The liability method of tax allocation is used in accounting for income taxes. Under this method, deferred income tax  assets and liabilities are determined based on differences between the carrying amount and tax basis of assets and  liabilities and measured using the substantively enacted tax rates and laws that will be in effect when the differences  are expected to reverse. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be  available against which deductible temporary differences can be utilized. Deferred tax liabilities are generally recognized  for all taxable temporary differences. Deferred tax liabilities are recognized for taxable temporary differences arising in investments in subsidiaries and joint  ventures except where the reversal of the temporary difference can be controlled and it is probable that the difference  will not reverse in the foreseeable future. Deferred tax liabilities are not recognized on temporary differences that arise  from the initial recognition of goodwill which is not deductible for tax purposes. Deferred tax assets and liabilities are  not recognized in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other  than in a business combination. A provision for other liabilities is recognized if, as a result of a past event, CI has a present legal or constructive obligation  that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the  obligation. In the event that the time value of money is material, provisions are determined by discounting the expected  future cash flows at a pre-tax rate that reflects a current market assessment of the time value of money and the risks  specific to the liability. Provisions for other liabilities Foreign currency translation Monetary assets and liabilities are translated into Canadian dollars using the exchange rates in effect at the statement  of financial position date. Non-monetary assets and liabilities are translated into Canadian dollars using historical  exchange rates. Revenue and expenses are translated at average rates prevailing during the month. Other foreign currency  transactions are translated into Canadian dollars using the exchange rate in effect on the transaction date. Translation  exchange gains and losses are included in other income in the month in which they occur. 58 [in thousands of Canadian dollars, except per share amounts] December 31, 2012 and 2011 Notes to Consolidated Financial Statements