Consolidation
In May 2011, the IASB issued IFRS 10, Consolidated Financial Statements; IFRS 11, Joint Arrangements, to replace International Accounting Standard ("IAS") 31, Interests in Joint Ventures; IFRS 12, Disclosure of Interests in Other Entities; and amendments to IAS 27, Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures.
Canadian Oil Sands has applied these new standards effective January 1, 2013 in accordance with the transitional provisions. IFRS 10, which establishes principles for the presentation and preparation of consolidated financial statements, has not impacted Canadian Oil Sands' financial statements or disclosures. IFRS 11 eliminates the accounting policy choice between proportionate consolidation and equity method accounting for joint ventures available under IAS 31 and, instead, mandates one of these two methodologies based on the economic substance of the joint arrangement. Canadian Oil Sands has determined that its investments in Syncrude and Syncrude Canada are considered joint operations under the new standard and continues to recognize its proportionate share of the assets, liabilities, revenues, expenses, and commitments of both. IFRS 12 requires entities to disclose information about the nature of their interests in joint ventures, which has resulted in additional disclosures in Note 1, Nature of Operations.
Fair Value Measurement
In May 2011, the IASB issued IFRS 13, Fair Value Measurements, which establishes a single source of guidance for fair value measurements and related disclosures. Canadian Oil Sands has applied this new standard effective January 1, 2013 in accordance with the transitional provisions, resulting in new fair value disclosures in Note 13, Financial Instruments.
Financial Instruments: Disclosures
In December 2011, the IASB issued amendments to IFRS 7, Financial Instruments: Disclosures, requiring entities to disclose information about the effect, or potential effect, of netting arrangements on an entity's financial position. Canadian Oil Sands has applied these amendments effective January 1, 2013 in accordance with their transitional provisions, resulting in additional disclosures in Note 13, Financial Instruments.
Production Stripping Costs
In October 2011, the IASB issued International Financial Reporting Interpretations Committee ("IFRIC") Interpretation 20, Stripping Costs in the Production Phase of a Surface Mine, which clarifies the accounting for costs associated with waste removal in surface mining during the production phase of a mine. Canadian Oil Sands has applied this new interpretation effective January 1, 2013 in accordance with the transitional provisions but there has been no impact on Canadian Oil Sands' financial statements or disclosures.
4) Property, Plant and Equipment, Net
Three Months Ended March 31, 2013 Upgrading Vehicles and Mining and($ millions) Extracting Equipment Equipment----------------------------------------------------------------------------CostBalance at January 1, 2013 $ 5,300 $ 1,397 $ 686Additions - - 2Change in asset retirement costs - - -Retirements (22) - (1)Reclassifications(1) 1 - -----------------------------------------------------------------------------Balance at March 31, 2013 $ 5,279 $ 1,397 $ 687----------------------------------------------------------------------------Accumulated depreciationBalance at January 1, 2013 $ 1,447 $ 539 $ 320Depreciation 63 16 13Retirements (22) - (1)Reclassifications(1) - - -----------------------------------------------------------------------------Balance at March 31, 2013 $ 1,488 $ 555 $ 332----------------------------------------------------------------------------Net book value at March 31, 2013 $ 3,791 $ 842 $ 355-------------------------------------------------------------------------------------------------------------------------------------------------------- Three Months Ended March 31, 2013 Asset Major Retirement Turnaround($ millions) Buildings Costs Costs----------------------------------------------------------------------------CostBalance at January 1, 2013 $ 324 $ 1,024 $ 166Additions - - 2Change in asset retirement costs - (62) -Retirements - - -Reclassifications(1) - - -----------------------------------------------------------------------------Balance at March 31, 2013 $ 324 $ 962 $ 168----------------------------------------------------------------------------Accumulated depreciationBalance at January 1, 2013 $ 107 $ 180 $ 73Depreciation 2 12 15Retirements - - -Reclassifications(1) - - -----------------------------------------------------------------------------Balance at March 31, 2013 $ 109 $ 192 $ 88----------------------------------------------------------------------------Net book value at March 31, 2013 $ 215 $ 770 $ 80-------------------------------------------------------------------------------------------------------------------------------------------------------- Three Months Ended March 31, 2013 Construction Mine($ millions) in Progress Development Total----------------------------------------------------------------------------CostBalance at January 1, 2013 $ 1,501 $ 392 $ 10,790Additions 264 - 268Change in asset retirement costs - - (62)Retirements - - (23)Reclassifications(1) (1) - -----------------------------------------------------------------------------Balance at March 31, 2013 $ 1,764 $ 392 $ 10,973----------------------------------------------------------------------------Accumulated depreciationBalance at January 1, 2013 $ - $ 121 $ 2,787Depreciation - 1 122Retirements - - (23)Reclassifications(1) - - -----------------------------------------------------------------------------Balance at March 31, 2013 $ - $ 122 $ 2,886----------------------------------------------------------------------------Net book value at March 31, 2013 $ 1,764 $ 270 $ 8,087--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Reclassifications are primarily transfers from construction in progress to other categories of property, plant and equipment when construction is completed and assets are available for use.
