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Unformatted text preview: ol over those policies. In general, significant influence is presumed to exist when the
Company has between 20% and 50% of voting power. Significant influence may also be evidenced by
factors such as the Company’s representation on the board of directors, participation in policy -making of
the investee, material transactions with the investee, interchange of managerial personnel, or the provision
of essential technical information. Associates are equity accounted for from the effective date of
commencement of significant influence to the date that the company ceases to have significant influence.
Results of associates are equity accounted for using the results of their most recent audited annual financial
statements or interim financial statements, as applicable. Losses from associates are recognized in the
consolidated financial statements until the interest in the associate is written down to nil. Thereafter,
losses are recognized only to the extent that the Company is committed to providing financial support to
The carrying value of the investment in an associate represents the cost of the investment, including
goodwill, a share of the post-acquisition retained earnings and losses, accumulated other comprehensive
income (“AOCI”) and any impairment losses. At the end of each reporting period, th e Company assesses
whether there is any objective evidence that its investments in associates are impaired.
ii. Functional and presentation currency
The functional and presentation currency of the Company is the United States dollar.
Transactions denominated in foreign currencies are translated into the United States dollar as follows: Non-monetary assets and liabilities are translated at historical exchange rates prevailing at each transaction
date; FS10 Monetary assets and liabilities are translated at the rates of exchange at the consolidated balance sheet
date; Revenue and expenses are translated at the exchange rate at the date of the transaction, except
depreciation, depletion and amortization, which are translated at the rates of exchange applicable to the
related assets, and share-based compensation expense, which is translated at the rates of exchange
applicable at the date of grant of the share-based compensation; and KINROSS GOLD 2012 ANNUAL REPORT Exchange gains and losses on translation are included in earnings. When the gain or loss on certain non-monetary items, such as long-term investments classified as
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This document was uploaded on 03/30/2014.
- Spring '14