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8. Fair Value of Financial Instruments
 12 Months Ended
Mar. 30, 2015
Notes  
8. Fair Value of Financial Instruments

8.     Fair Value of Financial Instruments

 

Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The following table summarizes the carrying values and the estimated fair values of the Trust’s financial instruments as of March 30, 2015 and 2014:

 

 

2015

2014

 

 

 

 

 

 

Carrying

Estimated Fair

Carrying

Estimated Fair

 

Value

Value

Value

Value

 

 

 

 

 

Cash and cash equivalents

         $       18,886

         $       18,886

         $     111,475

         $     111,475

 

 

 

 

 

Investment in Pemberwick Fund - a short duration bond fund

 

         $     363,917

 

         $     363,917

 

         $     654,505

 

         $     654,505

 

 

 

 

 

Investment in local partnerships

         $     395,782

         $     435,000

         $  2,518,186

         $  4,900,000

 

The following methods and assumptions were used by the Trust in estimating the fair value of each class of financial instrument:

 

Cash and cash equivalents

 

The carrying amount approximates fair value.

 

Investment in Pemberwick Fund - a short duration bond fund

 

The estimated fair value of Pemberwick is based on current market quotes received from active markets. Pemberwick’s NAV is calculated and published daily (see Note 4).

 

Investment in local partnerships

 

The Trust assesses the carrying value of its investment in local partnerships at least annually in the fourth quarter of its fiscal year or whenever there are indications that a permanent impairment may have occurred (see Note 1). These valuations require significant judgments, which include assumptions regarding capitalization rates, occupancy rates, projected operating results, availability of financing, exit plan, extended use provisions of the Properties under the terms of the applicable financing agreements, comparable sales and other factors deemed necessary by the Trust. The fair value of investment in local partnerships was determined using Level 3 inputs as of March 30, 2015 and 2014 and is presented here for disclosure purposes only.