68 / 74
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.
Management is of the opinion that there are no critical judgments or significant
estimates that would have a significant effect on the amounts recognised in the
financial statements.
4.
FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT
a.
Categories of financial instruments
The following table sets out the financial instruments as at the end of the reporting period:
2017
2016
$
$
Financial assets
Loans and receivables:
Cash and cash equivalents
22,174,725 19,701,659
Other receivables
395,664
210,586
Total
22,570,389 19,912,245
Financial liabilities
At amortised cost:
Trade payables
979,264
212,191
Accrued staff costs
878,266
834,000
Accrued operating expenses
731,479
641,938
Total
2,589,009
1,688,129
b.
Financial risk management policies and objectives
The Commission is exposed to financial risk arising from its operations which include
interest rate risk, credit risk and liquidity risk. The Commission has policies and guidelines,
which set out its general risk management framework as discussed below.
There has been no change to the Commission’s exposure to these financial risks or the
manner in which it manages and measures the risk.
i. Interest rate risk management
Surplus funds in the Commission are placed with Accountant-General’s Department
as disclosed in Note 6. Interest rate sensitivity analysis has not been presented as
management do not expect any reasonable possible changes in interest rates to have a
significant impact on the Commission’s operations and cash flows.
ii. Credit risk management
Credit risk, or the risk of counterparties defaulting is controlled by the application of regular
monitoring procedures. The extent of the Commission’s credit exposure is represented by
the aggregate balance of cash and bank balances and receivables.
iii. Liquidity risk management
Liquidity risk arises in the general funding of the Commission’s operating activities. It
includes the risks of not being able to fund operating activities in a timely manner. To
manage liquidity risk, the Commission places surplus funds with the Accountant-General’s
Department which are readily available where required.
iv. Fair values of financial assets and financial liabilities
The carrying amounts of financial assets and financial liabilities as reported in the financial
statements approximate their respective fair values due to the relatively short-term
maturity of these financial instruments.
v. Capital risk management policies and objectives
The Commission manages its capital base in consideration of current economic conditions
and its plan for the year in concern. The request for grants from the Ministry of Trade
and Industry (“MTI”) is made though the annual budget exercise. The Commission is not
exposed to any external capital requirements. However, it is required to comply with FCM
No. 26/2008 under the Capital Management Framework for Statutory Boards.
The capital structure of the Commission consists of accumulated surplus and share capital.
The Commission’s capital structure remains unchanged since 31 March 2016.
NOTES TO FINANCIAL STATEMENTS
31 March 2017
COMPETITION COMMISSION OF SINGAPORE
70