(Expressed in US dollars) Years ended December 31, 2012 and 2011 

## 2. BASIS OF PRESENTATION  (Continued) 

## c) Adoption of New and Revised Standards and Interpretations  (Continued) 

## (vi) IFRS 11 Joint Arrangements 

Replaces IAS 31 Interests in Joint Ventures . Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement. 

Joint arrangements are either joint operations or joint ventures: 

 A joint operation  is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognize their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share ofany such items arising jointly) 

 A joint venture  is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures  (2011). Unlike IAS 31, the use of “proportionate consolidation” to account for joint ventures is not permitted. 

Applicable to annual reporting periods beginning on or after January  1, 2013. If early-adopted, must be adopted together with IFRS 10, IFRS 12, IAS 27 (2011) and IAS 28 (2011). 

## (vii) IFRS 12 Disclosure of Interests in Other Entities 

Requires the extensive di sclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. 

In high-level terms, the required disclosures are grouped into the following broad categories: 

 Significant judgments and assumptions – such as how control, joint control, significant influence has been determined 

 Interests in subsidiaries – including details of the structure of the group, risks associated with structured entities, changes in control, and so on 

 Interests in joint arrangements and associates – the nature, extent and financial effects of interests in joint arrangements and associates (in cluding names, details and summarized financial information) 

 Interests in unconsolidated structured entities – information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of,and changes in, the risks associated with its interests in unconsolidated structured entities . 

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the ex tensive disclosures required. 

Applicable to annual reporting periods beginning on or after January  1, 2013. If early-adopted, must be adopted together with IFRS 10, IFRS 11, IAS 27 (2011) and IAS 28 (2011). 

