SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

2.SIGNIFICANT ACCOUNTING POLICIES

All accounting policies applicable to the Successor Company are the same as those described in note 2 of audited consolidated financial statements for the year ended December 31, 2011 included in the 2011 Annual Report.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reported periods. Estimates are used when accounting for the collectability of receivables, valuation of deferred tax assets, provisions for inventory obsolescence, accounting for manufacturing variances, determining stock-based compensation expense and reviewing long-lived assets for impairment. Actual results may differ materially from these estimates.

(a) Recently adopted accounting policies

No new accounting pronouncements were adopted by the Successor Company during three months ended June 30, 2012. For a summary of accounting pronouncements adopted by the Successor Company during the three months ended March 31, 2012, refer to the unaudited consolidated financial statements filed with the SEC on Form 10-Q on May 15, 2012.

(b) Future Accounting Pronouncements

As at the date of this assessment, no additional future accounting pronouncements were identified, which are expected to affect the Successor Company’s future consolidated financial statements beyond June 30, 2012.