YOUR QUICK GATEWAY (WINDSOR) INC.

Notes to FinancEai Statements (continued)

Year ended December 31, 2019

11. Financial instruments and risk management:

The carrying values of cash, short-term deposits, accounts receivable, accounts receivable - property taxes, accounts payable and accrued liabilities, accrued payroll expenses and due to City of Windsor approximate fair values because of the short maturity of these instruments.

The Corporation's activities provide for a variety of financial risks, particularly credit risk, market risk and liquidity risk.

(i) Credit risk: 

Financial assets carry credit risk that a counter-party wil! fail to discharge an obligation which would result in a financial loss. Financial assets held by the Corporation, such as cash, short" term deposits and accounts receivable, expose it to credit risk. The Corporation earns its revenue mainly from tenants and various airiines.

The Corporation's maximum credit exposure is equal to the carrying amount of its financial assets.

The carrying amount of accounts receivable is reduced through the use of an allowance for impairment and the amount of the related impairment loss is recognized in the statement of comprehensive loss. Subsequent recoveries of receivables previously provisioned are credited to the statement of comprehensive income, The balance of the allowance for impairment at December 31, 2019 is $17,996 (2018 -$24,041).

The Corporation's credit risk associated with accounts receivable is primarily related to payments from customers for services. At December 31. 2019, $198,207 (2018 - $3,240) is considered in excess of 90 days past due. Management is actively seeking to resolve these disputes

Cash is in excess of federally insured limits and is held with a large Canadian financial institution.

(ii) Liquidity risk:

The Corporation monitors its liquidity resources to ensure it has access to sufficient funds to meet operational and investing requirements, The Corporation's objective is to ensure that sufficient liquidity is on hand to meet obligations as they fali due while minimizing interest expense. The Corporation monitors cash balances to ensure that sufficient levels of liquidity are on hand to meet financial commitments as they come due. 

The Corporation's financial liabilities ali have contractual maturities of !ess than one year.

(iii) Currency risk:

The Corporation has no significant exposure to currency risk.

(iv) Interest rate risk:

The Corporation has no significant exposure to interest rate risk.