For the items listed in Exhibit 1.1, for which items would the debt-to-equity ratio not change when a company switched from ASPE to IFRS?

Exhibit 1.1:

Some key different between IFRS and ASPE

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Accounting Item IFRS ASPE Very extensive for many items, especially financial instruments, post-employment benefits, and segment reporting Disclosure Moderate for financial instruments and post-employment benefits, and no disclosure for segments Discount future cash flows using Discount future cash flows using Impaired loans original discount rate current rate of interest Property, plant, and equipment Revaluation option Can be revalued to fair value with Must be measured at cost less adjustment to OCI and with deprecia- accumulated depreciation tion based on revalued amount Asset impairment Asset's carrying amount exceeds the higher of its (1) value in use (discounted expected future cash flows) and (2) fair value less costs of Test for impairment if indicator requires Asset's carrying amount exceeds the undiscounted expected future cash flows from the asset. If so, write asset down to lower of carrying disposal amount and fair value. Subsequent reversal of impairment loss Required if indicators change Not allowed Capitalize if certain criteria are met Development costs Choice between capitalize, if criteria met, or expense Post-employment benefits Actuarial gains/losses Recognize immediately in OCI Recognize immediately in net income Choice between taxes payable or Set up deferred income taxes as applicable Income taxes future income tax methods Choice between capitalize or expense Interest capitalization Capitalize if certain criteria are met Allocate between debt and equity Compound financial instrument Can choose to allocate a nominal amount to equity Preferred shares in tax planning Assess whether debt or equity Record as equity unless redemption demanded arrangement Record as equity Choice between recognizing as debt Value of conversion option for or equity convertible bonds