Notes to Consolidated Financial Statements  Year ended December 31, 2011  Notes to the reconciliations  (a) Previously under GAAP, the Company accounted for share based payments by allocating expenses  for each option issuance on a straight-line basis. Under IFRS, the related expense has been adjusted  to reflect graded vesting of the outstanding share-based payments. Additionally, payments in lieu of  dividends on RSUs were previously expensed under GAAP and now are recorded as dividends under  IFRS. The impact arising from the change is summarized as follows:  (b) Previously under GAAP, as a result of accounting for a reverse takeover in July 2008, the Company  recorded a deferred credit on its Balance Sheet. IFRS does not recognize the existence of the  deferred credit thus it is immediately written off against retained earnings. The impact arising from  the change is summarized as follows:  (c) In accordance with IFRS, financial assets designated as available-for-sale have been recognized at  fair value. Under GAAP, these assets were previously carried at cost. The impact arising from the  change is summarized as follows:  (d) In accordance with IFRS, no deferred income tax balances are shown as current on the consolidated  statement of financial position.  50  2011 Annual Report  Alaris Royalty Corp. 1 January  31 December  Consolidated statement of comprehensive income 2010 2010 Non-cash stock based compensation expenses  $ (54,849)  Stock based compensation expenses  (226,105)  Adjust before income tax  (280,954) Consolidated statement of financial position  Contributed surplus  $ 398,568 280,954 Related tax effect  (115,585) (81,477) Adjustment to retained earnings  $ 282,983  $ 199,477  1 January  31 December  Consolidated statement of financial position 2010 2010 Deficit/Retained earnings  $ 23,661,017   $ 20,795,507  Adjustment to retained earnings   $23,661,017 $ 20,795,507 1 January  Year ended  31 Dec  Consolidated statement of comprehensive income 2010 2010 Net change in fair value of available for sale assets  $14,381,679  Adjust before income tax  14,381,679 Consolidated statement of financial position  Preferred LP Units  $ 11,161,358 14,381,679 Related tax effect  (1,395,170) (1,797,710) Adjustment to retained earnings  $ 9,766,188  $ 12,583,969 