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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. REPORTING ENTITY AND DESCRIPTION OF THE BUSINESS
Suncor Energy Inc. (Suncor or the company) is an integrated energy company headquartered in Canada. Suncor’s
operations include oil sands development and upgrading, onshore and offshore oil and gas production, petroleum
refining, and product marketing primarily under the Petro-Canada brand. The consolidated financial statements of the
company comprise the company and its subsidiaries and the company’s interests in associates and joint arrangement
entities.
The address of the company’s registered office is 150 – 6th Avenue S.W., Calgary, Alberta, Canada, T2P 3E3.
2. BASIS OF PREPARATION
(a) Statement of Compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and Canadian generally accepted
accounting principles (GAAP) as contained within Part 1 of the Canadian Institute of Chartered Accountants Handbook.
The policies applied in these consolidated financial statements are based on IFRS issued and outstanding as at
February 28, 2014, the date the Board of Directors approved the consolidated financial statements.
(b) Basis of Measurement
The consolidated financial statements are prepared on a historical cost basis except as detailed in the accounting policies
disclosed in note 3. The accounting policies described in note 3 have been applied consistently to all periods presented in
these financial statements.
(c) Functional Currency and Presentation Currency
These consolidated financial statements are presented in Canadian dollars, which is the company’s functional currency.
(d) Use of Estimates and Judgment
The timely preparation of financial statements requires that management make estimates and assumptions and use
judgment. Accordingly, actual results may differ from estimated amounts as future confirming events occur. Significant
estimates and judgment used in the preparation of the consolidated financial statements are described in note 4.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Principles of Consolidation
The company consolidates its interest in entities it controls. Control comprises the power to govern an entity’s financial
and operating policies to obtain benefits from its activities, and is a matter of judgment. Suncor recognizes its share of
assets, liabilities, income and expenses, on a line-by-line basis, of its joint operations. Joint ventures are investments in
entities over which the company has significant influence and are accounted for using the equity method. All
intercompany balances and transactions are eliminated.
(b) Foreign Currency Translation
Functional currencies of the company’s individual entities are the currency of the primary economic environment in which
the entity operates. Transactions in foreign currencies are translated to the appropriate functional currency at foreign
exchange rates that approximate those on the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are translated to the appropriate functional currency at foreign exchange rates at the balance sheet
date. Foreign exchange differences arising on translation are recognized in earnings. Non-monetary assets that are
measured in a foreign currency at historical cost are translated using the exchange rate at the date of the transaction.
In preparing the company’s consolidated financial statements, the financial statements of each entity are translated into
Canadian dollars. The assets and liabilities of foreign operations are translated into Canadian dollars at exchange rates at
the balance sheet date. Revenues and expenses of foreign operations are translated into Canadian dollars using foreign
exchange rates that approximate those on the date of the underlying transaction. Foreign exchange differences are
recognized in Other Comprehensive Income.
SUNCOR ENERGY INC. ANNUAL REPORT 2013 91
