Notes to consolidated financial statements  September 27, 2014 and September 28, 2013 3. NEW ACCOUNTING POLICIES ADOPTED IN 2014  Employee  benefits  FINANCIAL POSITION ITEMS - 53 - (Millions of dollars, unless otherwise indicated) In  fiscal 2014, the  Corporation  adopted  the  new accounting policies  described  below.  IAS 19  “Employee Benefits” (IAS 19R) was amended. IAS 19R eliminates the corridor method for recognizing changes  (actuarial  gains and losses) in defined benefit obligations and plan assets and requires that they be recognized in other  comprehensive income when they occur . Application  of this amendment had no impact, as the Corporation has used  immediate recognition  of actuarial  gains and  losses in  other  comprehensive  income since  the transition toIFRS.  IAS 19R  eliminates the possibility of deferring recognition of past service costs related to unvested benefits and requires  their  immediate recognition in the income statement. Application of this amendment had no impact for the Corporation,  as  no  past  service costs have  been  deferred since the  transition  to IFRS.  Under  IAS 19, the employee benefit expense includes interest income corresponding to management’s expected return  on plan assets. IAS 19R eliminates the return on plan assets component and requires recognition of interest on the  dif ference  between defined benefit obligations and plan assets based on the discount rate for measuring obligations.  This  net interest  is  no longer  presented  as an  employee  benefit expense  but  as part of financial  costs.  IAS 19R also requires additional disclosures to present the characteristics of defined benefit plans which is presented  in note  25.  IAS  19R has been applied  retroactively  with  restatement  of prior periods’annual consolidated  financial statements.  The Corporation recorded the following adjustments: Increase (decrease) As at  September 28, 2013 As at  September 29, 2012 Defined benefit liabilities 10.3  16.8 Deferred tax assets 2.7  4.0 Deferred tax liabilities —  (0.4) Retained earnings (7.6 ) (12.4 ) INCOME AND COMPREHENSIVE INCOME ITEMS Increase (decrease) 2013 Cost of sales and operating expenses 15.9 Financial costs, net 8.3 Income taxes (6.5 ) Net earnings (17.7 ) Basic net earnings per share (0.19 ) Fully diluted net earnings per share (0.18 ) Basic net earnings per share from continuing operations  (0.19) Fully diluted net earnings per share from continuing operations  (0.18) Other comprehensive income, net of income taxes  22.5