New and revised IFRS in issue but not yet effective

Petroleum Fund of Timor-Leste Notes to the financial statements for the year ended 31 December 2013

4. Critical accounting estimates and judgments

Management of the Petroleum Fund makes estimates and assumptions that affect the reported amounts of assets and liabilities. Estimates are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Estimates use observable data to the extent practicable. However, areas such as credit risk, volatilities and correlations require management to make estimates. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Judgements In the process of applying the Fund’s accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the financial statements: i Capital Judgments have been made as to whether certain transactions should be recognised as capital or revenue. The basis for these judgments is outlined in Note 3c. Estimates and assumptions The Fund based its assumptions and estimates on parameters available when the financial statements were prepared. However, existing circumstances and assumptions about future developments may change due to market changes or circumstances arising beyond the control of the Fund. Such changes are reflected in the assumptions when they occur. ii Taxes Uncertainties exist with respect to the interpretation of complex tax regulations and changes in tax laws on foreign withholding tax. Given the wide range of international investments, differences arising between the actual investment income and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax expense already recorded. The Fund establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it invests. The amounts of such provisions are based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective investments domicile. As the Fund assesses the probability for litigation and subsequent cash outflow with respect to taxes as remote, no contingent liability has been recognised.

5. Interest income

Year ended 31122013 Year ended 31122012 USD USD Interest from debt securities at fair value through profit or loss 148,956,261 166,999,061 Interest from cash and cash equivalents 230,984 152,056 149,187,245 167,151,117

6. Other Receivables

As at 31122013 As at 31122012 USD USD Dividends receivable 5,793,209 3,257,223 Withholding tax receivables 4,515,589 1,472,956 Trust distributions receivables 580,945 405,870 Due from brokers receivables 140,790 1,341,235 Interest receivables 81,734 416 11,112,267 6,477,700 - 16 - Petroleum Fund of Timor-Leste Notes to the financial statements for the year ended 31 December 2013

7. Capital receipts and payments of the Petroleum Fund

During the year ended 31 December 2013 the sum of US787,000,000 31 December 2012 - US1,494,900,000 was approved for appropriation by Parliament from the Petroleum Fund. A sum of US730,000,000 31 December 2012 - US1,494,900,000 was transferred from the Petroleum Fund to the State Budget account during the year. During the year ended 31 December 2013 a total of US1,167,129,774 31 December 2012 - US1,612,518,978 was received in Article 6.1a receipts. A total of US1,866,287,711 31 December 2012 - US1,937,724,527 was received in Article 6.1b receipts. A total of US8,418,540 31 December 2012 - US8,877,025 was received in Article 6.1e receipts. The following table shows the capital receipts and payments of the Petroleum Fund. Year ended 31122013 USD Month Article 6.1a receipts Article 6.1b receipts Article 6.1e Other receipts To Consolidated Fund Refunds of taxation TOTAL January 144,802,000 178,698,405 - - - 323,500,405 February 115,888,000 196,978,657 - - - 312,866,657 March 108,896,000 184,291,044 8,287,200 - - 301,474,244 April 88,302,000 189,521,408 - - - 277,823,408 May 95,314,000 147,134,731 - - - 242,448,731 June 110,054,000 165,672,475 - - - 275,726,475 July 91,114,000 151,988,272 - 180,000,000 - 63,102,272 August 88,339,000 127,727,254 - - - 216,066,254 September 89,856,000 154,275,735 - - - 244,131,735 October 84,882,811 138,597,755 - 120,000,000 - 103,480,566 November 77,191,231 95,277,783 - 280,000,000 - 107,530,986 December 72,490,732 136,124,192 131,340 150,000,000 - 58,746,264 Totals 1,167,129,774 1,866,287,711 8,418,540 730,000,000 - 2,311,836,025 Total Article 6.1 3,041,836,025 - 17 -