L'ASSOCIATION DES FRANCOPHONES DE NANAIMO
NOTES TO FINANCIAL STATEMENTS
(Unaudited) Page 9

MARCH 31, 2016

2. FINANCIAL INSTRUMENTS RISKS

The Association's financial instruments are described in Note 1(b). In management's opinion, the
Association is not exposed to significant currency, credit, interest or liquidity except as described
below. In addition, the Association is not exposed to any material concentrations of risk and there has
been no change in the risk exposures.

interest risk
The Association's investments are comprised of guaranteed investments certificates and floating rate
redeemable term deposit . The Association is exposed to interest risk due to fluctuations in interest

rates on the term deposit.

As explained in Note 4, the Association's bank indebtedness bears interest at a variable rate.
Accordingly, the Association is exposed to interest rate cash flow risk from this financial instrument.

3. SHORT-TERM INVESTMENTS
The investments of the Association are comprised of guaranteed investment certificates and a floating

rate redeemable term deposit which recorded amounts approximate their fair value due to their short-
term nature.

2016 2015
Coastal Community Credit Union -
guaranteed investment certificate,
rate of 1.70% per year, matures November 10, 2017 $ 31,011 $ 30,582
Canadian Western Bank -
guaranteed investment certificate,
rate of 1.90% per year, matures May 30, 2018 46,964 45,923

Canadian Western Bank -
redeemable term deposit,
floating rate of 0.45% per year, matures January 29, 2017 11,790 11,743

$ 89.765 $ 88,248