content_image/290013.jpg content_image/290014.jpg content_image/290015.jpg
## WORKING CAPITAL 

The Company's working capital (defined as current assets less current liabilities) at December 31, 2013 and 2012 is set forth in the tables below. 

<img src='content_image/290013.jpg'>

Management of the Corporation believes that the Corporation is able to meet its obligations as they become due. 

## FINANCIAL INSTRUMENTS 

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument to another entity. Upon initial recognition all financial instruments, including derivatives, are recognized on the balance sheet at fair value. Subsequent measurement is then based on the financial instruments being classified into one of five categories: held for trading, held to maturity, loans and receivables, available for sale and other liabilities. The Corporation has designated its financial instruments into the following categories applying the indicated measurement methods: 

<img src='content_image/290014.jpg'>

The Corporation will assess at each reporting period whether there is a financial asset, other than those classified as held for trading, that is impaired. An impairment loss, other than temporary, is included in net earnings. 

The Corporation holds derivative financial instruments to hedge its foreign currency exposure. The Corporation has entered into forward contracts equal to the monthly and quarterly flow of funds from its investments in Quetico, Agility and Sequel, the Corporation’s US investments. The Corporation matched 100% of the 2014 scheduled distributions to the Canadian parent and approximately 70% to 80% of the expected 2015 distributions resulting in an economic hedge of the foreign currency exposure. The fair value of the forward contracts will be estimated at each reporting date and any gain or loss on the contracts will be recognized in profit or loss. 

The Corporation records all transaction costs incurred, in relation to the acquisition of investments classified as “available for sale”, as an additional cost of the investment. The Corporation applies trade-date accounting for the recognition of a purchase or sale of cash equivalents and derivative contracts. 

The Corporation has the following financial instruments that mature as follows: 

<img src='content_image/290015.jpg'>

