i'mpact Singapore Tourism Board Annual Report 2010/2011

NOTES TO THE FINANCIAL STATEMENTS
31 March 2011
SB-FRS 24 (Revised) Related Party Disclosures is effective for annual periods beginning on or after January 1, 2011.
The revised standard clarifies the definition of a related party and consequently additional parties may be identified as
related to the reporting entity.
Where the exemption applies for government related entities (in relation to the disclosure of transactions, outstanding
balances and commitments) the reporting entity has to make additional disclosure, including the nature of the relationship
between STB and the government related entities and information on significant transactions or group of transactions
involved.
In the period of initial adoption, the changes to related party disclosures, if any, will be applied retrospectively with
restatement of the comparative information.
Management has considered and is of the view that the adoption of the SB-FRSs, INT SB-FRSs and Amendments to
SB-FRSs that were issued at the date of authorisation of these financial statements but not effective until future periods
will have no material impact on the financial statements in the period of their initial adoption.
(b)
FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised in the statement of financial position when STB becomes a party to
the contractual provisions of the instrument.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts or payments (including all fees paid or received that form an integral part of the effective interest
rate, transaction costs and other premium or discounts) through the expected life of the financial instrument, or where
appropriate, a shorter period. Income and expenses are recognised on an effective interest basis for debt instruments.
Financial assets
Investments are recognised and de-recognised on a trade date where the purchase or sale of an investment is under a
contract whose terms require delivery of the investment within the timeframe established by the market concerned, and
are initially measured at fair value plus transaction costs, except for those financial assets classified as at fair value through
profit or loss which are initially measured at fair value.
Other financial assets are classified into the following specified categories: financial assets “at fair value through profit
or loss, “available-for-sale” financial assets and “loans and receivables”. The classification depends on the nature and
purpose of financial assets and is determined at the time of initial recognition.
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