2011 Annual Illustrative IFRS Financial Statements - BDO Canada

Precious & Other Metals ExplorationNOTES TO THE FINANCIAL STATEMENTSExpressed in Canadian DollarsFor the year-ended December 31, 2011Reference:IFRS 1.24-25RECONCILIATION OF THE STATEMENT OF COMPREHENSIVE LOSS FOR THE YEAR-ENDED DECEMBER 31, 2010Effect ofSubnoteCanadianGAAP$’000transition toIFRS$’000IFRS$’000Interest and other income (iii) $ xxx $ xxx $ xxxDepreciation xxx xxxEmployee costs (ii) xxx xxx xxxFinance expense (i) xxx xxx xxxOther expenses xxx xxxTotal expenses $ xxx $ xxx $ xxxLoss before income tax $ xxx $ xxx $ xxxIncome tax expense (iv) xxx xxxLoss after income tax $ xxx $ xxx $ xxxOther comprehensive incomeFair value gain on available-for-sale investment xxx xxxIncome tax relating to fair value gain onavailable-for-sale investmentTotal other comprehensive loss $ xxx $ xxx $ xxx(xxx)(xxx)Total comprehensive loss for the year $ xxx $ xxx $ xxxLoss per common share, basic and diluted $ x.xx $ x.xx $ x.xxEXPLANATIONS FOR THE ADJ USTMENTS ARE AS F OLLOWS:i) Rehabilitation ProvisionUnder pre-changeover Canadian GAAP, rehabilitation provisions are measured incorporating marketassumptions and discount rates based on the entity’s credit-adjusted risk-free rate. Adjustments are madeto rehabilitation provisions for changes in the timing or amount of the cash flows and the unwinding of thediscount. However, changes in discount rates alone do not result in a re-measurement of the provision.Changes in estimates that decrease the liability are discounted using the discount rate applied upon initialrecognition of the liability, while changes that increase the liability are discounted using the currentdiscount rate.PAGE 33 OF 35BDO CANADA LLP