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

(Millions of dollars, unless otherwise indicated) 

## 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. 

## 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. 

## Impairment of assets 

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

## Consolidated financial statements 

IFRS 10 “Consolidated Financial Statements” replaces SIC-12 “Consolidation - Special Interest Entities” and certain parts of IAS 27 “Consolidated and Separate Financial Statements”. This standard eliminates the risk/benefit-based approach and uses control as the sole basis for consolidation. An investor controls an investee if and only if the investor has all of the following elements: 

a) power over the investee; 

b) exposure or rights to variable returns from involvement with the investee; 

c) the ability to use power over the investee to affect the amount of the investor's returns. 

This new standard did not impact the Corporation's annual consolidated financial statements. 

## Joint arrangements 

IFRS 1 1 “Joint Arrangements” supersedes IAS 31 “Interests in Joint Ventures” and SIC-13 “Jointly Controlled Entities - Non-Monetary Contributions by V enturers”. This standard describes two types of joint arrangements which dif fer according to the rights and obligations of the partners: joint operations and joint ventures. IFRS 1 1 eliminates the proportionate consolidation method for joint ventures and requires the equity method. For joint operations, it requires recognition of a joint operator’s share of each of the items comprising the joint arrangement. This new standard did not impact the Corporation's annual consolidated financial statements. 

## Disclosure of interests in other entities 

IFRS 12 “Disclosure of Interests in Other Entities” requires that an entity disclose more information on the nature of and risks associated with its interests in other entities (i.e. subsidiaries, joint arrangements, associates or unconsolidated structured entities) and the ef fects of those interests on its financial statements. Additional information is disclosed in notes 4 and 12 . 

## RECENTL Y ISSUED 

## Financial instruments 

In November 2009, the IASB issued IFRS 9 “Financial Instruments”. This new standard replaces the various rules of IAS 39 “Financial Instruments: Recognition and Measurement” with a single approach to determine whether a financial asset is measured at amortized cost or fair value. This approach is based on how an entity manages its financial instruments and the contractual cash flow characteristics of the financial assets. 

In October 2010, the IASB issued revisions to IFRS 9, adding the requirements for classification and measurement of financial liabilities contained in IAS 39. 

