Company: FECOF
Filing Date: 2025-07-15
Form Type: 20-F
Source: 0001477932-25-005053
Chunk: 77

Company: FEC Resources Inc.
Filing Date: 2025-07-15
Form: 20-F
Item: Item 18
Chunk 77
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,000  
                                                                                   758,000                        ( 136,000                         ( 56,000  
  Changes in unrecognized deferred tax assets                                    ( 758,000                          136,000                           56,000  
  Total income tax (recovery)                                  $                         -      $                         -      $                         -  

  F-19               
  Table of Contents  

FEC RESOURCES INC.

NOTES TO THE FINANCIAL STATEMENTS

December 31, 2024

( Expressed in United States Dollars)

Note 11 Income Taxes(continued)

The nature and tax effect of the temporary differences giving rise to the deferred tax assets and liabilities at December 31, 2024 and 2023 are summarized as follows:

                                                December 31,                       December 31,                   
                                                                                                                  
                                                2024                               2023                           
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Unrecognized deferred income tax assets:                                                                        
  Allowable capital losses                      $                     468,000      $                     468,000  
  Non-capital losses                                                1,945,000                          1,878,000  
  Investments                                                         625,000                          1,450,000  
  Unrecognized deferred tax assets                                ( 3,038,000                        ( 3,796,000  

As at December 31, 2024, the Company had estimated non-capital losses for Canadian tax purposes of $7,202,000thatexpire between 2027 to 2044 which may be carried forward to offset future years’ taxable income.

The potential benefit of these carry-forward non-capital losses has not been recognized in these financial statements as it is not considered probable that sufficient future taxable profit will allow the deferred tax asset to be recovered.

Note 12 Financial Instruments and Risk Management

The Company is exposed through its operations to the following financial risks:

  Market Risk     
  Credit Risk     
  Liquidity Risk  

In common with all other businesses, the Company is exposed to risks that arise from its use of financial instruments. This note describes the Company’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the Company’s exposure to financial instrument risks, its objectives, polices and processes for managing those risks or the methods used to measure them from previous years unless otherwise stated in the note.

General Objectives