income (loss) with a corresponding adjustment to contributed surplus. When options are exercised, the proceeds, together with the amounts recorded in contributed surplus, are recorded in share capital. 

## Financial Instruments 

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are de-recognized when the rights to receive cash flows from the instruments have expired, or when the Company has transferred substantially all risks and rewards of ownership. 

Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. 

## Trade receivables, loans and other receivables 

Trade receivables, loans and other receivables which are non-derivative financial assets that have fixed or determinable payment terms and are not quoted in an active market, are classified as loans and receivables. They are included in current assets, except for maturities greater than 12 months after the reporting date, which are classified as non-current assets. The Company’ s loans and receivables comprise accounts receivable relating to the Company’ s operations and capital programs. 

Loans and receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, net of any impairment. 

A provision for impairment of trade receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or significant delinquency in payments are considered indicators that a trade receivable is impaired. 

## Investments 

The Company’ s investments in publicly-listed companies are classified as available-for-sale investments. 

Investments in publicly-listed companies are recognized initially at fair value and subsequently are fair valued using the closing price on the reporting date of the financial statement. Gains or losses arising from changes in fair value are recognized in other comprehensive income (loss). 

Available-for-sale investments are classified as current assets, if management expects to dispose of the investments within twelve months. Such investments are deemed to be impaired when there is evidence of a significant and prolonged decline in value. When an available-for-sale investment is sold or deemed to be impaired, the accumulated gains or losses are transferred from accumulated other comprehensive income to the consolidated statement of income (loss). Subsequent gains are recorded in other comprehensive income (loss) while subsequent losses are recorded in the consolidated statement of income (loss). 

## Derivative contracts 

Derivative contracts may be used by the Company to manage exposure to market risks related to commodity prices, exchange rates and interest rates. Storm does not use derivative contracts for speculative purposes. The Company does not designate its derivative contracts as hedges, and as such does not apply hedge accounting. All derivative contracts are recorded on the consolidated statement of financial position at fair value. 

## Accounts payable and accrued liabilities 

Accounts payable and accrued liabilities are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers or under joint ventures or similar arrangements. Accounts payable are classified as current liabilities if payment is due within one year or less. 

## Borrowing Costs 

Borrowing costs attributable to the acquisition, construction or development of assets that require a considerable period of time to be ready for their intended use are added to the cost of those assets, until such time as the assets 

