NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Reconciliation of Financial Position January 1, 2012 Adjustments for changes in accounting policies $Thousands  Before  Accounting  Policy  Changes IFRS 11  (1) IAS 19  (2) After  Accounting  Policy  Changes Assets Current Assets Cash and cash equivalents  $ 18,228   $ (3,675)  $ -   $ 14,553  Term deposits  9,500  -  -   9,500  Accounts receivable  48,351   (2,924) -   45,427  Prepaid expenses and other  413  -  -   413   76,492   (6,599) -   69,893  Non-current Assets Restricted cash  3,000  -  -   3,000  Other long term assets  826  -  -   826  Investments in joint ventures -   5,672  -   5,672  Property, plant and equipment  166,812  -  -   166,812  Total Assets  $ 247,130   $ (927)  $ -   $ 246,203  Liabilities Current Liabilities Accounts payable and accrued liabilities  $ 27,550   $ (927)  $ -   $ 26,623  Deferred revenue  146  -  -   146  Dividends payable  1,262  -  -   1,262  Income taxes payable  3,269  -  -   3,269   32,227   (927) -   31,300  Non-current Liabilities Deferred income taxes   12,264  -   (113)  12,151  Pension liability  1,535  -   447   1,982  Total Liabilities  46,026   (927)  334   45,433  Shareholders’ Equity Class A and Class B shares  23,308  -  -   23,308  Contributed surplus  2,758  -  -   2,758  Retained earnings  175,038  -   (334)  174,704  Total Equity  201,104  -   (334)  200,770  Total Equity and Liabilities  $ 247,130   $ (927)  $ -   $ 246,203  (1) IFRS 11 “Joint Arrangements” (2) IAS 19 (Revised 2011) “Employee Benefits” 61 AKITA DRILLING LTD.  ANNUAL REPORT