L'ASSOCIATION DES FRANCOPHONES DE NANAIMO

NOTES TO FINANCIAL STATEMENTS

(Unaudited) Page 10

MARCH 31, 2013 AND 2012

3. 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, liquidity or other market risks. In addition, the
Association is not exposed to any material concentrations of risk and there has been no change in the risk
exposures from the prior year except as follows:

Interest risk

The Association's investments are comprised of guaranteed investments certificates. The Association is
exposed to interest risk due to fluctuations in interest rates on those investments.

As explained in Note 6, 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.

4. SHORT-TERM INVESTMENTS

The investments of the Association are comprised of guaranteed investment certificates which
approximate their fair value due to their short-term nature.

2013 2012
Coastal Community Credit Union -
rate of 1% per year, matures November 3, 2013 $

29,804 $ 29,407

Canadian Western Bank - rate of 1.5% per year, matures

January 30, 2014

55,934

54.915

$ 85,738 $ 84,322
5. CAPITAL ASSETS
2013 2012
Accumulated Net book Net book

Cost amortization value value

Furniture and fixtures $ 11,066 $ 10,072 $ 994 $ 2,512
Equipment 49.638 49,638 - 555
$ 60,704 $ 59.710 $ 994 $ 3,067