62 Orbit G arant 2012 annual rep O rt N OTES TO CONSOLIDATED FINANCIAL STATEMENTS continued For the years ended June 30 2012 and 2011 in thousands of Canadian dollars except for earnings per share and option data Reconciliation of earnings and comprehensive earnings June 30 2011 For the year ended Explanation Net earnings and comprehensive earnings under Canadian GAAP 12128 Differences in GAAP decreasing reported earnings Business acquisition expenses c 328 Change in fair value of contingent consideration b 116 Sharebased compensation a 238 Net earnings and comprehensive earnings under IFRS 11446 Changes in accounting policies In addition to the exemptions and exceptions discussed above the following narratives explain the signifcant differences between the previous Canadian GAAP accounting policies and the current IFRS policies applied by the Company Sharebased compensation Under IFRS when a sharebased payment vests in instalments over a vesting period graded vesting each instalment is acc ounted for as a separate arrangement as compared to Canadian GAAP which gave the choice of treating the instruments as a pool wi th the measurement being determined using the average life of the awards granted Reconciliation of Canadian GAAP to IFRS IFRS uses a conceptual framework which is similar to the Canadian GAAP But there are i mportant differences that exist in certain standards evaluation and disclosure Though the adoption of IFRS did not change the Companys cash fow it did bring changes to the Companys balance sheets and the activity results In order to allow the fnancial statement users to better understand these c hanges to the Companys consolidated balance sheet consolidated statement of earnings and comprehensive earnings prepared accordi ng to Canadian GAAP were restated according to the IFRS Standards at different dates and the differences in the statements are explai ned as required by IFRS 1