NOTE 20: FINANCIAL INSTRUMENTS

a) Fair Values
The estimated fair values of financial instruments as at August 31, 2006 and 2005 are based on the relevant market prices and information available at this time. The fair value estimates may not be indicative of the amounts that the Company might receive or pay in actual market transactions.

Current Financial Assets and Liabilities
The carrying amounts of current financial assets and liabilities are reasonable estimates of their fair values due to the current nature of these instruments. Current financial assets consist of cash, cash equivalents, short-term investments and accounts receivable, while current financial liabilities consist of accounts payable and program and film rights payable.

Non-current Financial Liabilities
The carrying amounts of long-term program and film rights payable, of amounts payable under conditions and obligations resulting from licence acquisitions, and of asset retirement obligations, approximate their fair values.

b) Concentration of Credit Risk
The Company performs ongoing credit evaluations of customers and generally does not require collateral. Allowances are maintained for potential credit losses.

As at August 31, 2006, three customers of the Television segment accounted for 39% (2005 - three customers for 38%) of consolidated revenues from continuing operations, and one customer accounted for 10% of the consolidated accounts receivable (no customer accounted for 10% or more of consolidated accounts receivable as at August 31, 2005).