3.  Significant accounting policies (continued):  (g) Impairment  Annual Report  2013  (i) Non-derivative financial assets  (ii) Available-for-sale financial assets  A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there  is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has  occurred after the initial recognition of the asset, and that the loss event has a negative effect on the estimated future cash  flows of that asset that can be estimated reliably.  Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount  due to the Corporation on terms that the Corporation would not consider otherwise, indications that a debtor or issuer will enter  bankruptcy, economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition,  for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of  impairment.  Impairment losses on available-for-sale financial assets are recognized by reclassifying losses accumulated in fair value  reserve in equity, to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the difference between  the acquisition cost, net of any principal repayment and amortization, and the current fair value, less any impairment loss  recognized previously in profit or loss. Changes in impairment provisions attributable to application of the effective interest  method are reflected as a component of interest income. If, in a subsequent period, the fair value of an impaired available-for- sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was  recognized in profit or loss, then the impairment loss is reversed, with the amount of the reversal recognized in profit or loss.  However, any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognized in other  comprehensive income.  The grant-date fair value of share–based payment awards granted to employees is recognized as an employee expense, with a  corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount  recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions  are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the  related service and non-market performance conditions at the vesting date.  Finance costs comprise interest expense on borrowings and credit facility renewal fees. Borrowing costs that are not directly  attributable to the acquisition of a qualifying asset are recognized in profit or loss using the effective interest method.  (h) Share based payment transactions  (i) Finance costs  (j) Income tax  Income tax expense comprises current and deferred tax. Current and deferred tax is recognized in profit or loss except to the extent  that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.  Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or  substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also  includes any tax liability arising from the declaration of dividends.  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:  Notes to Financial Statements   temporary differences on 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;   temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that it is probable that  they will not reverse in the foreseeable future; and  taxable temporary differences arising on the initial recognition of goodwill.  49 