Page 104 - Suncor AR English

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

method of accounting rather than the proportionate consolidation method. This change did not have a material impact to

the consolidated financial statements, but did result in the netting of revenues and expenses for these entities into Other
Income, the netting of equity pick-up and cash distribution within Other in the Consolidated Statements of Cash Flows,

and the company’s net investment in these entities is now presented in Other Assets.

Impact of the application of IAS 19 Employee Benefits amendments
The revised standard resulted in changes to the calculation and presentation of pension interest cost, which is now

calculated on the net unfunded obligation, applying the discount rate used to measure the employee benefit obligation at
the beginning of the annual period. Previously, pension interest cost was net of interest income on plan assets (using the

expected return on plan assets) and interest expense on the plan obligation (using the discount rate). The net pension
interest expense was reclassified to Financing Expenses from Operating, Selling and General expense. The change to the

pension interest cost calculation also resulted in the refundable tax accounts (RTA) being present valued, resulting in an
immaterial adjustment to the Consolidated Balance Sheets noted below.

IFRS 11 and the amendments to IAS 19 have been applied retroactively, and the effects of the application of IFRS 11 and

IAS 19 amendments on the comparative periods are shown in the tables below.

Adjustments to Consolidated Statements of Comprehensive Income(1):

For the year ended December 31, 2012
($ millions, increase/(decrease)) IFRS 11 IAS 19 Total

Revenues and Other Income
.......................................................................................................................................................................................................................................................
Operating revenues, net of royalties (101) — (101)
.......................................................................................................................................................................................................................................................
Other income 11 — 11
.......................................................................................................................................................................................................................................................
Expenses
.......................................................................................................................................................................................................................................................
Purchases of crude oil and products (54) — (54)
.......................................................................................................................................................................................................................................................
Operating, selling and general (29) (22) (51)
.......................................................................................................................................................................................................................................................
Depreciation, depletion, amortization and impairment (4) — (4)
.......................................................................................................................................................................................................................................................
Financing expenses (3) 79 76
.......................................................................................................................................................................................................................................................
Income Taxes
.......................................................................................................................................................................................................................................................
Deferred — (14) (14)

Net Loss — (43) (43)
.......................................................................................................................................................................................................................................................
Actuarial gain on employee retirement benefit plans — 43 43

Total Comprehensive Income — — —

Per Common Share (dollars)
.......................................................................................................................................................................................................................................................
Basic — (0.03) (0.03)
.......................................................................................................................................................................................................................................................
Diluted — (0.03) (0.03)

(1) The impact of the IAS 19 adjustments for the year ended December 31, 2013 was an increase to Financing Expenses of $49 million with a
corresponding actuarial gain of $36 million, net of income taxes of $13 million, resulting in a $nil impact to the Consolidated Statements of
Comprehensive Income.

100 SUNCOR ENERGY INC. ANNUAL REPORT 2013