3. Significant accounting policies(continued):  (o) Accounting standards and amendments issued but not yet adopted (continued): ( i ) On July 24, 2014 the IASB issued IFRS 9, Financial Instruments, and the IASB  subsequently published amendments to IFRS 9. IFRS 9 (2009) introduces new  requirements for the classification and measurement of financial assets. Under IFRS 9  (2009), financial assets are classified and measured based on the business model in which  they are held and the characteristics oftheir contractual cash flows. IFRS 9 (2010)  introduces additional changes relating to financial liabilities. IFRS 9 (2014) includes  finalized guidance on the classification and measurement of financial assets. The final  standard also amends the impairment model by introducing a new ‘expected credit loss’  model for calculating impairment, and new general hedge accounting requirements. The  IASB has deferred the mandatory effective date of the existing chapters of IFRS 9 to annual  periods beginning on or after January 1, 2018 and must be applied retrospectively with  some exemptions. Earlier application is permitted. ( ii ) On May 28, 2014, the IASB issued IFRS 15, Revenue from Contracts with Customers. IFRS 15 will replace IAS 18, Revenue. The standard co ntains a single model that applies  to contracts with customers and two approaches to recognizing revenue: at a point in time  or over time. The model features a contract -based, five-step analysis of transactions to  determine whether, how much and when reve nue is recognized. New estimates and  judgmental thresholds have been introduced, which may affect the amount and/or timing  of revenue recognized. The new standard is effective for annual periods beginning on or  after January 1, 2017. Earlier application  is permitted.  (p) Comparative figures: Comparative figures have been reclassified to conform to the financial statement presentation  adopted for the current year .  4. Royalty pool:  Annually on April 1, theRoyalty Pool is adjusted to include gross salesfrom new Franworks  restaurants that havebeen open for at least 365 consecutive days prior to April 1 , less gross sales  from any Franworks restaurants that have permanently closed during the preceding calendar year. In return for adding these net sales tothe Royalty Pool, Franworks receives the right to indirectly  acquire common shares of the Company through the issuance of Class B  LP Units (the “Additional  Entitlement”). The Additional Entitlement is determined based on 92.5% of the estimated net tax- adjusted royalty revenue added to the Royalty Pool, divided by the yield of the Company’s shares,  divided by the weighted average share price of the Company’s shares. Franworks receives 80%  of the estimated Additional Entitlement initially, with the balance received on April 1 of the  subsequent year when the actual full year performance of the new restaurants is known with  certainty. The Additional Entitlement is automatically  exchanged by Franworksinto common  shares ofDIV pursuant to the Exchange Agreement .  15  DIVERSIFIED ROYALTY CORP .  Notes toConsolidatedFinancial Statements  (Unaudited)  (Expressed in Canadian dollars)  Year ended December 31, 2014 