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Unformatted text preview: s not applied. (vi) Canadian dollar denominated common share purchase warrants liability The Company’s Canadian dollar denominated common share purchase warrants are considered derivative instruments and were measured at fair value on initial recognition and subsequently at each reporting date, with changes in fair value recognized in the consolidated statement of operations. For the year ended December 31, 2012, the Company recognized a gain of $18.4 million (year ended December 31, 2011 – a gain of $29.8 million) in the consolidated statement of operations. KINROSS GOLD 2012 ANNUAL REPORT FS41 (vii) Convertible senior notes - conversion option The Company’s option to settle its convertible senior notes in cash or shares upon conversion causes the conversion option to be considered an embedded derivative which is recognized at fair value on initial recognition and subsequently at each reporting date with changes in the fair value recognized in the consolidated statement of operations. For the year ended December 31, 2012, the Company recognized a gain of $2.6 million (year ended December 31, 2011 – a gain of $36.4 million) in the consolidated statement of operations. 12. CAPITAL AND FINANCIAL RISK MANAGEMENT The Company manages its capital to ensure that it will be able to continue to meet its financial and operational strategies and obligations, while maximizing the return to shareholders through the optimization of debt and equity financing. The Board of Directors has established a number of quantitative measures related to the management of capital. Management continuously monitors its capital position and periodically reports to the Board of Directors. The Company’s operations are sensitive to changes in commodity prices, foreign exchange and interest rates. The Company manages its exposure to changes in currency exchange rates, energy and interest rates by periodically entering into derivative financial instrument contracts in accordance with the formal risk management policy approved by the Company’s...
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This document was uploaded on 03/30/2014.

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