17 WAUBET EK BU SIN ES S DEVEL O PM E N T CORPO RA TIO N N O TE S T O FINAN CIA L S TATE M EN T S Y ear ended A ugus t 31 201 4 1 S ign i f ica n t a c c ount i ng p o lic ies c ont i nue d a Us e o f es t i m at es T he prepa r ati on of the f i na nc i al s t ate m en t s r eq u i r es m a na ge m e nt to m ak e es ti m a te s and as s u m pti on s that a ffe c t t he r ep o r ted am o u nt s of as s ets and lia b ilit i e s and d i scl o su r e of c on ti ng en t as s et s and lia b ilit i e s at t he dates of the f i na nc i al s t ate m e nt s and t he r ep o r te d a m ou nt s of r ev en ue s and ex pe ns es du r i ng the r ep or ti ng pe r i od s Ite m s s ub j ec t to s uc h es ti ma tes and as s u m pti on s in c lu d e t he v al ua t i on al l o w an c es for r ec e i v a b l es A c tua l r es ul t s c o u ld di ffe r f r om th os e e s ti m ate s T h es e es ti m ate s are r ev i e w ed p e r io d ic a l ly and as a d j u s tm e n ts b ec o m e n ec e s s ary the y are r epor t e d in ea r ni ng s in the ye a r in wh i c h the y be c o m e k no w n b F i na nc i al i n s t r u m en ts Al l f i na nc i al i ns tr u m en ts a re r e c orded at f a ir v al ue on in it i a l r ec og ni ti on Eq ui t y i ns tr u m en t s that are quoted in an a c t ive m ar k et are r ep o r ted at f a ir v al u e Al l ot he r f i na nc i al i n s t r u me nts are s ub s eq ue ntl y r ec orded at co st or a m o r ti z ed c os t un l es s m an ag e me nt has el e c ted to c ar r y t he i ns tr u m en t s at f a ir v al ue Ma na ge m en t ha s e l ec ted to r ec or d a ll i nv es tm en t s at f a ir v al ue as t he y are m an ag ed and ev a l u ate d on a f a ir v al ue b a si s T r an s a c ti on c os ts i n c ur r ed on the a c qu i s i ti on of f in a n c ia l i ns t r um e n t s m ea s u r ed s ub s e qu en tl y at f a ir va l u e are ex pe ns ed as i nc ur r ed T he S tan da r d s r eq ui r e the Cor po r ati on to cl a ssi f y f a ir v al ue m e a s ur em e n t s us i ng a f a ir v al ue hi era r c hy wh i c h in c lu d e d three l ev el s of i nf o r m at i on that m a yb e be us ed to m e as u r e f a ir v al ue i Le v el 1 Unad j us ted quoted m ar k et pr i c es in a c t ive m ar k ets f or i de nti c al as s ets or lia b ilit i e s ii Le v el 2 O bs erv ab l es or c orr o bo r a ted i np uts other th a n l ev el 1 s uc h as qu ote d pric e s f or s im i la r as s et s or lia b ilit i e s in i n a ct i ve m ar k e ts or m a r k et data f or s ub s tan ti al l y the f u ll te r m o f the a s s e ts o r lia b ilit i e s a n d iii Le v el 3 Unob s e r v ab l e i np uts that ar e s uppor t e d by lit t l e or no m ar k e t a c t iv it y and that are s ig n if i c a n t to the f ai r v al ue o f the a s s et s and lia b il it i e s c F un di ng adj us t m ent s T he Cor po r ati on has en te r ed i nto ac c ou nta bl e c on t r i bu ti on a r r an ge m en t s wi t h s e v eral go v ern m en t f un di n g agenc i es T h es e pr o g r am s ar e su b j e ct to au di t wi t h ad j us t m e nt s r e pa y a bl e to the go v ern m en t A d j u s tm e n ts m a de un de r f i na nc i ng a r r an ge m en t s are re co rd e d in th e ye a r d ur i n g wh i c h th e ad j us t m en t s are m ad e