IFRS 10 (revised) "Consolidated Financial Statements"
In October 2012, the IASB issued amendments to IFRS 10 to define investment entities, provide an exception to the consolidation of investment entities by a parent company, and prescribe fair value measurement to measure such entities. These amendments are effective for annual periods beginning on or after January 1, 2014. The Company is currently evaluating the impact of these amendments on its Condensed Consolidated Interim Financial Statements.
IFRS 12 (revised) "Disclosure of interests in other entities"
In October 2012, the IASB issued amendments to IFRS 12 to prescribe disclosures about significant judgments and assumptions used to determine whether an entity is an investment entity as well as other disclosures regarding the measurement of such entities. These amendments are effective for annual periods beginning on or after January 1, 2014. The Company is currently evaluating the impact of these amendments on its Condensed Consolidated Interim Financial Statements.
IAS 32 (revised) "Financial Instruments: Presentation"
In December 2011, the IASB issued amendments to IAS 32 to address inconsistencies when applying the offsetting criteria. These amendments clarify some of the criteria required to be met in order to permit the offsetting of financial assets and financial liabilities. These amendments are effective for annual periods beginning on or after January 1, 2014. The Company is currently evaluating the impact of these amendments to its Condensed Consolidated Interim Financial Statements.
INTERNAL CONTROLS OVER FINANCIAL REPORTING
TransGlobe's management designed and implemented internal controls over financial reporting, as defined under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, of the Canadian Securities Administrators and as defined in Rule 13a-15 under the US Securities Exchange Act of 1934. Internal controls over financial reporting is a process designed under the supervision of the Chief Executive Officer and the Chief Financial Officer and effected by the Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS, focusing in particular on controls over information contained in the annual and interim financial statements. Due to its inherent limitations, internal controls over financial reporting may not prevent or detect misstatements on a timely basis. A system of internal controls over financial reporting, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the internal controls over financial reporting are met. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.
No changes were made to the Company's internal control over financial reporting during the period ended March 31, 2013 that have materially affected, or are reasonably likely to materially affect, the internal controls over financial reporting.
Condensed Consolidated Interim Statements of Earnings and Comprehensive Income
(Unaudited - Expressed in thousands of U.S. Dollars, except per share amounts)
Three months ended March 31 2013 2012--------------------------------------------------------------------------------------------------------------------------------------------------------REVENUE Oil sales, net of royalties $ 79,366 $ 77,212 Derivative gain (loss) on commodity contracts - (124) Finance revenue 46 125---------------------------------------------------------------------------- 79,412 77,213----------------------------------------------------------------------------EXPENSES Production and operating 14,532 11,966 General and administrative 7,100 6,688 Foreign exchange (gain) loss (1,518) (372) Finance costs 2,202 6,206 Exploration 107 560 Depletion, depreciation and amortization 11,180 11,749 Unrealized (gain) loss on financial instruments (2,990) 7,840 Impairment of exploration and evaluation assets - 16---------------------------------------------------------------------------- 30,613 44,653----------------------------------------------------------------------------Earnings before income taxes 48,799 32,560----------------------------------------------------------------------------Income tax expense (recovery) - current 23,074 23,311 - deferred 847 (1,726)---------------------------------------------------------------------------- 23,921 21,585----------------------------------------------------------------------------NET EARNINGS AND COMPREHENSIVE INCOMEFOR THE PERIOD $ 24,878 $ 10,975--------------------------------------------------------------------------------------------------------------------------------------------------------Earnings per share Basic $ 0.34 $ 0.15 Diluted $ 0.26 $ 0.15--------------------------------------------------------------------------------------------------------------------------------------------------------
