PEILCC 2023 Annual Report

PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION Notes to Financial Statements Year Ended March 31, 2023

17. FINANCIAL INSTRUMENTS The Commission applies IFRS 9 when accounting for its financial instruments. IFRS 9 specifies how an entity should classify and measure financial assets and financial liabilities. The carrying amounts presented in the statement of financial position relate to the following categories of financial assets and liabilities: 2023 2022

Financial assets Financial assets measured at fair value through profit or loss Financial assets measured at amortized cost

$ 2,808,175 1,479,204

$ 2,352,567 1,426,639

$ 4,287,379

$ 3,779,206

Financial liabilities Financial liabilities measured at amortized cost Non-current Debentures payable Current Due to the Province of Prince Edward Island Accounts payable and accrued liabilities Current portion of debentures payable Current portion of lease liabilities Lease liabilities

$

-

$ 47,553 2,275,834

2,718,041 2,718,041 12,016,215 6,014,971

2,323,387

11,606,070 5,232,995

47,553 798,785

45,693 829,640

$ 21,595,565

$ 20,037,785

18. FAIR VALUE Financial assets and liabilities are measured at fair value on initial recognition except for certain related party transactions. Measurement in subsequent periods is based on fair value through profit and loss or at amortized cost using the effective interest rate method. Financial assets and liabilities recorded in the statement of financial position at fair market value are categorized based on the fair value hierarchy of inputs. The Level 1 hierarchy is unadjusted quoted prices in active markets for identical assets and liabilities. This level of inputs is used to measure the fair value of cash. Fair value for accounts receivable, accounts payable and accrued liabilities, amounts due to/from the Province of Prince Edward Island approximate their carrying amounts due to their short term natures. The fair value of debentures payable and lease liabilities are not materially different from their carrying value as there has not been a significant fluctuation in interest rates.

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PEILCC 2022-2023 Annual Report