NOTE 8. FAIR VALUE ACCOUNTING

6 Months Ended

May 31, 2014

Fair Value Disclosures [Abstract]

NOTE 8. FAIR VALUE ACCOUNTING

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the significance of the inputs used in making the measurement.  The three levels of the fair value hierarchy are as follows:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

	Fair value at May 31, 2014
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	71,329	$	—	$	71,329	$	—
Term deposits		105,000		—		105,000		—
Marketable equity securities		1,373		1,373		—		—
Liabilities:
Embedded derivative liabilities (note 7)		58		—		—		58
	Fair value at November 30, 2013
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	81,262	$	—	$	81,262	$	—
Term deposits		110,000		—		110,000		—
Marketable equity securities		1,280		1,280		—		—
Liabilities:
Embedded derivative liabilities (note 7)		83		—		—		83

The Company’s cash equivalents and term deposits are held with two Chartered Canadian banks, each with an S&P rating of AA-. The cash equivalents and term deposits are classified as Level 2 of the fair value hierarchy as they are owed to the Company by the Canadian banks and are not traded in an active market.

The Company’s marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.

The embedded derivative is valued using Black-Scholes pricing models and is considered Level 3 financial instruments in the fair value hierarchy because the valuation model has significant unobservable inputs.