2015_LCC Annual Report

PRINCE EDWARD ISLAND LIQUOR CONTROL COMMISSION Notes to Financial Statements March 31,2015

9.

Debentures Payable (continued...)

Principal repayments for the next five years and thereafter are as follows:

Fiscal Year

Amount $ 329,379 305,950 154,039 144,267 150,324 262.397 1,346,356

2016 2017 2018 2019 2020

Thereafter

10.

Financial Instruments

Financial Assets

The Commission’s financial assets include cash and accounts receivable. Cash has been classified as fair value through profit and loss and receivables have been classified as loans and receivables.

Cash is designated as held for trading and it is measured at fair value. Any gains or losses from this measurement are recognized through profit or loss.

Loans and receivables are financial assets with a fixed or determinate payment that are not quoted on an active market. These are measured at amortized cost using the effective interest rate method less a provision for any impairment. Discounting has been omitted as any effect on the carrying balance is not significant.

Financial Liabilities

The Commission’s accrued liabilities, amounts due to the Province of Prince Edward Island, obligations under finance leases, and debentures payable. These liabilities are classified as other financial liabilities and are measured at amortized cost using the effective interest rate method. financial liabilities consist of accounts payable,

Fair Value

Financial assets and liabilities are required to be measured at fair value on initial recognition, except for certain related party transactions. Measurement in subsequent periods is based on classification as held-for-trading, loans and receivables, and other financial liabilities. 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 fair value of cash.