EFTA01366992.pdf

Amendment #4 Page 563 of 868 ehlree nn., Deferred fax assets and liabilities The Company is a private), need company formed under South Afncan statues and taxed in terms of South African Tax Laws Deferred income taxes are recognized using the lability mettxxl Under the liability method, deferred income taxes are recogreed for the income consequences of temporary differences by appipng eructed tax rates appecable to future years to difference between the financial statement carrying amount and the tax bases of exeserg assets and lobar.. The effect on deferred income taxes of a change in tax taws or rates is recognized m income in the period that includes the enactment date. Where Mere re uncertainty in income taxes a benefit is recognized Wyatt snore lately den nil' that the tax position would be sustained +latex exanwebon, wet a tax examiret on being presumed to occur. The anoint recognized is the largest amount of tax benefit that s greater than 50% hkely of being realized on exammahon For tax positions not meet ng the 'more Stogy den not test no tax benefit is recorded. Based on the Company s analysis of the 'more likely than nor tax positions there has been no liability recorded for u -cerlan tax positions at 31 December 2014 and 2013 Tre Compares recognizes interest and penalties related to unrecognized tax tenet ts in interest and expenses, respectively The Company has no amounts accrued for interest or penaltes as of 31 December 2014 arc 2013 The Corrpeny e currently rot under audit by the South Afncan Revenue Service for any open tax years. Operating leases—lawny Leases in wracri a significant portion of nsks and rewards of ow nershp are retailed by the lesser are classified as cloning leases. Payments made under operating leases are recorced in general and adrninistratpte costs in We Statement of Income and Comprehensne Loss incurred $0 3M and NIL in 2014 and 2013 respectively Contingencies CondbanS, stustons or orcunstarces in the ordinary course of business may wise with possible gain or loss contingences that will uernately te resoNed when one or more future everts occur or fail to occur a some arrant within a range of loss appears at the time to be a tenet estimate tren any Other amount within the range, that amoral Wilt be accrued When no amount within Me range is a batter estmate Man any ocher amount however, the minimum amount n to range will be accrued We corihnuany evaluate uncertainties associated with ass contingencies and record a charge equal to at least the mnmum estrnated Lability for a Ices conongency wren both of the following conditions are met (0 int:Mahon available poor to issuance of the ?synod statements rotates that e s probable that an asset had been impaired or a (Lobate had been incurred at the date of the financial statements. and (a) the loss or range of loss can be reasonably estimated Legal costs are expensed when marred Can contingencies are rot recorded until realized or realizable Asset retirement obligation We operate under lease agreerneMsthat include a requirement for the removal d the wind energy systerrs al the end of the term of the agreement The fair value of the future retirement cost of the Carpany's assets is recorded as a liability on a discounted basis when unwed The initial recorded obligation s dscounted using the Company's credit-adjusted risk free-rate and is revered panodcaly for changes in the estimated future costs underlying the ctegaton Oar lime. the Lability is accreted to its expected false value The conestandng asset capitalized at inception is depreciated over the useful to of the facility to which the asset relates F-243 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058520 CONFIDENTIAL SDNY_GM_00204704 EFTA01366992