66 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 a Sharebased compensation Canadian GAAP For grants of sharebased awards with graded vesting the total fair value of the award is recognized on a straightline basis over the employment period necessary to vest the award IFRS Each tranche in an award with graded vesting is considered a separate grant with a different vesting date and fair value Eac h grant is accounted for on that basis As a result the Company adjusted its expense for sharebased awards to refect this di fference in recognition for all stock options granted b Business combinations Contingent consideration Canadian GAAP Contingent consideration was recognized as part of the purchase price when it was paid IFRS Contingent consideration is recognized at fair value at the date of the acquisition date The Company has booked a contingent consideration related to the acquisition of 1085820 Ontario Limited Advantage Control Technologies c Business combination Acquisition costs Canadian GAAP The acquisition costs were accounted for as part of the purchase price IFRS The acquisition costs are accounted for as an expense in the statement of earnings The Company accounted for in the statement of earnings the acquisition costs related to the acquisitions of 1085820 Ontario Limited Advantage Control Technologies and Morris Drilling inc d Statement of earnings reclassification Canadian GAAP The income statement should present fairly the results of operations for the year and should provide some specifc information however the concept of the classifcation either by nature or by function is not addressed IFRS An entity shall present an analysis of expenses recognized in proft and loss using a classifcation based on either thei r nature or their function within the entity whichever provides information that is reliable and more relevant The Company believes that the classifcation of its expenses by function is more relevant As a result the amortization has been reclassifed between cost of contract revenue and general and administrative expenses Al so interest on longterm debt interest and bank charges foreign exchange losses and gain on disposal of property plant and equipment has been reclassifed in their respective function