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Unformatted text preview: l Purpose Entities”, changes the definition of control which is the determining factor
in whether an entity should be consolidated. Under IFRS 10, an investor controls an investee when it is
exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect
those returns through its power over the investee. The Company expects no significant impact on the
Company’s consolidated financial statements upon adop tion of IFRS 10 on January 1, 2013.
IAS 27 “Separate Financial Statements (2011)” (“IAS 27 (2011)”) was reissued and now only contains
accounting and disclosure requirements for the preparation of separate financial statements, as
consolidation guidance is now contained within IFRS 10. The Company expects no impact on the Company’s
consolidated financial statements upon adoption of IAS 27 (2011) on January 1, 2013.
IFRS 11 “Joint Arrangements” (“IFRS 11”), which replaces IAS 31 “Interests in Joint Ventures” and SIC-13
“Jointly Controlled Entities – Non-monetary Contributions by Venturers”, requires a venturer to classify its
interest in a joint arrangement as either a joint operation or a joint venture. For a joint operation, the joint
operator will recognize its assets, liabilities, revenue, and expenses, and/or its relative share thereof. For a
joint venture, the joint venturer will account for its interest in the venture’s net assets using the equity
method of accounting.
IAS 28 “Investments in Associates and Joint Ventures (2011)” (“IAS 28 (2011)”) was amended as a
consequence of the issuance of IFRS 11. In addition to prescribing the accounting for investments in
associates, it now also addresses joint ventures that are to be accounted for by the equity method. The
application of the equity method has not changed as a result of this amendment.
The Company adopted IFRS 11 and IAS 28 (2011) on January 1, 2013. As a result of adoption, the Company’s
consolidated financial statements will be impacted as follows: The Company will classify its interest in Round Mountain as a joint operation, and will continue to
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This document was uploaded on 03/30/2014.
- Spring '14