Total Debt – A measure indicating the financial indebtedness of the Company. It is defined as current debt, including bank advances, plus long-term debt. The following table reconciles total debt used in the total debt measure to IFRS measures reported in the consolidated statement of financial position as at the periods ended as indicated. Total Debt to Total Book Capitalization – A measure that indicates the financial leverage of the Company. It measures the relative use of debt versus equity in the book capital of the Company. Total debt to total book capitalization is defined as total debt (see definition above) divided by total debt plus shareholders’ equity, expressed as a percentage. The following table reconciles the total debt to total book capitalization measure to IFRS measures reported in the consolidated statement of financial position as at the periods ended as indicated. The above analysis and discussion of the Company’s financial condition and results of operation are based on its consolidated financial statements prepared in accordance with IFRS. CCL’s transition date to IFRS was January 1, 2010, and the Company’s financial statements for the year ended December 31, 2011, are the first annual financial statements prepared in accordance with IFRS. Comparative information for the 2010 year has been restated, and various reconciliations between the amounts reported under previous Canadian generally accepted accounting principles (“previous GAAP”) and IFRS are set out in note 31 to the consolidated financial statements, together with explanatory notes and details of transition exemptions available that were applied. A summary of the Company’s significant accounting policies is set out in note 3 of the consolidated financial statements. A number of new or revised accounting standards have recently been issued by the International Accounting Standards Board (“IASB”), but are not yet effective. These standards have not been applied in preparing these consolidated financial statements. The Company is currently evaluating the impact of these standards on its consolidated financial statements. IFRS 9, Financial Instruments (“IFRS 9”) 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 annual periods beginning on or after January 1, 2015, with earlier adoption permitted. CCL Industries Inc. 2011 Annual Report 37 Recently Issued New Accounting Standards, Not Yet Effective Accounting Policies B) Accounting Policies and New Standards Total Debt to Total Book Capitalization Total debt At December 31 2011 2010 Current debt, including bank advances $ 19.8 $ 76.1 Plus: Long-term debt 334.2 345.8 Total debt $ 354.0 $ 421.9 At December 31 2011 2010 Total debt (see above table) $ 354.0 $ 421.9 Shareholders’ equity $ 816.9 $ 769.3 Total debt to total book capitalization 30.2% 35.4%