i'mpact Singapore Tourism Board Annual Report 2010/2011
i'mpact Singapore Tourism Board Annual Report 2010/2011
i'mpact Singapore Tourism Board Annual Report 2010/2011
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NOTES TO THE FINANCIAL STATEMENTS<br />
31 March <strong>2011</strong><br />
(iv)<br />
Liquidity risk<br />
STB monitors and maintains a level of cash and cash equivalents deemed adequate to finance its’ operations. The<br />
investment portfolio comprises mainly of quoted debt securities with resale markets to ensure portfolio liquidity.<br />
STB has non-derivative financial assets as shown on the statement of financial position under financial assets under fund<br />
management which are substantially managed externally by professional fund managers. The non-derivative financial<br />
assets comprise investments in debt securities which are mainly quoted (as disclosed under Note 13). The non-derivative<br />
financial assets may be liquidated readily when required.<br />
STB does not have a significant exposure to liquidity risk as at the end of each reporting periods.<br />
(v)<br />
Fair values of financial assets and financial liabilities<br />
The carrying amounts of financial assets and financial liabilities as reported in the financial statements approximate their<br />
respective fair values due to the relatively short-term maturity of these financial instruments.<br />
The fair values of financial assets and financial liabilities are determined as follows:<br />
• the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid<br />
markets are determined with reference to quoted market prices; and<br />
• Unquoted investment whose fair value cannot be reliably measured by alternative valuation methods are carried at<br />
cost less any impairment losses.<br />
STB classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in<br />
making the measurements. The fair value hierarchy has the following levels:<br />
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);<br />
(b)<br />
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.<br />
as prices) or indirectly (i.e. derived from prices) (Level 2); and<br />
(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).<br />
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