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18. SUPPLEMENTAL CASH FLOW INFORMATION
Changes in non-cash working capital is comprised of:
December December 31, 2012 31, 2011Source (use) of cash Accounts receivable and accruals $ 4,391 $ 6,726 Prepaid expenses and deposits 538 726 Accounts payable and accruals (32,466) $ 13,711 -------------------------- $ (27,537) $ 21,163----------------------------------------------------------------------------Related to operating activities $ 704 $ 94Related to financing activities $ (175) $ (324)Related to investing activities $ (28,066) $ 21,393----------------------------------------------------------------------------
19. FINANCIAL RISK MANAGEMENT
(a) Overview. The Company's activities expose it to a variety of financial risks that arise as a result of its exploration, development, production, and financing activities such as:
-- credit risk;-- liquidity risk; and-- market risk.
This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and processes for measuring and managing risk, and the Company's management of capital. Further quantitative disclosures are included throughout these consolidated financial statements.
The Board of Directors oversees management's establishment and execution of the Company's risk management framework. Management has implemented and monitors compliance with risk management policies. The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Company's activities.
(b) Credit risk. Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from joint venture partners and oil and natural gas customers. The maximum exposure to credit risk is as follows:
December December 31, 2012 31, 2011Cash and cash equivalents $ 1 $ 1Accounts receivable and accruals 9,881 14,272 ------------------------- $ 9,882 $ 14,273----------------------------------------------------------------------------
Accounts receivable and accruals. All of the Company's operations are conducted in Canada. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer or joint venture partner.
A substantial portion of the Company's accounts receivable are with customers in the oil and gas industry and are subject to normal industry credit risks. Receivables from oil and natural gas customers are normally collected on the 25th day of the month following the related sale of oil and gas production. The Company's policy to mitigate credit risk associated with these balances is to establish commercial relationships with large customers. The Company historically has not experienced any significant collection issues with its oil and natural gas customers. Receivables from joint venture partners are typically collected within ninety days.
