AECON GROUP INC 45 The excess of the sum of the consideration transferred the amount of any noncontrolling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the Companys share of the identifable net assets acquired is recorded as goodwill If this amount is less than the fair value of the net assets of the subsidiary acquired such as in the case of a bargain purchase the difference is recognized directly to proft or loss Noncontrolling interests represent the equity in a subsidiary not attributable directly or indirectly to a parent and are presented in equity in the consolidated balance sheets separately from the parents shareholders equity 424 OPERATING SEGMENTS Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker The chief operating decision maker is responsible for allocating resources and assessing the performance of the operating segments and has been identifed as the Executive Committee that makes strategic decisions 5 FUTURE ACCOUNTING CHANGES IFRS standards and interpretations that are issued but not yet effective as at December 31 2012 are disclosed below The Company intends to adopt these standards as applicable when they become effective IAS 1 Presentation of Items of Other Comprehensive Income Amendments to IAS 1 The amendments to IAS 1 change the disclosure of items presented in other comprehensive income IAS 1 will require the presentation of items in other comprehensive income as two separate groups based on whether or not those items will be recycled to proft or loss in the future The amendment affects presentation only and has no impact on the Companys fnancial position or results of operations The amendment becomes effective for the Company for annual periods beginning on or after January 1 2013 IAS 19 Employee Benefts Revised The amendment changes recognition and measurement standards for defned beneft pension expense and termination benefts The amendment also introduces expanded disclosure requirements This amendment is effective for years beginning on or after January 1 2013 The Company does not anticipate any material impact to the Companys fnancial position or results of operation from adoption of this standard IFRS 7 Disclosures Offsetting Financial Assets and Financial Liabilities Amendments to IFRS 7 These amendments require an entity to disclose information about rights to setoff and related arrangements eg collateral agreements The disclosures provide users with information that is useful in evaluating the effect of netting arrangements on an entitys fnancial position The new disclosures are required for all recognized fnancial instruments that are set off in accordance with IAS 32 Financial Instruments Presentation The disclosures also apply to recognized fnancial instruments that are subject to an enforceable master netting arrangement or similar agreement irrespective of whether they are set off in accordance with IAS 32 These amendments become effective for annual periods beginning on or after January 1 2013 and are not expected to impact the Companys fnancial position or results of operations IFRS 9 Financial Instruments Classifcation and Measurement IFRS 9 as issued refects the frst phase of the IASBs work on the replacement of IAS 39 and applies to the classifcation and measurement of fnancial assets and fnancial liabilities as defned in IAS 39 IFRS 9 has two measurement categories amortized cost and fair value All equity instruments are measured at fair value A debt instrument is measured at amortized cost only if the entity is holding it to collect contractual cash fows and the cash fows represent principal and interest otherwise it is at fair value through proft or loss IFRS 9 was also updated to include guidance on fnancial liabilities and derecognition of fnancial instruments This guidance is similar to the guidance included in IAS 39 relating to fnancial liabilities and derecognition of fnancial instruments IFRS 9 is effective for years beginning on or after January 1 2015 The Company has not yet determined the impact of adopting IFRS 9 IFRS 10 Consolidated Financial Statements The IASB issued IFRS 10 which replaces the current guidance in IAS 27 Consolidated and Separate Financial Statements and SIC 12 Consolidation Special Purpose Entities IFRS 10 builds on existing principles by identifying the concept of control as the determining factor in whether an entity should be included within the consolidated fnancial statements of the parent company and provides additional guidance to assist in the determination of control IFRS 10 is not expected to impact the consolidation of any investments currently held by the Company IFRS 10 is effective for years beginning on or after January 1 2013 IFRS 11 Joint Arrangements The IASB issued IFRS 11 which replaces the current guidance in IAS 31 Interests in Joint Ventures IFRS 11 reduces the types of joint arrangements to two joint ventures and joint operations IFRS 11 requires equity accounting for interests in joint ventures eliminating the existing policy choice of proportionate consolidation for jointly controlled entities in IAS 31 Accounting for joint operations will follow accounting similar to that for jointly controlled assets and jointly controlled operations under IAS 31 This standard becomes effective for annual periods beginning on or after January 1 2013 and will be applied retrospectively for joint arrangements existing at the date of initial application Most of the Companys existing joint arrangements are expected to be classifed as joint operations under the new standards with no signifcant change in the accounting for these projects However a few joint arrangements will be classifed as joint ventures under the new standard and as a result will be accounted for using the equity method instead of proportionate consolidation While adoption of this standard will not impact the overall reported proft attributable to shareholders IFRS 11 will impact the amounts reported for revenue and expense items in the consolidated statements of income For 2012 after applying the standard there will be an estimated reduction of reported revenue of approximately 60000 and as at December 31 2012 current assets and current liabilities will be reduced by approximately 79000 and 48000 respectively while noncurrent assets and