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2. Significant Accounting Policies: Financial Instruments (Policies)

6 Months Ended

Feb. 28, 2015

Financial Instruments

Financial instruments

The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values:

Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts.

Accounts receivable - the carrying amounts approximate fair value due to the short-term nature and historical collectability.

Notes receivable - the carrying amounts approximate fair value due to the short-term nature of the amount.

Bank indebtedness - the carrying amount approximates fair value due to the short-term nature of the obligation.

Accounts payable and accrued liabilities - the carrying amount approximates fair value due to the short-term nature of the obligations.

The estimated fair values of the Company's financial instruments as of February 28, 2015 and August 31, 2014 follows:

		February 28, 2015			August 31, 2014
		Carrying	Fair		Carrying	Fair
		Amount	Value		Amount	Value
	Cash	$ 12,193	$ 12,193		$4,327,540	$4,327,540
	Accounts receivable, net of allowance	5,034,076	5,034,076		2,442,928	2,442,928
	Note receivable	1,700	1,700		15,000	15,000
	Bank indebtedness	875,386	875,386		-	-
	Accounts payable and accrued liabilities	954,013	954,013		1,314,755	1,314,755

The following table presents information about the assets and liabilities that are measured at fair value on a recurring basis as of February 28, 2015, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset:

			February 28, 2015			Quoted Prices in Active Markets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)

	Cash		$	12,193		$	12,193		$	—		$	—
	Bank indebtedness			875,386			875,386

The fair values of cash are determined through market, observable and corroborated sources.