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foreign exchange gain of $235,000 that was recognized in the Consolidated Statement of Net Income and Comprehensive Income and has been classified on the Statement of Financial Position as an other current asset. 

Management considers the credit risk associated with accounts receivable to be generally low as substantially all counterparties are well established and financed oil and gas companies. AKITA has detailed credit-granting procedures and in certain situations may require customers to make advance payment prior to provision of services or take other measures to mitigate credit risk. Provisions have been estimated by management and included in the accounts to recognize potential bad debts. 

## Off Balance Sheet Transactions 

AKITA has not entered into any arrangements that involve off balance sheet transactions. 

## Related Party Transactions 

AKITA is affiliated with the ATCO Group of companies and with Spruce Meadows, an equestrian show jumping facility, through its majority shareholder. All related party transactions in 2012 and 2013 were made in the normal course of business with regular payment terms and have been recorded at the paid amounts. Operating purchases totalled $390,000 and included sponsorship and advertising ($325,000) and other miscellaneous purchases ($65,000). During 2013, the Company renewed its multi-year sponsorship and advertising contracts with Spruce Meadows. At December 31, 2013, the remaining commitment was $975,000. Costs incurred related to this contract during 2013 were $325,000 (2012 - $325,000). Costs and related services are consistent with parties dealing at arm’s length. In addition to operating purchases, the Company purchased well site trailers for its rig operations totalling $328,000. 

The Company incurred legal fees of $83,000 (December 31, 2012 - $62,000) during the year for services related to various legal matters with a law firm of which a director of the Company was a partner at December 31, 2013. At December 31, 2013, $1,000 (December 31, 2012 - $8,000) of this amount was included in accounts payable. 

The Company is related to its joint ventures. The accompanying table summarizes transactions and annual balances with the joint ventures. These transactions were made in the normal course of business with regular payment terms and have been recorded at the paid amounts. 

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