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## Notes to consolidated financial statements September 27, 2014 and September 28, 2013 

(Millions of dollars, unless otherwise indicated) 

## 3. 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 toIFRS. 

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. 

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

The Corporation recorded the following adjustments: 

## FINANCIAL POSITION ITEMS 

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