i'mpact Singapore Tourism Board Annual Report 2010/2011

NOTES TO THE FINANCIAL STATEMENTS
31 March 2011
(i)
With effect from financial year 2009/2010, Statutory Boards are to participate in the Centralised Liquidity Management by the AGD under AGD Circular 4/2009.
Deposits, which are interest- bearing, are centrally managed by AGD and are available to the statutory board upon request and earns interest at the average rate
of 0.56% (2009/2010 : 0.64%) per annum.
(ii)
Short-term fixed deposits are made for varying periods of up to 365 days (2009/2010 : 4 days to 365 days) depending on the immediate cash requirements
of STB, and earn interest at the average deposit rates of 0.67% (2009/2010 : 0.03% to 1.975%) per annum. The fixed deposits mature within 5 months
(2009/2010 : within 6 months) from the end of the respective reporting periods and are easily convertible to cash upon request by STB.
The cash and cash equivalents are sustainably denominated in the functional currency of STB.
12 RECEIVABLES AND PREPAYMENTS
2010/2011 2009/2010
$’000 $’000
Deposits 1,798 2,091
Short-term loan (i) - 26,399
Prepayments 1,626 2,018
Other receivables 10,247 12,141
13,671 42,649
Less: Allowance for doubtful receivables (448) (379)
13,223 42,270
(i)
The short-term loan was granted to a Statutory Board in Singapore. It was secured by a deed of charge over a cargo of artefacts owned by a whollyowned
subsidiary of the borrower and non-interest bearing. Under the terms of the loan agreement, subject to the mutual agreement between STB and the
borrower, the repayment of the loan would be by way of cash or the transfer of all rights, title and benefits to the cargo of artefacts and the related intellectual
property rights in lieu of cash. The loan was non-interest bearing, repayable upon a demand made by STB by giving notice to the borrower of not less than
90 business days.
During the current financial year, STB received the repayment of the loan by way of the transfer of all rights, title and benefits to the cargo of artefacts and
the related intellectual property rights in lieu of cash. Accordingly, the artefacts were recognised as heritage materials on the statement of financial position.
Movement in the allowance for doubtful debts:
2010/2011 2009/2010
$’000 $’000
Balance at beginning of year 379 376
Charge to income or expense 69 3
Balance at the end of year 448 379
The receivables and prepayments are sustainably denominated in the functional currency of STB.
83