2018 Annual Report

Annual Report 2018 86 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2018 9. Financial instruments: The Corporation is exposed to market risks from its use of financial instruments. Management does not believe that the Corporation's financial instruments are exposed to significant credit risk or liquidity risk. Market risk is the risk that changes in market prices, such as interest rates, will affect the Corporation's income. The Corporation's cash and investments include amounts on deposit with financial institutions that earn interest at market rates. The Corporation manages its cash by maximizing the interest income earned on excess funds while maintaining the liquidity necessary to conduct operations on a day-to-day basis. Fluctuations in market rates of interest would not have a significant effect on the Corporation's cash and investments. The fair value of the Corporation's cash, accounts receivable, accounts payable and accrued liabilities and unearned revenue approximate their carrying amounts due to the relatively short periods to maturity of these items. The fair value of the investments and loan receivable approximate their carrying amounts based on their market based interest rates. 10. Income taxes: The Corporation is exempt from income taxes under Section 149 of the Income Tax Act, Canada. 11. Commitments: The Corporation has committed to lease office equipment until January 2023 for minimum annual lease payments of $2,520. 12. Comparative information: Certain comparative information has been reclassified to conform to the financial statement presentation adopted in the current year. These reclassifications do not impact 2017 operations. 10