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## Notes to Consolidated Financial Statements 

Year ended December 31, 2011 

## 4. Financial risk management (continued): 

## Fair Value of Financial Instruments 

The Corporation’s financial instruments as at December 31, 2011 and December 31, 2010 include cash and cash equivalents, accounts receivable, investments, accounts payable and accrued liabilities, and bank indebtedness. The fair value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and approximate their carrying amounts due to their short-terms to maturity. Bank indebtedness bears interest at a floating market rate and accordingly the fair market value approximates the carrying value. The fair values of the available for sale investments are estimated using an approach described in note 5. 

The table below analyzes financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: 

GLYPH<g120> Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. 

GLYPH<g120> Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). 

GLYPH<g120> Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 

The following items shown on the consolidated statement of financial position as at December 31, 2011 and 2010, and January 1, 2010, are measured at fair value on a recurring basis using level 1 or level 2 inputs. The Corporation has no level 3 items and during the years ended December 31, 2011 and 2010, there were no transfers between level 1 or level 2 classified assets and liabilities. 

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