Company: FECOF
Filing Date: 2025-07-15
Form Type: 20-F
Source: 0001477932-25-005053
Chunk: 61

Company: FEC Resources Inc.
Filing Date: 2025-07-15
Form: 20-F
Item: Item 18
Chunk 61
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 CRITICAL AUDIT MATTER                                                                                                                                                                                     HOW THE MATTER WAS ADDRESSED IN THE AUDIT                                                                                                                                                                                                                                                                              
  Fair value – Investment in Forum Energy Limited Refer to Note 7 of the financial statements                                                                                                               Our audit procedures relating to this fair value measurement included the following, among others:                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                    Evaluated the applicability of the share swap transaction in the valuation of the Company’s investment;                                                                                                        
                                                                                                                                                                                                                                                                                                                    With the assistance of a valuation specialist:                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                    o                                                                                                            Verified the share prices used in the calculation to determine the fair value of the investment;  
                                                                                                                                                                                                                                                                                                                    o                                                                                                            Assessed the appropriateness of the valuation method used;                                        
                                                                                                                                                                                                                                                                                                                    o                                                                                                            Assessed the reasonableness of the assumptions applied; and                                       
                                                                                                                                                                                                                                                                                                                    o                                                                                                            Tested the mathematical accuracy of the calculations.                                             

DMCL LLP

DALE MATHESON CARR-HILTON LABONTE LLP

CHARTERED PROFESSIONAL ACCOUNTANTS

We have served as the Company’s auditor since 2017

Vancouver, Canada

July 14, 2025

  F-3                
  Table of Contents  

FEC RESOURCES INC.

Statements of Financial Position

Expressed in United States Dollars

                                                   December 31                     December 31                 
                                                                                                               
                                                   2024                            2023                        
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────
  ASSETS                                                                                                       
  Cash (Note 6)                                    $                    5,756      $                    7,406  
  Prepaid expenses                                                      8,489                           9,236  
                                                                       14,245                          16,642  
  Non-current assets                                                                                           
  Investment in Forum Energy Limited (Note 7)                       8,568,094                       2,461,931  
                                                   $                8,582,339      $                2,478,573  

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

  Trade and accrued payables       41,607       17,049  
  Short term loan (Note 9)        895,637      678,155  
                                  937,244      695,204  

Shareholders’ Equity

  Share capital (Note 8)                                 17,620,625        17,620,625  
  Contributed surplus (Note 8)                            3,