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In addition to their salaries, the Corporation also provides long-term compensation in the form of options and RSUs. Key management personnel compensation comprised the following: 

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## CRITICAL ACCOUNTING ESTIMATES AND POLICIES 

Management is required to make estimates when preparing the financial statements. Significant estimates include the amount of liabilities for services provided but not yet invoiced, stock-based compensation expenses, future income tax amounts, valuation of intangible assets and preferred limited partnership units and valuation of outstanding warrants. 

The Corporation capitalizes legal and accounting costs relating to a specific transaction once a letter of intent has been signed. The Corporation's transactions structured as limited partnerships or LLC’s are not amortized and will be assessed for objective evidence of impairment at each balance sheet date. The Corporation's intangible assets are being amortized over the 80-year term of the agreements on a straight- line basis. 

## RECENT ACCOUNTING PRONOUNCEMENTS 

## Transition to International Financial Reporting Standards 

The Corporation has adopted International Financial Reporting Standards (“IFRS”) for its 2011 fiscal year as required by the Accounting Standards Board of the Canadian Institute of Chartered Accountants. The Corporation provided information on its transition to IFRS in its 2010 Annual Management’s Discussion and Analysis. The assessments and impacts discussion in the 2010 Annual Management’s Discussion and Analysis remains largely unchanged. 

Upon implementation of IFRS, the Corporation recognized an increase in the fair value of LifeMark Health and a decrease in the fair value of LMS while the fair values of Solowave and KMH are unchanged. The impact of these two adjustments resulted in a net increase to the value of Preferred LP units of $11.2 million effective January 1, 2010, a net increase to the value of Preferred LP units of $14.4 million at December 31, 2010. Under IFRS in 2011, the Corporation recognized a net increase to the value of Preferred LP units of $1.1 million for the year ended December 31, 2011. 

Upon implementation of IFRS, the Canadian GAAP deferred credit was reclassified to retained earnings at January 1, 2010. Additionally, all deferred income tax asset and liability accounts were combined into one net deferred income tax asset at each of January 1, 2010, December 31, 2010 and December 31, 2011. 

Upon implementation of IFRS, the Corporation recognized an increase to stock-based compensation expenses recorded to date at January 1, 2010 of $0.398 million and a decrease to stock-based compensation expenses of $0.055 million for the year ended December 31, 2010. Also upon implementation of IFRS, the Corporation reduced stock-based compensation and increased dividends paid in 2010 by $0.226 million for all payments in lieu of dividends under the RSU Plan. Under IFRS for the year ended December 31, 2011, payments in lieu of dividends under the RSU Plan were $0.249 million. 

The Corporation has provided a detailed explanation of the impacts of this transition in Note 13 of the Corporation’s 2011 audited financial statements (“Note 13”). Note 13 includes reconciliations of the 

