2. Significant Accounting Policies: Financial Instruments (Policies)

12 Months Ended

Aug. 31, 2021

Policies

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

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

2.SIGNIFICANT ACCOUNTING POLICIES (cont’d…) 

Financial instruments (cont’d…)

The estimated fair values of the Company's financial instruments as of August 31, 2021 and 2020 follows:

	2021		2020
	Carrying	Fair	Carrying	Fair
	Amount	Value	Amount	Value
Cash and cash equivalents	$1,184,313	$1,184,313	$3,801,037	$3,801,037
Accounts receivable, net of allowance	7,086,503	7,086,503	6,274,426	6,274,426
Notes Payable	-	-	680,707	680,707
Accounts payable and accrued liabilities	3,147,765	3,147,765	3,111,361	3,111,361
Bank Indebtedness	3,000,000	3,000,000	-	-

The following table presents information about the assets that are measured at fair value on a recurring basis as of August 31, 2021 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:

	August 31, 2021		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	1,184,313	$	1,184,313	$	—	$	—

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