• Filing Date: 2019-07-11
  • Form Type: 10-K
  • Description: Annual report
v3.19.2
Fair Value Measurements
12 Months Ended
Apr. 30, 2019
Fair Value Measurements [Text Block]
Note 8

Fair Value Measurements

   

Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to valuation of these assets or liabilities are set forth below. Transfers between levels are recognized at the end of each quarter. The Company did not recognize any transfers between levels during the periods presented.

   
 

Level 1—Inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities.

   

Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability, either directly or indirectly such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

   

Level 3— unobservable inputs for the asset or liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity.

   

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

   

The carrying values of financial instruments classified as current assets and current liabilities approximates their fair values, based on the nature and short maturity of these instruments, and are presented in the Company’s financial statements at carrying cost.

 
      Carrying           Fair Value        
  As at April 30, 2019   Amount     Fair Value     Levels     Reference  
  Assets                        
  Cash $  1,862,458   $  1,862,458     1     N/A  
  Foreign currency option contracts   1,178     1,178     2     Note 7  
    $  1,863,636   $  1,863,636              
                           
  Liabilities                        
  Foreign currency option contracts $  4,512   $  4,512     2     Note 7  
 
      Carrying           Fair Value        
  As at April 30, 2018   Amount     Fair Value     Levels     Reference  
  Cash $  2,348,883   $  2,348,883     1     N/A  

Financial Instruments Not Measured at Fair Value

The following table presents the Company’s liability that is not measured at fair value as of April 30, 2019, but for which fair value is available:

      Carrying           Fair Value        
  As at April 30, 2019   Amount     Fair Value     Levels     Reference  
  Loan payable $  3,000,000   $  2,934,538     2     Note 9  
 

Loan payable is presented on the consolidated balance sheets at carrying cost. The fair value of the fixed interest rate loan is estimated based on observable market prices or inputs. Where observable prices or inputs are not available, valuation models are applied using the net present value of cash flow streams over the term, using estimated market rates for similar instruments and remaining terms.