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The following are the contractual maturities of financial liabilities, including associated interest payments on convertible debentures and excluding the impact of netting agreements at December 31, 2012:
Less Three than One to Two to to Four to one two three four fiveFinancial Liabilities year years years years yearsNon-derivative financial liabilities Accounts payable and accruals (1) $ 28,107 $ - $ - $ - $ - Bank loans - principal (2) 48,094 - - - - Convertible debentures - Interest (1) 5,523 7,085 7,085 5,210 1,667 - Principal - - - 50,000 46,000 -------------------------------------------Total $ 81,724 $ 7,085 $ 7,085 $ 55,210 $ 47,667----------------------------------------------------------------------------(1) Accounts payable and accruals includes $1.6 million of interest relating to convertible debentures. The total cash interest payable in less than one year on the convertible debentures is $7.1 million.(2) Assumes the credit facilities are not renewed on July 10, 2013.The following table shows the Company's accounts payable and accruals: Carrying Amount December December 31, 2012 31, 2011Trade payables $ 8,791 $ 24,188Accruals (1) 19,316 36,385 ------------------------- $ 28,107 $ 60,573----------------------------------------------------------------------------(1) Accruals include amounts for goods and services that have been received or supplied but have not been paid, invoiced or formally agreed with the supplier as of the reporting date. These accruals relate to both operating and capital activities.
(d) Market risk. Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates and interest rates will affect the Company's income or the value of the financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
The Company may use both financial derivatives and physical delivery sales contracts to manage market risks. All such transactions are conducted within risk management tolerances that are reviewed by the Board of Directors.
Currency risk. Prices for oil are determined in global markets and generally denominated in United States dollars. Natural gas prices obtained by the Company are influenced by both U.S. and Canadian demand and the corresponding North American supply, and recently, by imports of liquefied natural gas. The exchange rate effect cannot be quantified but generally an increase in the value of the Canadian dollar as compared to the U.S. dollar will reduce the prices received by the Company for its petroleum and natural gas sales.
There were no financial instruments denominated in U.S. dollars at December 31, 2012 or December 31, 2011.
