NOTES TO THE CONSOlIDATED FINANCIAl STATEmENTS 1. REPORTINg ENTITy 2. bASIS OFPREPARATION (a) Statement of compliance (b) baSiS of meaSurement 56 HIGH lIneR FooDS InCoRpoRAteD • derivative financial instruments are measured at fair value; • financial instruments at fair value through profit or loss are measured at fair value; • available-for-sale financial assets are measured at fair value; These consolidated financial statements have been prepared on the historical cost basis except for the following material items in the  statement of financial position: These financial statements were authorized for issue in accordance with a resolution of the directors on March 15, 2012.  High Liner’s consolidated financial statements were prepared in accordance with Canadian generally accepted accounting principles  (“Canadian GAAP” or “GAAP”) until January 1, 2011. Canadian GAAP differs in some areas from IFRS. In preparing High Liner’s 2011  consolidated financial statements, management has amended certain accounting, valuation and consolidation methods applied in  the Canadian GAAP financial statements to comply with IFRS. In preparing these consolidated financial statements in accordance  with IFRS 1, the Company has applied the mandatory exceptions and certain of the optional exemptions from full retrospective  application of IFRS and the comparative figures in respect of 2010 were restated to reflect these adjustments. Reconciliations and  descriptions of the effect of the transition from Canadian GAAP to IFRS on the Company’s equity and its net income and cash flows  are provided in  note 26 , Explanation of Transition to IFRS.  These consolidated financial statements have been prepared in accordance with IFRS 1, First-time Adoption of International Financial  Reporting Standards (“IFRS 1”) because they are the Company’s first full set of IFRS-compliant financial statements for the year ended  December 31, 2011. These financial statements have been prepared in accordance with those IFRS standards and IFRIC (International  Fanancial Reporting Interpretations Committee) interpretations issued and effective or issued and early adopted as at the time of  preparing these statements (March 2012). The policies set out below have been consistently applied to all the periods presented.  The Company’s financial statements for the fifty-two week period ended December 31, 2011 are the first annual financial statements  that comply with International Financial Reporting Standards (“IFRS”). High Liner’s transition date to IFRS was January 3, 2010  (“Transition date”). The Company prepared its opening IFRS balance sheet as at that date. The reporting date of these consolidated  financial statements is as at and for the fifty-two week period ended December 31, 2011. The Company’s IFRS adoption date was  January 2, 2011 (“Changeover date” or “adoption date”). High Liner Foods Incorporated (the “Company” or “High Liner”) is a company domiciled in Canada. The address of the Company’s  registered office is 100 Battery Point Road, P.O. Box 910, Lunenburg, Nova Scotia, B0J 2C0. The consolidated financial statements of the  Company as at and for the fifty-two week period ended December 31, 2011 comprise the non-consolidated Parent and its subsidiaries  (herein together referred to as the “Company” and individually as “Company subsidiaries”) and the Company’s interest in associates  and jointly controlled entities. The Company primarily is involved in the manufacturing and marketing of prepared and packaged  frozen seafood products. 