Page 66 - Suncor AR English

ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES

measurement level input. See note 27 to the audited available on the current date and cannot be contingent on

Consolidated Financial Statements for the year ended a future event. Retrospective application of amendments to
December 31, 2013.
IAS 32 are effective for annual periods beginning on or

The effects of the application of IFRS 11 and the IAS 19 after January 1, 2014 with earlier application permitted.
The adoption of this amended standard is not expected to
amendment to consolidated net earnings, operating
earnings and cash flow from operations for the twelve have a material impact on the company’s financial
statements.
months ended December 31, 2012 are shown in the table
below and reflect the application of relevant transitional
Levies
provisions.
In May 2013, the IASB issued International Financial
Reporting Interpretation Committee (IFRIC) 21 Levies. This
Year ended
clarifies that an entity recognizes a liability for a levy when December 31,
the activity that triggers payment occurs.
2012
($ millions)

For a levy that is triggered upon reaching a minimum Net earnings before accounting
changes
2 783
threshold, the interpretation clarifies that no liability should ........................................................................................................................
be anticipated before the minimum threshold is reached. Adjustments to net earnings:
........................................................................................................................
Retrospective application of this interpretation is effective Recognition of interest costs on net
for annual periods beginning on or after January 1, 2014, unfunded obligation (IAS 19)
(43)

with earlier application permitted. The company is Net earnings after accounting changes
2 740
assessing the impact of this interpretation on royalties and
property taxes.
Operating earnings before accounting
changes
4 890
........................................................................................................................
Adjustments to operating earnings:
Financial Instruments: Recognition and Measurement
........................................................................................................................
In November 2009, as part of the IASB project to replace Recognition of interest costs on net

IAS 39 Financial Instruments: Recognition and unfunded obligation (IAS 19)
(43)
Measurement, the IASB issued the first phase of IFRS 9
Financial Instruments. It contained requirements for the Operating earnings after accounting
changes
4 847
classification and measurement of financial assets, and was
updated in October 2010 to incorporate financial liabilities. Cash flow from operations before
accounting changes
9 745
In November 2013, the IASB issued amendments to include ........................................................................................................................
the new general hedge accounting model and to postpone Adjustments to cash flow from

the mandatory effective date of this standard indefinitely. operations:
........................................................................................................................
The full impact of this standard will not be known until the
Proportionate consolidation to
amendments addressing impairments, classification and equity accounting (IFRS 11) (5)
measurement have been completed. When these projects ........................................................................................................................
Recognition of interest costs on net
are completed, an effective date will be added by the IASB.
unfunded obligation (IAS 19)
(7)

Cash flow from operations after
Critical Accounting Estimates and Judgments
The preparation of financial statements in accordance with accounting changes
9 733

GAAP requires management to make estimates, judgments
and assumptions that affect reported assets, liabilities, Recently Announced Accounting Standards
The standards and interpretations that are issued but not
revenues, expenses, gains, losses, and disclosures of
contingencies. These estimates and judgments are subject yet effective up to the date of issuance of the company’s
financial statements, and may have an impact on the
to change based on experience and new information.
disclosures and financial position of the company, are
Critical accounting estimates are those estimates that disclosed below. The company intends to adopt these
require management to make assumptions about matters
standards and interpretations, if applicable, when they
that are highly uncertain at the time the estimate is made, become effective.
and those estimates where changes in critical assumptions

that are within a range of reasonably possible outcomes Offsetting Financial Assets and Financial Liabilities
would have a material impact on the company’s financial
In December 2011, the IASB issued amendments to IAS 32
condition, changes in financial condition or financial Financial Instruments: Presentation to clarify the
performance.
requirements for offsetting financial assets and liabilities.
The amendments clarify that the right to offset must be

62 SUNCOR ENERGY INC. ANNUAL REPORT 2013