Page 106 - Suncor AR English

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

IFRS 13 Fair Value Measurement establishes a single source of guidance for most fair value measurements, clarifies the
definition of fair value, and enhances the disclosures on fair value measurement. The adoption of this standard had no

material impact on the company’s consolidated financial statements, but did result in increased disclosures on the fair
value measurement of the company’s financial instruments. Refer to note 27.

Recoverable Amount Disclosures for Non-Financial Assets

The company early adopted amendments to IAS 36 Impairment of Assets. The amendments clarified the recoverable
amount is disclosed only when an asset or CGU is impaired. The amended standard also requires expanded disclosure,

including the fair value measurement input level, for CGUs with goodwill and assets that are impaired based on fair value
less costs of disposal methodology. Refer to notes 10 and 20.

7. SEGMENTED INFORMATION

The company’s operating segments are reported based on the nature of their products and services and management
responsibility. The following summary describes the operations in each of the segments:

• Oil Sands includes the company’s operations in northeast Alberta to develop and produce synthetic crude oil and

related products, through the recovery and upgrading of bitumen from mining and in situ operations. This segment
also includes the company’s joint interest in Fort Hills (40.8%) and Joslyn North (36.75%) mining projects as well as its

12% ownership interest in the Syncrude oil sands mining and upgrading joint venture, located near Fort McMurray,
Alberta.

• Exploration and Production includes exploration and production of natural gas, crude oil and natural gas liquids in

Western Canada, offshore activity in East Coast Canada, with interests in the Hibernia, Terra Nova, White Rose and
Hebron oilfields, and the exploration and production of crude oil and natural gas in the United Kingdom (U.K.),

Norway, Libya and Syria. Due to unrest in Syria, the company has declared force majeure under its contractual
obligations, and Suncor’s operations in Syria have been suspended indefinitely.

• Refining and Marketing includes the refining of crude oil products, and the distribution and marketing of these and

other purchased products through retail stations located in Canada and the United States (U.S.), as well as a
lubricants plant located in Eastern Canada.

The company also reports activities not directly attributable to an operating segment under Corporate, Energy Trading and

Eliminations. This includes investments in renewable energy projects.

Intersegment sales of crude oil and natural gas are accounted for at market values and included, for segmented reporting,
in revenues of the segment making the transfer and expenses of the segment receiving the transfer. Intersegment

balances are eliminated on consolidation. Intersegment profit will not be eliminated until the related product has been
sold to third parties.

102 SUNCOR ENERGY INC. ANNUAL REPORT 2013