2020 Annual Report

Annual Report 2020 91 CHILLIWACK ECONOMIC PARTNERS CORPORATION NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2020 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes toFinancial Statements (continued) Year ended Dece ber 31, 2020 8. 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 financing lease receivable approximate their carrying amounts based on their market based interest rates. There has been no change to the risk exposures outlined above from 2019, other than the pervasive impact of COVID-19 as described in Note 12. 9. Income taxes: The Corporation is exempt from income taxes under Section 149 of the Income Tax Act, Canada. 10. Contractual rights: The Corporation is entitled to the following receipts under grants and rental agreements over the next five years: 2021 $ 1,132,667 2022 966,000 2023 966,000 2024 366,000 2025 366,000 Thereafter 61,000 $ 3,857,667 9