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GEODRILL LIMITED
CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2022 and 2021
(in United States dollars)
GEODRILL LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2022 and 2021
CONTENTS | |
Page | |
INDEPENDENT AUDITOR'S REPORT | 3-7 |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | 8 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 9 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | 10 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | 11 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 12-46 |
GEODRILL LIMITED | ||
CONSOLIDATED FINANCIAL STATEMENTS | ||
As at December 31, 2022 and 2021 | ||
INDEX TO THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ||
Contents | ||
1. | GENERAL INFORMATION | 12 |
2. | SIGNIFICANT ACCOUNTING POLICIES | 12 |
3. | CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS | 20 |
4. | NEW AND FUTURE ACCOUNTING STANDARDS | 23 |
5. | DETERMINATION OF FAIR VALUES | 23 |
6. | SEASONALITY OF OPERATIONS | 24 |
7. | SEGMENT REPORTING | 24 |
8. | EXPENSES BY NATURE | 25 |
9. | TAXATION | 25 |
10. | PROPERTY, PLANT AND EQUIPMENT | 28 |
11. | RIGHT-OF-USE ASSETS | 30 |
12. | FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | 31 |
13. | INVENTORIES | 31 |
14. | TRADE AND OTHER RECEIVABLES | 31 |
15. | NON-CONTROLLING INTERESTS | 32 |
16. | LOANS PAYABLE | 32 |
17. | TRADE AND OTHER PAYABLES | 33 |
18. | EMPLOYEE BENEFIT OBLIGATIONS | 34 |
19. | FAIR VALUES OF FINANCIAL INSTRUMENTS | 34 |
20. | FINANCIAL RISK MANAGEMENT | 35 |
21. | RELATED PARTY TRANSACTIONS | 40 |
22. | COMMITMENTS | 41 |
23. | SHARE CAPITAL AND RESERVES | 42 |
24. | EARNINGS PER SHARE | 43 |
25. | DIVIDENDS | 44 |
26. | EQUITY-SETTLEDSHARE-BASED PAYMENTS | 45 |
27. | CONTINGENCY | 46 |
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Independent auditor's report
To the Shareholders of Geodrill Limited
Our opinion
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Geodrill Limited and its subsidiaries (together, the Company) as at December 31, 2022 and 2021, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).
What we have audited
The Company's consolidated financial statements comprise:
- the consolidated statements of financial position as at December 31, 2022 and 2021;
- the consolidated statements of comprehensive income for the years then ended;
- the consolidated statements of changes in equity for the years then ended;
- the consolidated statements of cash flows for the years then ended; and
- the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.
PricewaterhouseCoopers LLP
PwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2
T: +1 416 863 1133, F: +1 416 365 8215
"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.
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Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2022. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
Revenue recognition for drilling revenue
Refer to note 2 - Significant accounting policies and note 3 - Critical accounting estimates and judgments to the consolidated financial statements.
For the year ended December 31, 2022, the Company recognized revenue from drilling services of $138.6 million. Revenue is measured based on the consideration specified in contracts with customers. The Company has service contracts with customers with varying terms. Judgment is required when considering contractual terms that may impact performance obligations and the amount of revenue that can be recognized. Drilling service is recognized as revenue when all the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the drilling service rendered will flow to the Company; and
- control of the service has passed to the customer and the work performed of the drilling service at the end of the reporting period has been agreed with the customer.
We determined that this is a key audit matter due to the audit effort required to assess the revenue that is generated from customers with contracts having varying terms, which require judgment in the applicability of the revenue recognition criteria.
How our audit addressed the key audit matter
Our approach to addressing the matter included the following procedures, among others:
- For a sample of revenue transactions, tested the revenue recognized, which included the following:
- Agreed key contractual terms to signed contracts with customers.
- Evaluated the contractual terms against revenue recognition criteria.
- Agreed the drilled meters to customer- approved daily drill reports.
- Tested that revenue recognized, for a period close to year-end, was recognized in the correct period by comparing, for a sample of transactions before and subsequent to year- end, the date the revenue was recognized to the date of the drilling service as per the customer-approved daily drill report
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Geodrill Ltd. published this content on 06 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2023 00:19:02 UTC.