Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Exploration and Development activities

Name of the joint arrangement	Nature of the relationship with the joint arrangement	Principal place of operation of joint arrangement	Proportion of participating share
South Akcakoca Sub-Basin (“SASB”)	Operator	Turkey		49	%
Cendere	Participant	Turkey		19.6	%

Summary of Reconciliation of Financial Position

Reconciliation of financial position as at January 1, 2021 (date of transition to IFRS)

	Notes		US GAAP (Audited)			Effect of Transition to IFRS (Audited)			IFRS (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$	202,712		$	-		$	202,712
Account receivables				773,311			-			773,311
Prepaid expenses and deposits				24,302			-			24,302
Total current assets				1,000,325			-			1,000,325
Oil and gas properties, net		1,2,5		5,346,916			(3,122,443	)		2,224,473
Exploration and evaluation assets		1		-			3,122,443			3,122,443
Property and equipment, net				128,257			-			128,257
Restricted cash				11,763			-			11,763
Total assets			$	6,487,261		$	-		$	6,487,261
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities			$	1,496,510		$	-		$	1,496,510
Loans payable - current				549,424			-			549,424
Lease liability - current				12,116			-			12,116
Total current liabilities				2,058,050			-			2,058,050
Asset retirement obligation		2		4,010,624			5,344,798			9,355,422
Loans payable				17,730			-			17,730
Convertible debt				11,027			-			11,027
Derivative liability				1,804,572			-			1,804,572
Lease liability				27,693			-			27,693
Total liabilities				7,929,696			5,344,798			13,274,494
Stockholders’ deficiency:
Common stock				1,253			-			1,253
Additional paid-in capital		3		27,508,468			(27,508,468	)		-
Share premium		3					26,331,369			26,331,369
Stock subscriptions and stock to be issued				15,342			-			15,342
Warrant and option reserve		3		-			1,177,099			1,177,099
Accumulated other comprehensive loss				(490,172	)		-			(490,172	)
Accumulated deficit				(28,477,326	)		(5,344,798	)		(33,822,124	)
Total stockholders’ deficiency				(1,442,435	)		(5,344,798	)		(6,787,233	)
Total liabilities and stockholders’ deficiency			$	6,487,261		$	-		$	6,487,261

TRILLION ENERGY INTERNATIONAL INC.

Notes to the Consolidated Financial Statements

For the years ended December 31, 2022 and 2021

(Expressed in U.S. dollars)

2. Summary of Significant Accounting Policies (continued)

Reconciliation of financial position as at December 31, 2021

	Notes		US GAAP (Audited)			Restatement (Note 25) (Audited)			Effect of Transition to IFRS (Audited)			IFRS (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$	1,026,990		$	-		$	-		$	1,026,990
Accounts receivable				709,805			-			-			709,805
Prepaid expenses and deposits				95,503			-			-			95,503
Total current assets				1,832,298						-			1,832,298
Oil and gas properties, net		1,2,5		5,172,943			-			(3,752,330	)		1,420,613
Exploration and evaluation assets		1		-			-			3,116,146			3,116,146
Property and equipment, net				147,134			-			-			147,134
Restricted cash				5,438			-			-			5,438
Total assets			$	7,157,813		$	-		$	(636,184	)	$	6,521,629
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities			$	852,481		$	-		$	-		$	852,481
Loans payable				630,534			-			-			630,534
Lease liability				6,732			-			-			6,732
Total current liabilities				1,489,747			-			-			1,489,747
Asset retirement obligation		2		4,426,978			-			4,566,130			8,993,108
Loans payable				18,513			-			-			18,513
Derivative liability				472,899			-			-			472,899
Lease liability				8,592			-			-			8,592
Total liabilities				6,416,729			-			4,566,130			10,982,859
Stockholders’ equity (deficiency):
Common stock				1,828			-			-			1,828
Additional paid-in capital		3,4		33,295,413			3,064,400			(36,359,813	)		-
Share premium		3,4		-			-			35,115,302			35,115,302
Notes and amounts receivable for equity issued				(1,193,641	)		-			-			(1,193,641	)
Warrant and option reserve		3		-			-			1,165,170			1,165,170
Shares to be cancelled				5,323			-			-			5,323
Obligation to issue Shares				7,450			-			-			7,450
Accumulated other comprehensive loss				(847,412	)		-			-			(847,412	)
Accumulated deficit				(30,527,877	)		(3,064,400	)		(5,122,973	)		(38,715,250	)
Total stockholders’ equity (deficiency)				741,084			-			(5,202,314	)		(4,461,230	)
Total liabilities and stockholders’ equity (deficiency)			$	7,157,813		$	-		$	(636,184	)	$	6,521,629

TRILLION ENERGY INTERNATIONAL INC.

Notes to the Consolidated Financial Statements

For the years ended December 31, 2022 and 2021

(Expressed in U.S. dollars)

2. Summary of Significant Accounting Policies (continued)

Reconciliation of operation results for the year ended December 31, 2021

	Notes		US GAAP (Audited)			Restatement (Note 25) (Audited)			Effect of Transition to IFRS (Audited)			IFRS (Unaudited)
Revenue
Oil and natural gas sales			$	3,700,727		$	-			-		$	3,700,727
Cost and expenses
Production				2,617,118			-			-			2,617,118
Depletion		5		233,798			-			181,888			415,686
Depreciation				31,768			-			-			31,768
Accretion of asset retirement obligation		2		416,354			-			(324,371	)		91,983
Investor relations				914,770			-			-			914,770
Stock based compensation				336,366			-			-			336,366
General and administrative				2,248,164			-			-			2,248,164
Total expenses				6,798,338			-			(142,483	)		6,655,855
Loss before other income (expenses)				(3,097,611	)		-			142,483			(2,955,128	)
Other income (expenses)
Interest income				46,217			-			-			46,217
Interest expense				(126,027	)		-			-			(126,027	)
Finance cost				(176,386	)		-			-			(176,386	)
Foreign exchange loss				25,669			-			-			25,669
Loss on debt extinguishment		4		(238,724	)		-			79,341			(159,383	)
Change in fair value of derivative liability				1,473,638			(3,064,400	)		-			(1,590,762	)
Gain on disposal of equipment				40,074			-			-			40,074
Other expense				2,600			-			-			2,600
Total other income (expenses)				1,047,061			(3,064,400	)		79,341			(1,937,998	)
Net loss			$	(2,050,550	)	$	(3,064,400	)		221,824		$	(4,893,126	)
Loss per share			$	(0.01	)	$	(0.02	)		-		$	(0.03	)
Weighted average number of shares outstanding				158,166,108			-			-			158,166,108
Other comprehensive loss
Foreign currency translation adjustments			$	(357,240	)	$	-			-		$	(357,240	)
Comprehensive loss			$	(2,407,790	)	$	(3,064,400	)		221,824		$	(5,250,366	)