Notes to the reconciliation of equity and comprehensive income IFRS adjustments (a) Business combinations (b) Currency translation differences (c) Transaction costs relating to financial liabilities CCL Industries Inc. 2011 Annual Report 87 In accordance with IFRS, the Company recognized an increase of $223 in finance costs in the income statement for the year ended December 31, 2010. The Company also recorded the related tax effect of $58 as a decrease in deferred tax expense. The impact arising from the change is summarized as follows: Under previous Canadian GAAP, the Company expensed transaction costs related to financial liabilities as incurred. IFRS requires the Company to include these costs as part of the financial liability. The Company previously recognized a net foreign exchange loss of $550 resulting from the repatriation of capital from foreign subsidiaries. In accordance with IFRS, the loss was reversed to accumulated other comprehensive loss as a payment of a dividend is not considered to be a disposal or partial disposal. The adjustment resulted in an increase in restructuring and other items of $196 and a decrease in selling, general and administrative expenses of $746 in the income statement for the year ended December 31, 2010. In accordance with IFRS 1, the Company has elected to deem all foreign currency translation differences that arose prior to the date of transition in respect of all foreign operations to be nil at the date of transition. The impact arising from the change is summarized as follows: The Company has elected under IFRS 1 not to apply IFRS 3, Business Combinations , (“IFRS 3”) retrospectively to business combinations that occurred prior to January 1, 2010 (the date of transition to IFRS). The Company has applied IFRS 3 to all business combinations that have occurred since January 1, 2010. The preceding are reconciliations of the financial statements previously presented under Canadian GAAP to the amended financial statements prepared under IFRS. Items identified as “IFRS adjustments” are required as the accounting treatment under Canadian GAAP differs from the treatment under IFRS. Items identified as “IFRS reclassifications” are solely reclassifications required to present the previous Canadian GAAP financial statements’ line items on a consistent basis with that of the IFRS presentation. Details on the nature of both types of changes are described below. Jan 1, 2010 Dec 31, 2010 Consolidated statement of financial position Decrease in accumulated other comprehensive loss due to foreign currency translation differences $ (137,129) $ (137,619) Offsetting effect in accumulated other comprehensive loss due to hedges of net investments in subsidiaries 48,348 49,388 Decrease in accumulated other comprehensive loss due to tax effect on hedges of net investments in subsidiaries (10,805) (10,805) Decrease in retained earnings $ (99,586) $ (99,036) Jan 1, 2010 Dec 31, 2010 Consolidated statement of financial position Decrease in long-term debt $ 1,177 $ 983 Decrease in current portion of long-term debt 89 — Related tax effect (330) (272) Other comprehensive income — 60 Increase in retained earnings $ 936 $ 771