(g) Employee benefits Under IFRS, the Company was required to estimate a future value for certain employee benefits and present value this obligation. The impact arising from the change is summarized as follows: In accordance with IFRS, the Company recognized an increase of $317 of pension expense in selling, general and administrative expenses resulting from the change in the valuation of certain employee benefits, in the income statement for the year ended December 31, 2010. The Company also recorded the related tax effect of $87 as a decrease in deferred tax expense. Upon examining the impact of the opening IFRS adjustments to the valuation allowance, a further adjustment was required to the deferred tax balance to adjust for previously benefited losses. The impact arising from the change is summarized as follows: (h) Deferred taxes IFRS reclassifications (a) Previously, the Company presented other receivables together with prepaid expenses. The current presentation has other receivables presented with trade receivables, and prepaid expenses are shown separately as prepayment for current assets. (b) Previously, the Company presented other assets, which included investments and equity accounted investments, derivatives, licences and patents and other assets. Equity accounted investments are now shown separately, investments have been reclassified to other assets, derivatives instruments are shown separately and licences and patents are reflected in intangible assets. (c) Previously, the Company presented long-term employee benefits and other long-term liabilities within the line item other long- term items. Long-term employee benefits are now shown separately and other long-term liabilities are reflected in provisions and other long-term liabilities. CCL Industries Inc. 2011 Annual Report 89 Jan 1, 2010 Dec 31, 2010 Consolidated statement of financial position Decrease in deferred tax assets $ (1,373) $ (1,803) Decrease in retained earnings $ (1,373) $ (1,803) Jan 1, 2010 Dec 31, 2010 Consolidated statement of financial position Increase in employee benefits accrual $ (4,717) $ (5,034) Related tax effect 1,792 1,879 Decrease in retained earnings $ (2,925) $ (3,155)