notes to the Consolidated Financial Statements (cont’d) As at and for the fifty-two weeks ended January 1, 2011 the Company recognized: With respect to reversal of an impairment of a financial asset, IAS 39 indicates that if, in a subsequent period, we expect to, or begin  to use more of the Company’s facility, we would reverse the impairment taken if the decrease in the applicable impairment previously  taken can be related objectively to an event occurring after the impairment was recognized (such as additional drawings on the  Company’s credit facility), and the previously recognized impairment loss would be reversed either directly in income or by adjusting  an allowance account. The reversal should be made such that the carrying amount of the financial asset does not exceed what the  amortized cost would have been had the impairment not been recognized at the date the impairment is reversed. The Company has  not identified the need to reverse impairments taken as at this time. As described in  note 26  (d) (i), the Company completed an impairment review of its assets both at its IFRS transition date, January 3,  2010 and for the fiscal year ended January 1, 2011 and concluded in both instances that no impairment losses in respect of the  Company’s cash-generating units should be recognized throughout 2010 nor has the Company identified any indicators of  impairment subsequently throughout 2011. The Company assesses impairment for its indefinite lived intangible assets and goodwill  by comparing the recoverable amount for each of its cash-generating units with its carrying value. The Company traditionally  performs its annual test for impairment of its cash-generating units in the fourth quarter in accordance with the policy described in  note 3 (b).  The Company has determined that all prior period impairments recognized under Canadian GAAP with respect to its brand intangible  assets are to be derecognized as a result of transitioning to IFRS. The method used to test if any impairment should be recognized for  indefinite lived brand assets under Canadian GAAP is not IFRS-compliant. IFRS requires that indefinite lived intangible assets like the  Company’s brands are tested as part of the Company’s test for impairment of its CGUs. As a result, on transition to IFRS, the Company  derecognized previous impairments recognized under Canadian GAAP because there was no indication of impairment resulting from  the IFRS-compliant transition date impairment test of the Company’s CGUs.  As a result, the Company made the following adjustments to record the reversal of the impairment of indefinite lived intangible asset  as at the transition date: The transition adjustment above had no impact on subsequent reporting periods. Changes in the Company’s accounting policies on transition from Canadian GAAP to IFRS with respect to the recognition of an  impairment of a non-financial asset are as follows: Canadian GAAP – A recoverability test is performed by first comparing the undiscounted expected future cash flows to be derived  from the asset to its carrying amount. If the asset does not recover its carrying value, an impairment loss is calculated as the excess  of the asset’s carrying amount over its fair value. IFRS – The impairment loss is calculated as the excess of the asset’s carrying amount over its recoverable amount, where recoverable  amount is defined as the higher of the asset’s fair value less costs to sell and its value-in-use. Under the value-in-use calculation, the  expected future cash flows from the asset are discounted to their net present value. As a result of the change in measurement  methodology, the Company may determine and be required to recognize impairments under IFRS that were not applicable under  Canadian GAAP as a result of the change in the calculation under IFRS as noted above.  Canadian GAAP – If indication of impairment is identified, the asset’s carrying value is compared to the asset’s undiscounted cash  flows. If the undiscounted cash flows are less than the carrying value, the asset is impaired by an amount equal to the difference  between the discounted cash flows and the carrying value. IFRS – If indication of impairment is identified, the asset’s carrying value is compared to the asset’s discounted cash flows. If the  discounted cash flows are less than the carrying value, the asset is impaired by an amount equal to the difference between the  discounted cash flows and the carrying value. ReCognition ofan impaiRment deteRmination ofthe ReCoveRable amount (vii) Impairment of a non-financial asset 1. A decrease to bank loans of $0.04 million;  2. A net deferred income tax liability of $0.01 million; and 3. A decrease to short-term interest expense (finance costs) $0.04 million with an increase in deferred taxes of $0.01 million. 1. An increase in indefinite lived intangible brand assets of $0.18 million; 2. A net deferred income tax asset of $0.06 million; and  3. A reduction to opening retained earnings of $0.12 million. 113 AnnuAl RepoRt 2011