Notes to Consolidated Financial Statements  Year ended December 31, 2011  2. Statement of compliance (continued) additional liability could result from audits by taxing authorities. Where the final outcome of these  tax related matters is different from the amounts that were initially recorded, such differences will  affect the tax provisions in the period in which such determination is made.  Information about assumptions and estimation uncertainties that have a significant risk of resulting  in a material adjustment within the next twelve months are as follows:  Key assumptions used in the calculation of the fair value of available for sale financial assets are  discount rates, terminal value growth rates and annual performance metric growth rates. See note 5  for details in respect of the calculation.  Management makes estimates on future taxable income that generates the calculations for the  deferred income tax expense, assets and liabilities.  Key assumptions used in discounted cash flow projections  Utilization of tax losses  3.  Significant accounting policies:  (a) Basis of consolidation  (i) Subsidiaries  (ii) Transactions eliminated on consolidation  (b) Revenue recognition  (c) Financial instruments  (i) Non-derivative financial assets  Alaris Royalty Corp. 2011 Annual Report  25  The Corporation derecognizes a financial asset when the contractual rights to the cash flows from  the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset  in a transaction in which substantially all the risks and rewards of ownership of the financial asset  are transferred.  The Corporation recognizes revenue from the distributions and royalties it receives from the Private  Company Partners as they become due under the partnership agreement, limited liability  corporation agreement, or royalty agreement with each specific Partner.  Intra-Corporation balances and transactions, and any unrealized income and expenses arising from  intra-Corporation transactions, are eliminated in preparing the consolidated financial statements.  Subsidiaries are entities controlled by the Corporation. The financial statements of subsidiaries are  included in the consolidated financial statements from the date that control commences until the  date that control ceases.  The accounting policies set out below have been applied consistently to all periods presented in  these consolidated financial statements and in preparing the opening IFRS statement of financial  position at January 1, 2010 for the purposes of the transition to IFRS, unless otherwise indicated.