WORKING CAPITAL  FINANCIAL INSTRUMENTS  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. Management of the Corporation believes that the Corporation is able to meet its obligations as they become due. 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:  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:  21  2013  2012  Cash  8,998,342 3,638,255 Trade and other receivables  955,831 3,417,642 Prepayments  125,543 182,811 Total Current Assets  $10,079,716  $7,238,708 Accounts payable & accrued liabilities  1,361,588 1,805,561 Dividends payable  3,443,243 2,345,347 Income taxes payable  1,031,701 40,585 Total Current Liabilities  $5,836,532  $4,191,493 Net Amount at December 31  $4,243,184  $3,047,215 Financial Instrument  Category  Measurement Method  Cash and cash equivalents  Held for trading  Fair value  Accounts receivable  Loans and receivables  Amortized cost  Promissory note receivable  Loans and receivables  Amortized cost  Preferred LP units  Available for sale  Fair value  Accounts payable and accrued liabilities  Other liabilities  Amortized cost  Bank indebtedness  Other liabilities  Amortized cost  Derivative financial instruments  Loans and receivables  Fair value  December 31, 2013  Total  0-6 Months  6 mo – 1 yr  1 – 2 years  3 – 4 years  Accounts payable and accrued liabilities  1,361,588 1,361,588 0 0 0 Dividends payable  3,443,243 3,443,243 0 0 0 Income taxes payable  1,031,701 1,031,701 0 0 0 Foreign exchange contracts  633,801 633,801 0 0 0 Bank indebtedness  44,500,000 0 0 29,666,667 14,833,333 Total  50,970,333 6,470,333 0 29,666,667 14,833,333 Annual Report  2013  Management Discussion & Analysis 