NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Reconciliation of Financial Position December 31, 2012 62 AKITA DRILLING LTD.  ANNUAL REPORT (1) IFRS 11 “Joint Arrangements” (2) IAS 19 (Revised 2011) “Employee Benefits” 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  $ 13,285   $ (2,282)  $ -   $ 11,003  Accounts receivable  66,116   (6,112) -   60,004  Income taxes recoverable  4,487  -  -   4,487  Prepaid expenses and other  216   (57) -   159   84,104   (8,451) -   75,653  Non-current Assets Restricted cash  3,000  -  -   3,000  Other long term assets  921  -  -   921  Investments in joint ventures -   4,825  -   4,825  Property, plant and equipment  204,969  -  -   204,969  Total Assets  $292,994   $ (3,626)  $ -   $ 289,368  Liabilities Current Liabilities Accounts payable and accrued liabilities  $ 44,669   $ (1,580)  $ -   $ 43,089  Deferred revenue  2,141   (2,046) -   95  Dividends payable  1,255  -  -   1,255   48,065   (3,626) -   44,439  Non-current Liabilities Deferred income taxes  18,989  -   (103)  18,886  Pension liability  1,942  -   406   2,348  Total Liabilities  68,996   (3,626)  303   65,673  Shareholders’ Equity Class A and Class B shares  23,186  -  -   23,186  Contributed surplus  3,060  -  -   3,060  Accumulated other comprehensive income -  -   (21)  (21) Retained earnings  197,752  -   (282)  197,470  Total Equity  223,998  -   (303)  223,695  Total Equity and Liabilities  $292,994   $ (3,626)  $ -   $ 289,368 