Commander’s assessment of its ability to sell the property for an amount exceeding the deferred costs, a provision is made for the impairment in value. 

Management’s estimates of exploration, operating, capital and reclamation costs are subject to certain risks and uncertainties which may affect the recoverability of mineral property costs. Although management has made its best estimate of these factors, it is possible that changes could occur in the near term that could adversely affect management’s estimate of the net cash flow to be generated from its properties. 

Another significant accounting estimate relates to accounting for share-based payments. Commander uses the Black-Scholes Option Pricing Model to estimate the fair value of share-based payments and warrants. Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of Commander’s stock options granted/vested during the period. 

## New Accounting Policies 

## Standards, Amendments and Interpretations Affecting the 2013 and Future Year-Ends 

Commander has not early adopted the following revised standards and is currently assessing the impact that these standards will have on the financial statements. 

i. IFRS 11, “Joint Arrangements”, provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form (as is currently the case). The standard addresses inconsistencies in the reporting of joint arrangements by requiring a single method to account for interests in jointly controlled entities. The standard is effective for annual periods beginning on or after January 1, 2013. 

ii. IFRS 12, “Disclosure of Interests in Other Entities”, is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities. The standard is effective for annual periods beginning on or after January 1, 2013. There will be no significant impact to the Company upon implementation of the issued standard. 

iii. IFRS 13, “Fair Value Measurement”, is a new comprehensive standard on measuring and disclosing fair value and will supersede all other fair value guidance in IFRS. The standard is effective for annual periods beginning on or after January 1, 2013. 

iv. IAS 1, “Presentation of Financial Statements”, is amended to revise the way other comprehensive income is presented. The amendments preserve the amendments made to IAS 1 in 2007 to require profit or loss and other comprehensive income to be presented together. The amendments require entities to group items presented in other comprehensive income based on whether they are potentially reclassifiable to profit or loss subsequently. The amendments also require tax associated with items presented before tax to be shown separately for each of the two groups of other comprehensive income items. 

v. IAS 27, “Separate Financial Statements”, is amended to deal with the requirements for separate financial statements, which have been carried over largely unamended from IAS 27, “Consolidated and Separate Financial Statements”. Requirements for consolidated financial statements are now contained in IFRS 10, “Consolidated Financial Statements”. This standard is effective for annual periods beginning on or after January 1, 2013. There will be no significant impact to the Company upon implementation of the issued standard. 

vi. IAS 28, “Investments in Associates and Joint Ventures”, is amended to prescribe the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. The standard defines “significant influence” and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment. This standard is effective for annual periods beginning on or after January 1, 2013. There will be no significant impact to the Company upon implementation of the issued standard. 

vii. IAS 32, “Financial Instruments: Presentation”, is amended to clarify certain aspects because of diversity in application of the requirements on offsetting, focused on four main areas: 1) the meaning of “currently as a legally enforceable right of set-off”, 2) the application of simultaneous realization and settlement, 3) the offsetting of collateral amounts and 4) the unit of account for applying the offsetting requirements. 

