64 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) Consolidated statement of earnings and comprehensive earnings for the year ended June 30, 2011 Canadian IFRS IFRS GAAP adjustments reclass IFRS Explanation $ $ $ $ Contract revenue 127,738 127,738 Cost of contract revenue (d) 92,471 6,793 99,264 Gross proft 35,267 — (6,793) 28,474 Expenses General and administrative expenses (a), (c), (d) 9,247 566 1,750 11,563 Amortization of property, plant and equipment (d) 7,159 (7,159) — Amortization of intangible assets (d) 1,510 (1,510) — Foreign exchange losses (d) 41 (41) — Gain on disposal of property, plant and equipment (d) (126) 126 — Interest on long-term debt (d) 258 (258) — Interest and bank charges (b), (d) 182 116 (298) — Other operating expenses (d) — 41 41 Finance costs (d) — 556 556 18,271 682 (6,793) 12,160 Earnings before the following items 16,996 (682) — 16,314 Share in net earnings of associate 225 225 Gain on investments in associate 209 209 Earnings before income taxes 17,430 (682) — 16,748 Income taxes 5,302 5,302 Net earnings and comprehensive earnings 12,128 (682) — 11,446