C S E G AN N U AL RE P O R T 2 0 17 43 DIR E C T O R S R EP O R T S FI N A N CI A L S CA NA DIA N S O CIE T Y OF EXP LORA T I ON G E OPHY SICIST S Note s t o F ina ncial S t at e m e nt s Y ear E nde d De cember 31 20 17 6 F I N A N CI AL IN S T RUME N T S T h e S oc ie ty s f i nanc i al i ns trum e nts t hat a r e in c l ude d in the s ta tem e nt of f in a nc ia l pos i tio n a r e c o m p r ised o f c a s h a c c o unts r ec e iv ab le ac coun ts p ay able a nd d ef er r e d r e ve nu e a ll o f w hich ap pr o x im ate f a ir v alu e d ue t o the im m ed ia te o r shor t ter m m a tur it y o f th es e in s t r um e nts In addit io n in c l uded in r e s tr i c te d a s s e ts a r e 8 280 01 o f g uar a ntee d in v es tm ent cer tific a tes wi th m a tur i tie s r a ngin g f rom J u ly 2 018 to S eptem b er 2 020 be ar in g in ter e s t at r a tes be tw een 14 to 23 T he S oc ie ty ha s s om e ex p os u r e to c h ang es in in ter e s t r ate s on the s e in ve s t m ents o ve r th is p er i od It is th e opin io n of m a nage m en t tha t the So c ie ty i s no t ex p os e d t o an y m ate r ia l c r e dit or l iq uid it y r isk o n an y of th e oth er f in an c ia l in s tr u m e nts 7 COMMIT ME NT S T h e So c ie ty is c o m m itte d to a s e ve n y ear l eas e c om m enc i ng in 2 011 th at ex p ires S ep tem b er 30 20 18 A nnu al bas e r e ntal c o m m it m e nts a r e 267 68 Cu r r e nt m o nthly pay m e nts ar e 465 5 7 CA NA DIA N SOCIETY OF EXPLORA T I O N G E O P H Y S I C I S T S Notes to Financial Statements Y ea r En de d D ec em be r 31 20 16 6 FINANCIAL INSTRUMENTS The Society s financial instruments that are included in the statement of financial position are comprised of cash accounts r e c e i v ab l e accounts pay able and deferred revenue all of which approximate fair v a lu e due to the im me diate or short term ma turity o f these instruments In addition included in restricted assets are 800600 of guarenteed investment certificates with ma turities ranging from July 2017 to July 2020 bearing interest at rates between 12 to 21 The Society has some exposure to changes in interest rates on these investments over this period It is the opinion of ma nagem ent that the Societ y is not exposed to any material credit or liquidity risk on any of the other financial instruments 7 COMMITMENTS The Society i s committed to a seven ye ar lease commencing in 2011 that expires Septem ber 30 2018 Annual base rental commitments are 26768 Current monthly pay me nts are 5034 8