EFTA01367197.pdf

Amendment #4 Page 768 of 868 Annual improvements 201I-20,3 Cycle In the 2011-2O13 annual improvements cycle. tie IASEI issued lots amendments to lots standards, which included an amendment to IFRS1 FIISMON9 Maar, of International Finance.' Reporting standards rne amendment to FRS 'I is effedwe invnediateif and. thus for periods beginning at 2014, and denies in the Bass for Conclusions not an entity may choose to apply galley a current standard or a new standard that is not yet menclatay. but permits arty aught: ion, provided either standard s appeed consistendi throughtxt the periods presented in the May's first FRS financial statements 4. Summary of significant accounting policies 4.1 Currency and foreign currency transactions 4.1.1 Functional and presentation currency of the financial statements The Company adopted the US dollar (USS or S) as The functional and presentation currency since it batter Wan the events sit transactions performed by trio formerly Adoption of the US dollar as functional currency was Cased on the following facts income from energy sales is generated n dollars debt obligations are denominated in dollars. capital oyInbutions are made in dollars and certain operating costs and expenses are also incurred in that curency. I nbrmatcn relating to exchange regJal ens and rates a included n Note 20 Considering that the Company s accosting records are kept in Honduran lempras, and that the US dollar was adopted as the functional annoy, assets and liabilities denomnated in foreign currency were translated into the financial statements functional currency using the exchange rate ruling on the date d the statement d (mantel position Non.rnoretary :terns measured on a hstoncal cost basis were converted on the date of the statement of financial position using the exchange rate ruling on the drat transactor, date Income and expenses are converted at the exchange rate in effect on the transaction date. 4.1.2 Transactions In foreign currency transactions n forego currency, any currency ether than the furchorel currency, are recorded at the exchange rate ruling on the transaction date In determining is financial sit oaten and operating results. the Comport/ appraises and adjusts its assets and !labelers denominated in foreign currency at the exchange rate ruling on the date of Ins valuation and delemenation Exchange rate drIfererces resulting from the application d these procedures are recognaed in the results et the period in which they occur 4.2 Cash Cash a comprised d cash on-hand and in banks 4.3 Restricted Cash Restricted bark account balances are not considered ether unrestncted cash balances or cash equivalent balances for the purpose at the statement of cash lbws They are presented in tie acccmpanying statements of financial position as 'restricted cash'. and are presented as osrent or non-current assets given management's expectation that they will be wi-drawn for their cleaned purposes widen the coming Mende-north period or otherwise Net cremes in such restricted cash balances are Manned as a financing actwty in the statement of cash lbws based on the requirement for them under the Cott agreements F-448 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-0058725 CONFIDENTIAL SDNY GM_00204909 EFTA01367197