NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Notes to the Consolidated Financial Statements -  Index 1.  General Information 38 2.  Basis of Preparation 38 3.  Significant Accounting Policies 38 4.  Capital Disclosures 46 5.  Term Deposits 47 6.  Financial Instruments 47 7.  Restricted Cash 49 8.  Investments in Joint Ventures 49 9.  Property, Plant and Equipment 51  10.  Accounts Payable and Accrued Liabilities 51  11.  Income Taxes 52  12.  Pension Liability 53  13.  Share Capital 53  14.  Revenue 54  15.  Expenses by Nature 55  16.  Stock-based Compensation Plans 55  17.  Net Income per Share 57  18.  Dividends per Share 57  19.  Segmented Information 57  20.  Related Party Transactions 57  21.  Commitments and Contingencies 58  22.  Changes in Accounting Policies and Estimates 59 37 AKITA DRILLING LTD.  ANNUAL REPORT