9 NORTHERN COLLEGE OF APPLIED ARTS AND TECHNOLOGY Notes to Financial Statements Years ended March 31, 2013 and March 31, 2012 2. Transitional adjustments: (a) Net as s e ts : The following table summarizes the impact of the transition to Canadian public sector accounting standards on the College's net assets as of April 1, 2011: Net as s e ts : As previously reported under Canadian generally accepted accounting principles, March 31, 2011 $ 11,298,381 Transition election to recognize all cumulative actuarial gains and losses on employee future benefits 242,000 Adjustment for change in discount rate used to calculate employee future benefits and compensated absences (71,540) Adjustment to record accumulated but not vested sick leave (1,105,000) Restated, April 1, 2011 $ 10,363,841 In accordance with transitional provisi ons of Canadian public sector accounting standards, the College has elected to use t he following exemption for employee future benefits: The College has elected to recognize all cumulative actuarial gains and losses and past services costs in opening net assets. Accumulated but not vested sick leave: Canadian public sector accounting standards requi res the recognition of a liability for sick leave benefits that accumulate, but do not ves t. As a result, the College has recognized a liability and charge to net assets as disclosed in the table above. (i) Amortization of actuarial gains/losses The College has elected to recognize actuaria l gains and losses at the date of transition to Canadian public sector accounting standards di rectly in net assets. As a result, the College has recognized an increased li ability and a charge to net assets. (ii) Discount rate used to calculate employee future benefits Canadian public sector accounting standards r equires these liabilities to be calculated with a discount rate that is equal to either the College’s rate of borrowing or the rate of return on the plan assets. Prior to transition to these new standards, the discount rate to be equal to the yield on high quality corporate bonds. The College has chosen to discount these liabilities using its internal ra te of borrowing. The change in the discount rate resulted in changes to the related liab ilities and charges to excess of revenue over expenditure as disclosed.