PEILCC Annual Report 2025

PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION Notes to Financial Statements Year Ended March 31, 2025

16. 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: 2025 2024

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

$ 2,890,485 1,576,939

$ 3,476,078 1,613,981

$ 4,467,424

$ 5,090,059

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

$ 2,525,047

$ 2,764,701

2,525,047

2,764,701

13,811,583 5,729,377 823,949

13,009,466 5,604,312 846,627

Current portion of lease liabilities

$ 22,889,956

$ 22,225,106

17. 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 2024-2025 Annual Report