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## IFRS 12 Disclosures of Interests in Other Entities 

In May 2011, the IASB issued IFRS 12, a new standard of comprehensive disclosure requirements for all forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities. As a result, the Company anticipates providing additional financial statement disclosures relating to interests in subsidiaries and joint arrangements. IFRS 12 is effective for annual periods beginning on or after January 1, 2013 and is to be applied retrospectively. Earlier application is permitted but must be applied simultaneously with IFRS 11 and IFRS 10. 

## IFRS 13 Fair Value Measurement 

In May 2011, the IASB issued IFRS 13 which defines fair value, sets out in a single IFRS a framework for measuring fair value and enhances disclosures about fair value measurements. IFRS 13 applies to fair value measurements required or permitted by other IFRSs, but does not (a) introduce any new requirements to measure an asset or a liability at fair value, (b) change what is measured at fair value in IFRSs, or (c) address how to present changes in fair value. The adoption of this new standard is expected to affect the Company’s fair value disclosures for financial instruments and asset impairment calculations. IFRS 13 is effective for annual periods beginning on or after January 1, 2013 and is to be applied prospectively. Earlier application is permitted. 

## Financial Instruments 

The Company has various financial assets that are classified for financial reporting purposes as available for sale, held at fair value through income or loss, or loans and receivable. Financial liabilities are classified as either held at fair value through income or loss or other liabilities. Initially, all financial assets and financial liabilities are recorded on the statement of financial position at fair value with subsequent measurement determined by the classification of each financial asset and liability. Trade and other receivables and trade and other payables are measured at amortized cost and their fair values are not materially different from their carrying amounts due to their short-term nature. 

The classification, carrying amounts and fair values of financial instruments held at December 31, 2012 and 2011 were as follows: 

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## Risk management and hedging activities 

The Company is exposed to changes in energy commodity prices, foreign currency exchange rates and interest rates. The Company uses various risk management techniques, including derivative instruments such as forward contracts, fixed-for-floating swaps, and option contracts, to reduce this exposure. These derivative instruments are recorded at fair value on the statement of financial position except for non-financial derivatives that are entered into and continue to be held for the purpose of receipt or delivery of a non-financial item in accordance with the Company’s expected purchase, sale or usage requirements. 

