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The Company also designates as cash flow hedges forward exchange contracts to sell euro at a fixed USD exchange rate. At March 31, 2013, the Company had outstanding forward exchange contracts designated as cash flow hedges to sell a notional amount of EUR17.2 million in exchange for US dollars and these euro contracts had a positive fair value of $0.8 million (2012 - negative fair value of $0.2 million) recorded in other assets. Changes in fair value of derivative financial instruments designated as cash flow hedges have been recorded in other comprehensive income.
The carrying values of the Company's financial instruments approximate their fair values, except as follows:
March 31, 2013 -------------------------- CarryingAs at Value Fair Value--------------------------------------------------------------------------------------------------------------------------------------------------------Long-term debt $ 1,186,887 $ 1,240,180----------------------------------------------------------------------------
There is no publicly traded market for the limited recourse debt facilities, the fair value of which is estimated by reference to current market prices for debt securities with similar terms and characteristics. The fair value of the unsecured notes was calculated by reference to a limited number of small transactions in March 2013. The fair value of the Company's unsecured notes will fluctuate until maturity.
11. Adoption of New Accounting Standards:
a) Effective January 1, 2013, the Company has adopted the following new IASB accounting standards related to consolidation and joint arrangements: IFRS 10, Consolidated Financial Statements; IFRS 11, Joint Arrangements; and IFRS 12, Disclosure of Interests in Other Entities.
As a result of the adoption of these new standards, the Company's 63.1% interest in the Atlas entity is accounted for using the equity method. The Company has restated its Consolidated Statement of Financial Position as at January 1, 2012 and December 31, 2012 and its Consolidated Statement of Income and Comprehensive Income for the three months ended March 31, 2012. Reconciliations of the restatements of the Consolidated Statement of Financial Position as at December 31, 2012 and Consolidated Statement of Income and Comprehensive Income for the three months ended March 31, 2012 are as follows:
Consolidated Statement of Financial PositionAs at December 31, 2012 As Restatement Previously of Atlas to Stated Equity Method As Adjusted--------------------------------------------------------------------------------------------------------------------------------------------------------ASSETSCurrent assets: Cash and cash equivalents $ 745,610 $ (18,225) $ 727,385 Trade and other receivables 429,203 (12,047) 417,156 Inventories 253,023 3,317 256,340 Prepaid expenses 28,314 (2,726) 25,588---------------------------------------------------------------------------- 1,456,150 (29,681) 1,426,469Non-current assets: Property, plant and equipment 2,014,748 (251,875) 1,762,873 Investment in associate - 184,665 184,665 Other assets 73,724 (5,170) 68,554---------------------------------------------------------------------------- 2,088,472 (72,380) 2,016,092---------------------------------------------------------------------------- $3,544,622 $ (102,061) $3,442,561--------------------------------------------------------------------------------------------------------------------------------------------------------LIABILITIES AND EQUITYCurrent liabilities: Trade, other payables and accrued liabilities $ 353,744 $ 23,922 $ 377,666 Current maturities on long-term debt 53,334 (15,044) 38,290 Current maturities on other long- term liabilities 33,903 (3,581) 30,322---------------------------------------------------------------------------- 440,981 5,297 446,278Non-current liabilities: Long-term debt 1,191,891 (35,810) 1,156,081 Other long-term liabilities 242,435 (42,223) 200,212 Deferred income tax liabilities 191,578 (29,325) 162,253---------------------------------------------------------------------------- 1,625,904 (107,358) 1,518,546Equity: Capital stock 481,779 - 481,779 Contributed surplus 15,481 - 15,481 Retained earnings 805,661 - 805,661 Accumulated other comprehensive loss (13,045) - (13,045)---------------------------------------------------------------------------- Shareholders' equity 1,289,876 - 1,289,876 Non-controlling interests 187,861 - 187,861---------------------------------------------------------------------------- Total equity 1,477,737 - 1,477,737---------------------------------------------------------------------------- $3,544,622 $ (102,061) $3,442,561--------------------------------------------------------------------------------------------------------------------------------------------------------
