3.  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Notes to CoNsolidated FiNaNCial statemeNts (In thousands of dollars except as noted and per share amounts) (o) Income taxes (continued): (p) Earnings per share: (q) New standards and interpretations adopted: Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and  liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not  recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction  that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences  relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will  not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences  arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be  applied to temporary differences when they reverse, based on the laws that have been enacted or substantively  enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right  to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the  same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net  basis or their tax assets and liabilities will be realized simultaneously.   A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to  the extent that it is probable that future taxable profits will be available against which they can be utilized. In  addition, the effect on deferred tax assets or liabilities of a change in tax rates is recognized in profit or loss in  the period in which the enactment or substantive enactment takes place, except to the extent that it relates to an  item recognized either in other comprehensive income or directly in equity in the current or in a previous period.  Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probably  that the related tax benefit will be realized.  The Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is  calculated by dividing the profit or loss attributable to common shareholders of the Company by the weighted  average number of common shares outstanding during the period.   Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted  average number of common shares outstanding, for the effects of all dilutive potential common shares from the  conversion of the convertible debentures.  Amendments to IAS 1, Presentation of Financial Statements enhance the presentation of Other Comprehensive  Income (“OCI”) in the financial statements, primarily by requiring the components of OCI to be presented  separately for items that may be reclassified to the statement of earnings in the future from those that would never  be reclassified to the statement of earnings. The amendments are effective for annual periods beginning on or  after July 1, 2012.The adoption of the amendments had no impact on the consolidated financial statements. IAS 1,  Presentation of financial statements: 54 Rogers Sugar Inc.