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PRINCE EDWARD ISLAND
LIQUOR CONTROL COMMISSION
Notes to Financial Statements
March 31, 2015
10.
Financial Instruments (continued...)
2015
2014
$
$
Financial Liabilities
Other tinancial liabilities measured at amortized cost
Non current
Obligations under finance leases (Note 12)
1,338,820
1,015,201
Debentures payable (Note 9)
1.016.977
1,346,356
2,355.797
2,361.557
Current
Due to the Province of Prince Edward Island
12,279,437 12,180,649
Accounts payable and accrued liabilities (Note 8)
2,137,858
2,509,055
Current portion of obligations under finance leases (Note 12)
34,576
32,249
Current portion of debentures payable (Note 9)
329,379
352,007
14,781,250 15,073,960
17.137.047 17.435.517
A description of the Commission’s risk management objectives and policies for financial
instruments is included in Note 11.
11.
Financial Risk Management
The Commission is exposed to various risks in relation to financial instruments. The
Commission’s financial assets and liabilities by category are summarized in Note 10. The
main types of risks are market, credit, and liquidity risk.
Market Risk
Market risk consists of three types: currency, interest rate, and price risk. The Commission’s
market risk management focuses on the unpredictability of financial and economic markets
and seeks to minimize potential effects on the Commission’s financial performance. In
common with many organizations that purchase in foreign currencies, the Commission may
be exposed to a marginal degree of currency risk. Management has mitigated the exposure
to this risk by limiting the number of purchase transactions originating in foreign currency.
The Commission’s policy is to minimize interest rate cash flow risk exposures on long-term
financing. Long-term borrowing is at fixed rates.
The Commission’s financial instruments are not subject to significant price risk.