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Unformatted text preview: signed and operated, can have inherent limitations. Therefore, even those systems determined to be
effective can provide only reasonable assurance that the objectives of the control system are met. 9. CRITICAL ACCOUNTING POLICIES, ESTIMATES AND ACCOUNTING CHANGES
Critical Accounting Policies and Estimates
Kinross’ accounting policies are described in Note 3 to the consolidated financial statements. The
preparation of the Company’s financial statements in accordance with IFRS requires management to make
judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Estimates and assumptions are continually
evaluated and are based on management’s experi ence and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Actual results could differ from these
The areas which require management to make significant judgments, estimates and assumptions in
determining carrying values include, but are not limited to: Mineral Reserves and Mineral Resources
Proven and probable mineral reserves are the economically mineable parts of the Company’s measured and
indicated mineral resources demonstrated by at least a preliminary feasibility study. The Company estimates
its proven and probable mineral reserves and measured and indicated and inferred mineral resources based
on information compiled by appropriately qualified persons. The information relating to the geological data
on the size, depth and shape of the ore body requires complex geological judgments to interpret the data.
The estimation of future cash flows related to proven and probable mineral reserves is based upon factors
such as estimates of foreign exchange rates, commodity prices, future capital requirements and production
costs along with geological assumptions and judgments made in estimating the size and grade of the ore
body. Changes in the proven and pro...
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- Spring '14