(10) Fair Value Measurements
The ASC Financial Instruments Topic requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practicable to estimate that value. The Topic excludes all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The following methods and assumptions are used in estimating fair value disclosure for financial instruments.
The carrying amounts of cash equivalents, Media Services trade receivables and all trade payables approximate fair value because of the short maturities of these financial instruments. Debt that bears variable interest rates indexed to prime or LIBOR also approximates fair value as it reprices when market interest rates change. The estimated fair value of the Company’s long-term, fixed-rate mortgage receivables was $35,000 at July 31, 2012 and $54,000 at April 30, 2012 and was the approximate carrying amount at those dates. At July 31, 2012 and April 30, 2012, the estimated fair values of the Company’s long-term, fixed-rate notes payable were $4,789,000 and $4,839,000 compared with carrying amounts of $4,453,000 and $4,486,000.
As a result of the purchase of the ASW Credit Facility by a company organized and wholly-owned by the Company's Vice Chairman and 45.9% shareholder, the fair value of the outstanding loan balance was determined to be approximately $15,250,000 at July 31, 2012 when its carrying value was $16,214,000.