impaiRment ReveRsals (x) Accounting for the Company’s joint venture in HighKan 6. A decrease in deferred income taxes of $0.2 million. 5. A decrease to the loss due to disposal of $0.05 million; and  4. A decrease in selling, general and administrative expenses due to depreciation expense of $0.2 million;  3. An increase in distribution expense due to depreciation expense of $0.06 million; 2. An increase in cost of sales due to depreciation expense of $1.0 million; 1. A decrease to property, plant and equipment of $0.8 million;  4. Opening retained earnings was adjusted by $6.3 million. 3. A net increase in deferred tax liability of $3.2 million was recognized; and  2. The Company recognized a decrease in accumulated depreciation of $3.8 million relating to the restatement of accumulated  depreciation to reflect updates in property, plant and equipment useful lives to correspond with the assessment criteria in  accordance with IFRS as compared to Canadian GAAP and an increase in accumulated depreciation in the amount of $0.3  million relating to the componentization of the Company’s real estate assets;  1. The Company applied the fair value as deemed cost exemption in respect of the production equipment for manufacturing  plants located in Lunenburg, Nova Scotia, Danvers, Massachusetts and Portsmouth, New Hampshire. The valuation of the  equipment performed at January 3, 2010 resulted in an increase in the cost of fixed assets of $6.0 million;  (ix) Property, plant and equipment (viii) Provisions Canadian GAAP – Reversal of impairment losses is not permitted. IFRS – Reversal of impairment losses is required for assets other than goodwill if certain criteria are met. The Company has not  identified the need to reverse any previously taken impairment with the exception of the de-recognition of the impairments taken for  its indefinite lived brand assets discussed above.  Under IFRS, provisions are distinguished from accrued liabilities as liabilities of uncertain timing or amount. As a result, on transition  to IFRS, the Company has reclassified certain balances previously included in accounts payable and accrued liabilities on the  statement of financial position, in the amount of $1.4 million. Please refer to additional disclosures included in  note 11  to the financial statements.  As stated in the section entitled “IFRS 1 Exemptions” the Company elected to recognize to restate its property, plant and equipment  using a combination approach as discussed in  note 26  (b) (v). In applying this approach, as at the transition date: As a result of the adjustments above, as at and for the fifty-two weeks ended January 1, 2011 the Company recognized: In February 2010, subsequent to the Company’s date of transition to IFRS, the Company entered into a joint arrangement (see  note 7  in  these statements for additional details). In accordance with Canadian GAAP requirements, the Company used proportionate  consolidation to account for its investment in HighKan. As at the transition date, existing IFRS standards permitted a choice between  equity-method accounting and proportionate consolidation for joint arrangements; however, in the second quarter of 2011, the  International Accounting Standards Board finalized IFRS 11 – Joint Arrangements (“IFRS 11”), which was consistent with Exposure  Draft 9 –  Joint Arrangements  (“ED 9”). Expecting IFRS 11 to be finalized consistent with ED 9, which prohibited the use of proportionate  consolidation, the Company elected to restate its accounting for its investment in HighKan using the equity method of accounting  effective February 10, 2010.  114 HIGH lIneR FooDS InCoRpoRAteD