NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except share and per share information) The Company presents basic and diluted earnings per share (“EPS”) data for its Class B shares. Basic EPS is calculated by dividing the profit or loss attributable to shareholders of the Company by the weighted average number of shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to shareholders and the weighted average number of shares outstanding for the effects of all potentially dilutive shares, which primarily comprise share options granted to employees. A segment is a distinguishable component of the Company that is engaged either in providing related products (business segment), or in providing products within a particular economic environment (geographical segment), which is subject to risks and returns that are different from those of other segments. Segment information is presented in respect of the Company’s business and geographical segments. The Company’s primary format for segment reporting is based on business segments. The business segments are determined based on the Company’s management and internal reporting structure. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly other investments and related revenue, loans and borrowings and related expenses, corporate assets (primarily the Company’s headquarters) and head office expenses. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets, other than goodwill. IFRS 9, Financial Instruments (“IFRS 9”) was issued by the IASB in October 2010 and will replace IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”). IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. Mandatory Effective Date of IFRS 9 and Transition Disclosures, issued in December 2011, deferred the effective date to periods beginning on or after January 1, 2015, with earlier adoption permitted. This standard has not been applied in preparing these consolidated financial statements. The Company is currently evaluating the impact of IFRS 9 on its consolidated financial statements. IFRS 10, ConsolidatedFinancialStatements (“IFRS 10”) was issued by the IASB in May 2011 and will replace SIC-12, Consolidation- Special Purpose Entities and IAS 27, Consolidated and Separate Financial Statements. IFRS 10 establishes principles for the presentation and preparation of consolidated financial statements when an entity controls one or more entities. IFRS 10 is effective for periods beginning on or after January 1, 2013, and has not been applied in preparing these consolidated financial statements. The Company is currently evaluating the impact of IFRS 10 on its consolidated financial statements. IFRS 11, Joint Arrangements (“IFRS 11”) was issued by the IASB in May 2011 and will replace guidance in IAS 31, Interests in Joint Ventures. IFRS 11 provides focus on the rights and obligations of the joint arrangement, rather than its legal form in the current standard. IFRS 11 also addresses inconsistencies in the reporting of joint arrangements by requiring a single method to account for interest in jointly controlled entities. IFRS 11 is effective for periods beginning on or after January 1, 2013, and has not been applied in preparing these consolidated financial statements. The Company is currently evaluating the impact of IFRS 11 on its consolidated financial statements. IFRS 12, Disclosure of Interests in Other Entities (“IFRS 12”) was issued by the IASB in May 2011 and establishes new and comprehensive disclosure requirements for all forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities. This new standard is effective for periods beginning on or after January 1, 2013. The Company is assessing the impact of this new standard on its consolidated financial statements. IFRS 13, Fair Value Measurement (“IFRS 13”) was issued by the IASB in May 2011 and replaces the fair value guidance that is currently contained within individual IFRS with a single source of fair value measurement guidance. IFRS 13 is effective for periods beginning on or after January 1, 2013, and has not been applied in preparing these consolidated financial statements. The Company is currently evaluating the impact of IFRS 13 on its consolidated financial statements. IAS 1, Presentation of Financial Statements (“IAS 1”) was amended by the IASB in June 2011. This amendment retains the ‘one or two statement’ approach to presenting the statements of income and comprehensive income at the option of the entity and only 56 CCL Industries Inc. 2011 Annual Report (p) Earnings per share (q) Segment reporting (r) New standards and interpretations not yet effective