Sprott Physical Silver Trust Notes to the Annual Financial Statements  December 31, 2014 Going Concern Estimation Uncertainty 17 6. Cash 5. Segment Information 4. Certain Relevant Standards, Interpretations and Amendments Issued The Trust’s management has made an assessment of the Trust’s ability to continue as a going concern and is satisfied that the Trust has the  resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast  significant doubt upon the Trust’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on a going  concern basis. For tax purposes, the Trust generally treats gains from the disposition of silver bullion as capital gains, rather than income, as the Trust intends  to be a long-term passive holder of silver bullion, and generally disposes of its holdings in silver bullion only for the purposes of meeting  redemptions and to pay expenses. The Canada Revenue Agency has, however, expressed its opinion that gains (or losses) of mutual fund trusts  resulting from transactions in commodities should generally be treated for tax purposes as ordinary income rather than as capital gains,  although the treatment in each particular case remains a question of fact to be determined having regard to all the circumstances. The Trust based its assumptions and estimates on parameters available when the financial statements were prepared. However, existing  circumstances and assumptions about future developments may change due to market changes or circumstances arising beyond the control of  the Trust. Such changes are reflected in the assumptions when they occur. New standards and standards issued but not yet effective at the date of the issuance of the Trust’s financial statements are listed below. IFRS 9,  Financial Instruments (“IFRS 9”), will replace IAS 39,  Financial Instruments: Recognition and Measurement (“IAS 39”) effective  January 1, 2018. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the  multiple rules presently in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its  business model and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method  to be used, replacing the multiple impairment methods in IAS 39.  The Trust is in the process of assessing the impact of IFRS 9 and has not  yet determined when it will adopt the new standard. There are no other IFRS interpretations which are not yet effective that would be expected to have a material impact on the financial  statements. For management purposes, the Trust is organized into one main operating segment, which invests in physical silver bullion. All of the Trust’s  activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating decisions are based upon an  analysis of the Trust as one segment. The financial results from this segment are equivalent to the financial statements of the Trust as a whole.  The Trust’s operating income is earned entirely in Canada and is primarily generated from its investment in physical silver bullion. As at December 31, 2014 and 2013, cash consisted entirely of cash on deposit.