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The policy has been applied on a retrospective basis and comparative information has been restated. The following changes to historical financial statements have been made to reflect the new policy:
---------------------------------------------------------------------------- AsFor the three months ended March 31, previously 2012 reported Adjustment Restated----------------------------------------------------------------------------Statement of Earnings (Loss) Production $ 171,670 $ 159 $ 171,829 Finance costs 1,542 31 1,573 Net loss (6,510) (190) (6,700)Statement of Comprehensive Income (Loss)Defined benefit plan actuarial losses (609) 190 (419)Other comprehensive income (loss) (2,575) 190 (2,385)----------------------------------------------------------------------------
There are no changes to previously issued Statements of Financial Position as a result of this change in accounting policy.
Effective January 1, 2013, IFRS 13, Fair Value Measurement, replaced the fair value measurement guidance contained in individual IFRSs with a single source of fair value measurement guidance and established new requirements for fair value measurements and disclosures. The new standard is applied prospectively and will require more extensive disclosure, but has no impact on the Company's financial information.
(b) New standards and interpretations not yet adopted:
The IASB periodically issues new standards and amendments or interpretations to existing standards. The following new pronouncement is one that the Company considers most significant and is not intended to be a complete list of new pronouncements that may affect the financial statements.
IFRS 9, Financial Instruments, replaces the multiple classification and measurement models in IAS 39, Financial Instruments: Recognition and Measurement, with a single model that has only two classification categories: amortized cost and fair value. This standard is in effect for accounting periods beginning on or after January 1, 2015, with earlier adoption permitted. The Company does not expect this standard to have a significant effect on its financial statements.
4. Acquisitions:
On March 1, 2013, the Company concluded the acquisition of Rayonier Inc.'s Wood Products Business in Georgia, U.S.A. ("U.S. Southeast"). The total consideration and purchase price allocation are preliminary and subject to adjustment in accordance with the Rayonier Asset Purchase Agreement. The purchase price has been allocated on a preliminary basis to the fair value of assets acquired and related liabilities arising from the transaction, based on management's best estimates and taking into account all available information to March 31, 2013. As updated information is available, further analysis may result in a refinement to the values attributable to assets and liabilities arising on the acquisition. Transaction costs of $783,000 related to the acquisition have been expensed in Selling and administration for the first quarter, 2013.
The assets acquired include manufacturing facilities and working capital. The acquisition has been accounted for using the acquisition method and the purchase price is allocated as follows:
----------------------------------------------------------------------------Net assets acquired: Current assets $ 10,733 Property, plant and equipment 76,513---------------------------------------------------------------------------- 87,246Current liabilities assumed (612)---------------------------------------------------------------------------- $ 86,634----------------------------------------------------------------------------Consideration financed as follows: Cash on hand $ 3,348 Working capital settlement to be paid 3,868 Operating Line 27,848 Revolving Term Line 51,570---------------------------------------------------------------------------- $ 86,634----------------------------------------------------------------------------
