations and plan assets and requires that they be recognized in other comprehensive income when they occur . Application of this amendment had no impact, as the Corporation has used immediate recognition of actuarial gains and losses in other comprehensive income since the transition to International Financial Reporting Standards (IFRS). 

IAS 19R eliminates the possibility of deferring recognition of past service costs related to unvested benefits and requires their immediate recognition in the income statement. Application of this amendment had no impact for the Corporation, as no past service costs have been deferred since the transition to IFRS. 

Under IAS 19, the employee benefit expense includes interest income corresponding to management’s expected return on plan assets. IAS 19R eliminates the return on plan assets component and requires recognition of interest on the dif ference between defined benefit obligations and plan assets based on the discount rate for measuring obligations. This net interest is no longer presented as an employee benefit expense but as part of financial costs. 

IAS 19R also requires additional disclosures to present the characteristics of defined benefit plans which is presented in note 25 of annual consolidated financial statements. 

IAS 19R has been applied retroactively with restatement of prior periods’annual consolidated financial statements. 

The adjustments are explained in note 3 to the annual consolidated financial statements included in this annual report. 

## Offsetting financial assets and financial liabilities 

IAS 32 “Financial Instruments: Presentation” was amended to clarify the requirements for offsetting financial assets and financial liabilities. It specifies that the right of set-of f has to be legally enforceable even in the event of bankruptcy . IFRS 7 “Financial Instruments: Disclosures” was also amended to improve disclosures on offsetting of financial assets and financial liabilities. These amendments did not impact the Corporation's annual consolidated financial statements, but additional information is disclosed in note 19 of these financial statements. 

## Fair value measurement 

IFRS 13 “Fair V alue Measurement” establishes a single framework for fair value measurement of financial and non- financial items. IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It also requires disclosure of more information on fair value measurements. This new standard did not impact the Corporation's annual consolidated financial statements, but additional information is disclosed in notes 11, 12, 15, 16 and 30 of these financial statements. 

## Impairment of assets 

IAS 36 “Impairment of Assets” was amended to require disclosures about assets or cash generating units for which an impairment loss was recognized or reversed during the period. Additional information is disclosed in note 6 to the annual consolidated financial statements. 

