notes to the Consolidated Financial Statements (cont’d) Also in accordance with IFRS’s definition of onerous contracts, we were required to derecognize the liability for our Burin production  shortfall payments to the Province of Newfoundland of $1.8 million of which $1.6 million had been included in the net assets  acquired under Canadian GAAP. Under IFRS, the production shortfall payments will be recognized in the accounting period of a year  in which it would be no longer possible to assign sufficient production to our Burin location to meet the production requirements. As a result of the Company’s acquisition of FPI under Canadian GAAP, we were able to recognize the benefit of previously  unrecognized tax loss carry-forwards. The future tax asset offset the future tax liabilities generated from the acquisition of the FPI  assets. The recognition of the future tax asset reduced the amount of goodwill that would have otherwise been recorded. Under IFRS,  however, this is not permitted, and the recognition of a deferred income tax asset by the acquirer resulting from a business  combination must be accounted for as income, and not part of the accounting of that business combination. As a result, the  Company was required to reverse the entry previously taken, which increased the Company’s goodwill balance and opening retained  earnings by $14.1 million. The restatement of our purchase price allocation and the reversal of our Burin liability resulted in the following adjustments at the  transition date for the Company: The Company did not recognize any significant changes in its accounting policies for business combinations as a result of the  Company’s transition to IFRS due to the Company’s early adoption of CICA 1582, Business Combinations, under Canadian GAAP for  acquisitions subsequent to the effective date January 3, 2010, which is substantially converged with IFRS 3 (2008). The impact of restating our purchase price allocation and the reversal of the Burin liability impacted our subsequent reporting  periods, in addition to the transition entries noted above, as follows: As at and for the fifty-two weeks ended January 1, 2011, the Company recognized: As noted in the section entitled “IFRS Exemption Options,” the Company has elected to deem all foreign currency translation  differences that arose prior to the transition date in respect of all foreign operations to be nil at the date of transition. The cumulative  translation adjustment balance, net of tax, under Canadian GAAP as of January 3, 2010 of $14.5 million was recognized as an  adjustment to retained earnings from Accumulated Other Comprehensive Income. The application of the exemption had no impact  on net equity. There was no impact on the foreign currency cumulative translation account in subsequent periods. As stated in the section entitled “IFRS 1 Exemptions”, the Company elected to recognize all cumulative actuarial gains and losses that  existed at the transition date in opening retained earnings for all of its employee benefit plans, a transition approach referred to as a  “fresh start”. At the date of transition, the Company recognized the following adjustments with respect to the election: As at the transition date: 109 AnnuAl RepoRt 2011 4. A reduction to opening retained earnings of $7.1 million. 3. A net deferred income tax asset of $2.6 million; and  2. A reduction to employee future benefit assets of $7.3 million; 1. An increase to employee future benefit liabilities of $2.4 million; 2. A decrease in short-term interest expense (finance costs) of $0.08 million and increased cost of sales of $0.6 million with a net  increase to deferred income taxes of $0.2 million. 1. An increase in accounts payable by $0.03 million and long-term liabilities by $0.06 million to reverse the Canadian GAAP  accretion; and reduced long-term liabilities by $0.6 million to reflect the current year expense. 1. An increase to total opening retained earnings of $10.9 million; 2. A decrease to accounts payable of $0.6 million and other long-term liabilities of $1.2 million; 3. A reduction to share capital of $2.7 million; 4. The recognition of a net deferred income tax liability of $1.0 million; and  5. A net increase to goodwill of $7.3 million in Canadian dollars; a. A reduction to the Canadian reporting unit carrying value of $3.1 million in Canadian dollars; and  b. An increase to the U.S. reporting unit carrying value of $9.9 million in U.S. dollars. (ii) Foreign currency cumulative translation adjustment (iii) Employee future benefit plans