CEPCO Financial Statements
CHILLIWACK ECONOMIC PARTNERS CORPORATION
Notes to Financial Statements (continued)
Year ended December 31, 2013
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 cash equivalents 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 cash equivalents and
investments.
The fair value of the Corporation's cash and cash equivalents, 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
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:
i) The Corporation has committed to lease premises until April 2014 for minimum annual lease
payments of $57,045. The lease has been renewed from May 2014 until April 2018 for
minimum annual lease payments of $52,041.
ii) The Corporation has committed to fund a total of $850,000 to the University of the Fraser
Valley for costs related to the renovation of the downtown building of which $402,290 has
been spent as at December 31, 2013 and is included in downtown redevelopment.
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2013 Annual Report
