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 12,128 Differences in GAAP decreasing reported earnings: Business acquisition expenses (c) (328) Change in fair value of contingent consideration (b) (116) Share-based compensation (a) (238) Net earnings and comprehensive earnings under IFRS 11,446 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. Share-based compensation Under IFRS, when a share-based 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 Company’s cash fow, it did bring changes to the Company’s balance sheets and the activity results. In order to allow the fnancial statement users to better understand these c hanges, to the Company’s 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.