FAIR VALUE ACCOUNTING

12 Months Ended

Dec. 31, 2019

FAIR VALUE ACCOUNTING

FAIR VALUE ACCOUNTING

NOTE 16 FAIR VALUE ACCOUNTING

As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets and liabilities measured at fair value on a recurring basis.

The following tables identify the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy as at December 31, 2019 and 2018, as reported in the Consolidated Balance Sheets:

	Fair value as at December 31, 2019						Fair value as at December 31, 2018
	Level 1		Level 2		Total		Level 1		Level 2		Total
Marketable equity securities	$	1,885	$	—	$	1,885	$	2,718	$	—	$	2,718
Warrants		—		—		—		—		413		413
Total investments	$	1,885	$	—	$	1,885	$	2,718	$	413	$	3,131

The Company's investments mainly consist of marketable equity securities which are exchange-traded and 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 investments is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.

Furthermore, as noted in Note 5 Investments, the Company’s investments also include warrants to purchase common stock of certain extractive industry companies. Since these warrants are not traded on an active market, they are valued using the Black-Scholes option pricing model, and classified within Level 2 of the fair value hierarchy. The main inputs used in the valuation of the warrants are volatility, interest rate, dividend yield and exercise price of the instruments.

The Company does not have any Level 3 financial assets or liabilities.

The fair value of other financial assets and liabilities were assumed to approximate their carrying values due to their short-term nature and historically negligible credit losses.  

Long-term debt is recorded at a carrying value of $49.5 million at December 31, 2019 (December 31, 2018 - $49.2 million) and is assumed to approximate its fair value due to the Company recently having acquired the debt.