Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Policies)

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Significant Accounting Policies (Policies)
3 Months Ended
Jun. 30, 2017
Significant Accounting Policies [Abstract]  
Principles of Consolidation

(a) Principles of Consolidation

 

These condensed consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. These condensed consolidated financial statements include the accounts of the Company and the following entities:

 

  Pacific Green Technologies Marine Limited (PGTML)   Wholly-owned subsidiary
  Pacific Green Technologies International Limited (“PGTIL”)   Wholly-owned subsidiary
  Energy Park Sutton Bridge Ltd. (“EPSB”)   Wholly-owned subsidiary of PGTIL
  Pacific Green Technologies Asia Limited ("PGTA")   Wholly-owned subsidiary of PGTIL
  Pacific Green Technologies China Limited ("PGTC")   Wholly-owned subsidiary of PGTA

 

All inter-company balances and transactions have been eliminated.

Financial Instruments

(b)
Financial Instruments

 

ASC 820, “Fair Value Measurements and Disclosures” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

 

Level 1

 

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.


Level 2

 

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3

 

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

The Company’s financial instruments consist principally of cash, amounts receivable, amounts due from and to related parties, accounts payable and accrued liabilities, loan payable, convertible debenture, and note payable. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

 

The following table represents assets and liabilities that are measured and recognized at fair value as of June 30, 2017, on a recurring basis:

 

      Level 1
$
    Level 2
$
    Level 3
$
 
                     
  Cash     527,639              
  Derivative liabilities           297,346        
                           
  Total     527,639       297,346        

 

During the three months ended June 30, 2017, the Company recognized a loss on change in fair value of derivative liabilities of $105,060 (2016 - gain of $257,237).

Recent Accounting Pronouncements
  (c) Recent Accounting Pronouncements

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.