Notes toConsolidatedFinancial Statements  (Unaudited)  (Expressed in Canadian dollars)  Year ended December 31, 2014  At each reporting date, the Company assesses whether there is objective evidence that a financial asset is impaired.  The criteria used to determine if objective evidence of an impairment loss exists include: If such evidence exists, the Company recognizes an impairment loss as follows: (n) Accounting standards and amendments adopted by DIV  in 2014:  ( i ) Amendmentsto IAS 32- Offsetting Financial As sets and Financial Liabilities:  The amendments to IAS 32 clarify that an entity currently has a legally enfor ceable right to  set-off if that right is: 13  (m) Impairment of financial assets: 3. Significant accounting policies(continued):  DIVERSIFIED ROYALTY CORP .   not contingent on a future event; and  enforceable both in the normal course of business and in the event of default,  insolvency or bankruptcy of the entity and all counterparties.  Impairment losses on financial assets carried at amortized cost are reversed in subsequent  periods ifthe amount of the loss decreases and the decrease can be related objectively to  an event occurring after the impairment was recognized. The reversal is limited to an  amount that does not state the asset at more than what its amortized cost would have bee n  in the absence of impairment.  Financial assets carried at amortized cost: the loss is the difference between the amortized  costs of the loan or receivable and the present value of the estimated future cash flows,  discounted using the instrument’s original effective interest rate.   Significant financial difficulty of the Company counterparty;  Delinquencies in interest or principal payments: and   It becomes probable that the borrower will enter into bankruptcy or other financial  reorganization. 