2015_LCC Annual Report

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

10.

Financial Instruments (continued..)

Fair Value (continued...)

Fair values for accounts receivable, accounts payable, accrued liabilities, and amounts due to the Province of Prince Edward Island approximate their carrying amounts due to their short-term nature. The fair values of debentures payable and obligations under finance leases are not materially different from their carrying value as there has not been a significant fluctuation in interest rates.

Transaction Costs

Transaction costs for fair value through profit or loss instruments are recognized as profit or loss immediately while transaction costs for other financial instruments form part of the original value of the financial instrument.

De-recognition

De-recognition of a financial instrument occurs when the contractual rights to the cash flow generated by the asset expire, when the financial asset and substantially all of the risks and rewards are transferred to a third party, or when the obligation in the contract is discharged, cancelled, or expires.

The carrying amounts presented in the statement of financial position relate to the following categories of financial assets and liabilities:

2015

2014

$

$

Financial Assets

Financial assets at fair value through profit or loss, designated as held for trading Cash

2,514,863

1,786,650

Loans and receivables measured at amortized cost Accounts receivable (Note 5)

777,034

1,157,310 2.943.960

3.291,897