YOUR QUICK GATEWAY (WINDSOR) INC.

Notes to Financial Statements (continued)

Year ended December 31, 2019

3. Significant accounting policies (continued):

c) Financial instruments (continued):

(ii) Financial liabilities:

The Corporation initially recognizes financial iiabilities on the trade date at which the Corporation becomes a party to the contractual provisions of the instrument.

The Corporation derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire.

The Corporation has the following financiai Uabilities: accounts payable and accrued liabilities, accrued payroll expenses, and due to City of Windsor.

Such financial liabilities are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method.

(iii) Share capital:

Common shares

Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares are recognized as a deduction from equity.

(d) impairment:

(i) Financial assets:

Financial assets impairment follows the "expected credit loss" (ECL) model. The impairment model applies to financiai assets measured at amortized cost.

All impairment losses are recognized in profit or ioss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment !oss was recognized. For financia! assets measured at amortized cost the reversal is recognized in profit or loss.

(ii) Non-financial assets

At each reporting date, the Corporation reviews the carrying amounts of its non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverabie amount is estimated. Where the carrying value of an asset exceeds its recoverable amount, which is the higher of value in use and fair value !ess costs to sell, the asset is written down accordingly.

impairment losses are recognized in profit or ioss.