empowering possibilities · mr. allan phua director, punggol creative cluster programme office ms....
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EMPOWERING POSSIBILITIESA N N U A L R E P O R T | O C T O B E R 2 0 1 6 – M A R C H 2 0 1 7
During the period in review, IMDA forged ahead with plans to groom ICM talents and develop more local content. In addition, new developmental initiatives were launched to help companies scale up their competencies, improve their storytelling abilities and prepare themselves for Singapore’s new Digital Economy.
IMDA still has a long journey ahead, one that will be filled with opportunities and challenges. Strengthening our partnerships with all stakeholders from industry partners to the community and staff is integral to achieving our future success.
FOREWORD
On the regulatory front, a key milestone was reached in creating greater competition in the telecommunications sector with the conclusion of the New Entrant Spectrum Auction. TPG Telecom emerged as the winner in this auction and its entry into Singapore is envisioned to spur innovation and provide consumers with greater service choices.
This report captures IMDA’s milestones and achievements in the first six months of its formation from October 2016 to March 2017.
Half a year into its new journey, the strong foundation laid by its predecessors - IDA and MDA – gave IMDA an excellent head-start for delivering on its promise of developing and regulating the infocomm and media (ICM) sectors in a more holistic and converged manner.
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Ms. Janet AngVice President,
Industry Solutions, Systems of
Engagement & Smarter Cities, IBM Asia Pacific
Dr. Lily ChanChief Executive
Officer, NUS Enterprise,
National University
of Singapore
Mr. Chey Chor WaiFormer Assurance Partner, PricewaterhouseCoopers LLP
BOARD OF DIRECTORS
Mr. Steve LeonardDeputy Chairman, IMDA* Founding CEO, SGInnovate
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Mr. Chan Yeng KitChairman, IMDA,
Permanent Secretary (Defence),
Ministry of Defence
Mr. Robert GilbyManaging Director,
The Walt Disney Company
(Southeast Asia)
Mr. Ryan LimPrincipal Consultant
and Founding Partner, QED Consulting
Pte Ltd
Mr. Chng Kai FongPrincipal Private Secretary to Prime Minister, Prime Minister’s Office
Mr. Vivek KumarAssistant
Director-General, National Trades Union Congress
Mr. Ong Peng TsinManaging Director, Monk’s Hill VenturesPte Ltd
*Until 10 March 2017
BOARD OF DIRECTORS
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Ms. Jacqueline PohChief Executive Officer,
Government Technology Agency
Ms. Janet YoungManaging Director and
Head Group Channels & Digitalization,
United Overseas Bank Group
Mr. Caesar SenguptaVice President,
Product Management, Google
Ms. Tham Loke KhengExecutive Vice President (Pay TV), PCCW Media Ltd
Mr. Zahidi bin Abdul RahmanPrincipal Architect, Zahidi A.R. Arkitek
Ms. Thien Kwee EngAssistant Managing
Director, (Cluster Group Consumer, Planning and
Research & Statistics Unit), Economic Development
Board Singapore
Ms. Shirley WongManaging Partner,
TNF VenturesPte Ltd
Mr. Tan Kiat HowChief Executive
Officer,IMDA*
Mr. Colin SampsonDirector, Coli$on Ventures Pte Ltd
Mr. Gabriel LimChief Executive Officer,
IMDA* Permanent Secretary,
Ministry of Communications and
Information#
*Until 31 December 2016#From 1 January 2017
*From 1 January 2017
SENIORMANAGEMENTMr. Tan Kiat How
Chief Executive Officer, IMDA
Commissioner, Personal Data Protection Commission
Mr. Leong Keng ThaiDeputy Chief Executive,
International & Corporate
Mr. Tan Chee WeeCovering Director, Digital Literacy
Mr. Charles ChewDirector, International
Ms. Joyce TongDirector, Finance
Ms. Ann ChanDirector, Regulatory & Corporate Communications
Ms. Karen LowDirector, Industry & Marketing Communications
Ms. Charis YanChief Information Officer, Group Information Technology
Ms. Foo Shu ChingGeneral Counsel,Group Legal
Mr. Leo TanChief Counsel, Group Legal
Mr. Tow Joon LaiDirector,Corporate Services
Ms. RajaswariDirector, Human Resource
Ms. Amy ChuaDirector, Content & Standards (Broadcast, Internet & Publications)
Ms. Chetra SinnathambyDirector, Content & Standards (Films, Video Games & Arts)
Mr. Lawrence TayDirector, Enforcement, Investigation & Prosecution
Ms. Yuvarani ThangaveluDirector, Licensing
Ms. Lee Ee JiaDirector, Media Policy
Mr. Lim Chin SiangDirector, Operation Preparedness
Ms. Lee Lie YenDirector, Planning
Mr. Christopher NgDeputy Chief Executive,
Media Regulation & Cyber Security
Ms. Aileen ChiaAssistant Chief
Executive, Connectivity & Competition Development
Ms. Angeline PohAssistant Chief Executive,
Content & Innovation
Mr. Khoong Hock YunAssistant Chief Executive,
Development
Mr. Kenneth TanAssistant Chief Executive,
Assessment & Engagement
Mr. Yeong Zee KinAssistant Chief Executive, Personal Data Protection
CommissionDeputy Commissioner,
Personal Data Protection CommissionMr. Ong Tong San
Cluster Director, Competition & Resilience Development Cluster
Mr. Harin S GrewalCluster Director, Resource & Interconnection Management ClusterDirector, Interconnection & Access
Mr. Yeo Tiong YeowDirector, Competition & Market Access
Mr. Raymond LeeDirector, Resource Management & Standards
Mr. Edwin LowDirector, Accreditation
Ms. Samantha FokDirector, Enterprise DevelopmentDirector, Incentive Management
Ms. June KohDirector, Human Capital DevelopmentDirector, TeSA Programme Office
Ms. Lee Wan SieDirector, Next Generation Infrastructure Group
Ms. Tan Sze SiangDirector, Digital Broadcasting Deployment Office
Mr. Andrew KhawSenior Director, Productivity Growth Through ICT
Ms. Yip Yuen FongSenior Director, Sectoral Innovation Group
Mr. Adrian LimDirector, Education
Ms. Karen WongDirector, Healthcare & Wellness
Mr. New Soon TeeDirector, Logistics & Retail
Mr. Yip Shue HengDirector, Services
Mr. Zeck LimDirector, Technology Solutions
Mr. Wilson AngDirector, Intelligent Computing Labs
Mr. Joachim NgDirector, Innovation SpacesDirector, Singapore Film Commission
Ms. Lee Lie YenDirector, Programme Review & Administration
Mr. Allan PhuaDirector, Punggol Creative Cluster Programme Office
Ms. Dorothy LaiDirector, Public Service Broadcast
Mr. Jason TanDirector, Operations
Ms. Evelyn GohDirector, Comms, Policy & Projects
Mr. David AlfredChief Counsel, Legal
5Designations reflected here are as of 31 March 2017.
SINGAPORE FILMS ON THE INTERNATIONAL STAGE
Singapore’s ICM talents were given a boost with almost 1,000 awards handed out by Minister of Communications and Information Dr. Yaacob Ibrahim to develop their potential in the field. These included 800 students who were admitted as the first intake in IMDA’s Industry Preparation for Pre-Graduates (iPREP) Programme. In addition, 160 SkillsFuture Study Awards were given out to support skills upgrading among ICM professionals. 33 IMDA scholarships were also presented to students to allow them to pursue ICT and media studies in polytechnics and universities.
MILESTONES& HIGHLIGHTS
A new keystone digital event, SMF Ignite made its maiden appearance at the Singapore Media Festival (SMF) 2016. The one-day event gave digital content creators the opportunity to learn, experience and create through interactive workshops and insightful conference tracks led by industry thought leaders. SMF 2016 also saw the debut of the Festival Square at CHIJMES. This hangout arena gave festival goers a special zone to network and unwind after attending screenings, conferences and meetings.
SPARKING THE MAGIC OF EXPERIENTIAL LEARNING
Singaporean filmmaker, Kirsten Tan3 made history when her debut film ‘Pop Aye’ won the World Cinema Dramatic Special Jury Award for Screenwriting at the prestigious Sundance Film Festival in January 2017. The win was a first for a Singapore film and filmmaker at the largest independent film festival in the United States. ‘Pop Aye’ also took the VPRO Big Screen Award at the International Film Festival Rotterdam in February 2017 – another first for Singapore films.
‘A Yellow Bird’ by K.Rajagopal1 was screened at the Busan International Film Festival (BIFF) in October 2016, while Boo Junfeng2 was conferred the Rising Director Award at BIFF. Boo’s ‘Apprentice’ also won the Network for the Promotion of Asia Pacific Cinema award at the Taipei Golden Horse Film Festival in November 2016 and was Singapore’s official entry to the Oscars the following year.
In December 2016, IMDA’s Media Education Scholarship recipient Alvin Lee, who is studying at the Beijing Film Academy, won the Best New Director award at the China Short Film Golden Hummingbird Awards for his short film, ‘Seed’.
1 Supported by IMDA’s New Talent Feature Grant.2 Supported by IMDA’s Production Assistance Grant, Development Assistance Grant, Film Mentorship Initiative Grant.3 Supported by IMDA’s New Talent Feature Grant, Development Assistance Grant, Film Mentorship Initiative Grant.
REALISING THE POTENTIAL OF OUR ICM TALENTS
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OCTOBER 2016
Organised by IMDA, the Data-Driven Innovation Challenge attracted 110 students from five institutes of higher learning who submitted 42 projects. The nine-month long competition challenged students to develop solutions, working prototypes and data visualisation using datasets, of which at least one dataset must be available on the Data-as-a-Service platform.
PROMOTING DATA INNOVATION AMONG YOUTHS
The four-part Mandarin series, ‘Your Personal Data, Our Responsibility’, was part of an overall media campaign by the Personal Data Protection Commission. It aims to highlight the importance of data protection to the industry, and show organisations, in particular SMEs, how a Data Protection Officer can play a role in helping to cultivate data protection at the workplace.
TELEVISION INFO-EDUCATIONAL SERIES ON PERSONAL DATA PROTECTION
IMDA led a delegation of 14 Singapore media companies on a fruitful journey to MIPCOM 2016, where the team presented more than 650 hours of Asian stories across 40 over titles. At MIPCOM 2016, IMDA also announced a year-long partnership with Discovery Networks Asia-Pacific. The partnership will see the co-creation of content between emerging and established production companies using advanced techniques and technologies and the upskilling of these production companies. These content will premiere on Discovery’s global platforms.
OVER 650 HOURS OF LOCAL CONTENT PRESENTED TO A GLOBAL AUDIENCE
MILESTONES& HIGHLIGHTS
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OCTOBER 2016
IMDA IMPOSES FINANCIAL PENALTY ON NETLINK TRUST
IMDA imposed a financial penalty of $500,000 on NetLink Trust (NLT) for not meeting the residential and non-residential Quality of Service (QoS) standards for service activation between January 2015 and June 2016. The decision took into consideration NLT’s previous QoS failures and the operational improvements made by NLT to raise its performance across the board.
To spur companies to explore a new light-based communication technology called Light Fidelity (Li-Fi), IMDA waived frequency fees for companies that intend to conduct Li-Fi trials.
MOVING AT LIGHT SPEED
The Digital TV and Silver IT Fest 2016 attracted close to 4,000 seniors and their family members at Bedok Mall. Seniors were able to learn about useful mobile apps on health, transport and government e-services at the learning islands, and explored the latest tech including Virtual Reality at the exhibition booths. Attendees also learnt about the 2G cessation and how to make the switch to 3G and Digital TV.
DIGITAL TV ANDSILVER IT FEST 2016
Machine learning and big data analytics technologies firms emerged as the big winners at National Infocomm Awards 2016, Singapore’s highest accolade for infocomm innovation. The biennial event is jointly organised by IMDA and the Singapore Infocomm Technology Federation. From 179 submissions, 16 organisations from the private and public sectors came out tops for embracing the spirit of innovation and excellence. They received the awards from Dr. Yaacob Ibrahim, Minister for Communications and Information.
MACHINE LEARNING AND BIG DATA ANALYTICS TECHNOLOGIES FIRMS ARE BIG WINNERS AT NATIONAL INFOCOMM AWARDS 2016
& HIGHLIGHTS
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NOVEMBER 2016
MILESTONES
A CELEBRATION OF ALL THINGS TECH AND MEDIA
The inaugural Infocomm Media Youth Festival at Suntec Convention Centre featured exhibitions, career talks, workshops and competitions. Visitors were able to experience augmented and virtual reality, make life-size 3D paintings, fly drones, and try their hands on radio and television news presenting. The festival aimed to increase awareness among local youths of the career opportunities in the infocomm media sector. Guest-of-honour, Mr. Chee Hong Tat, Minister of State for Communications and Information, also presented awards to three Computing teachers, in recognition of their innovative teaching methods.
IMDA and Singapore Press Holdings joined hands to produce short form digital video content in both English and Mandarin. The content will be distributed on SPH’s multimedia platforms as part of a pilot Public Service Broadcast initiative.
SPH INKS DIGITAL CONTENT PARTNERSHIP WITH IMDA
The Singapore Film Commission (SFC) partnered with Viddsee, a home-grown video streaming platform specialising in the curation and dissemination of short films from Asia, to launch a Singapore Film Channel that showcased 30 Singapore short films by up-and-coming student filmmakers and other notable independent filmmakers including Kirsten Tan and Leon Cheo. As part of the collaboration with the SFC, Viddsee commissioned its first original short film in May 2017, entitled ‘Time’ by director Daniel Yam.
NEW CHANNEL LAUNCHED TO SHOWCASE LOCAL SHORT FILMS
After reviewing the Expression of Interest Documents submitted by airYotta Pte Ltd, MyRepublic Limited and TPG Telecom Pte Ltd, IMDA pre-qualified MyRepublic Limited and TPG Telecom Pte Ltd to participate in the NESA .
IMDA PRE-QUALIFIES TWO COMPANIES FOR NEW ENTRANT SPECTRUM AUCTION (NESA)
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& HIGHLIGHTSNOVEMBER 2016
MILESTONES
CREATING FILMS INSPIRED BY ART
The Singapore Film Commission (SFC) supported the National Gallery Singapore on a first-ever collaboration involving five award-winning ASEAN film directors – Apichatpong Weerasethakul (Thailand), Brillante Mendoza (Philippines), Eric Khoo (Singapore), Ho Yuhang (Malaysia) and Joko Anwar (Indonesia) – to celebrate Southeast Asian art through film. Titled ‘Art Through Our Eyes’, the directors each selected a masterpiece from the Gallery’s Southeast Asian collection which would serve as inspiration for their original short films. The films were later compiled into an omnibus and had its world premiere at the Busan International Film Festival in October 2016 and was screened at the Singapore International Film Festival on 24 November 2016.
IMDA opened the doors to PIXEL Studios, the first facility in Singapore dedicated to helping the next generation of digital content creators and media professionals explore innovative ways to create content and tell compelling stories. Housed in 25,000 square feet of space in one-north, PIXEL Studios is one of IMDA’s PIXEL (Promising Innovation and Experiential Learning) spaces.
IMDA OPENS PIXEL STUDIOS
IMDA released its Urban Logistics Technology Roadmap for 2020 to help local firms take innovative leaps in significantly improving their domestic logistics processes. The roadmap will see the testing and implementing of new technologies to enable greater supply chain efficiencies in Singapore’s logistics and retail sectors. Under the roadmap, the Urban Logistics programme will be further rolled out to 12 additional Singapore retail malls in 2017.
IMDA UNVEILS URBAN LOGISTICS TECHNOLOGY ROADMAP
IMDA imposed a combined financial penalty of $145,000 on SingNet for two separate disruptions to Singtel TV broadcasts that occurred on 1 October 2015 and 5 January 2016. In determining the quantum of the respective financial penalties, IMDA had considered factors such as SingNet’s response to the incidents, the extent of the disruptions and SingNet’s track record.
IMDA IMPOSES FINANCIAL PENALTY ON SINGNET FOR PAY-TV SERVICE DISRUPTIONS
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& HIGHLIGHTSNOVEMBER/DECEMBER 2016
MILESTONES
ASIAN STORIES UNDER THE SPOTLIGHT
Singapore companies and content were prominently represented at Asian Television Forum and Market 2016 with 65 local media companies exhibiting their latest offerings. This comprised over 700 hours of compelling Asian stories across more than 50 film and television titles of various genres.
IMDA conducted the NESA between 13 and 14 December 2016. TPG Telecom Pte Ltd made the winning bid of $105 million, and was provisionally awarded 60 MHz of spectrum available in the NESA.
4TH MOBILE NETWORK OPERATOR – TPG – WILL ENTER THE MARKET
In view of the impending closure of the 2G mobile networks by mobile network operators from 1 April 2017, IMDA de-registered 2G-only mobile devices for sale and use in Singapore from 1 January 2017.
CEASE OF 2G DEVICES FOR LOCAL USE – A STEP CLOSER TO 2G NETWORK CLOSURE
Production has began on HBO Asia’s first original comedy drama series, ‘SENT’. Filmed in Singapore and directed and co-produced by Singaporean comedian Alaric Tay, ‘SENT’ will air exclusively on HBO Asia’s on-air, online and on-demand platforms in 2017.
ACTION, CAMERA, LAUGHTER!
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& HIGHLIGHTSDECEMBER 2016
MILESTONES
A NEW CHAPTER IN ASIAN STORYTELLING
Singapore Media Festival (SMF) 2016 celebrated the best of Asian storytelling. The event drew over 20,000 media and creative professionals, industry thought leaders, and fans of television and film from around the world. Hosted by IMDA, SMF 2016 featured conferences, labs, trade markets, screenings and award ceremonies, as well as the keystone digital event, SMF Ignite. It also starred established events such as the Asia TV Forum & Market, ScreenSingapore, Asian Television Awards and Singapore International Film Festival.
The annual Silver IT Fest Roadshow travelled to Jurong Point to encourage seniors to learn IT. Seniors and families explored interesting exhibition booths, learnt about useful mobile apps at the learning islands and could even sign up for IT classes on-the-spot. Over 3,400 participants attended the weekend of tech festivities.
SPURRING LIFELONG LEARNING AT THE SILVER IT FEST
Virtual reality technology and content production company Hiverlab, environmental consultant and water environment expert DHI Water & Environment and IMDA’s PIXEL Labs joined hands to produce a unique interactive training tool, Eyes on Habitat: Coral Reefs. The tool constructs a virtual underwater environment based on the coral reefs at the Sisters’ Islands Marine Park. The simulation allows marine biologists and reef monitoring volunteers to learn how to assess and monitor coral reefs, orientate themselves on monitoring protocols and practise their identification skills in a virtual setting before they embark on actual dives.
DIVING INTO VIRTUAL REALITY
The Personal Data Protection Commission and Cyber Security Agency of Singapore released the second issue of their student activity book, ‘Cyber Safety’. This series supports the Ministry of Education’s Cyber Wellness programme by highlighting the different aspects of cyber wellness, online security, wireless security and online personal data protection. A total of 42,000 copies of this issue were distributed to all primary five students in Singapore.
DRIVING HOME THE IMPORTANCE OF CYBER SAFETY
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& HIGHLIGHTSJANUARY TO FEBRUARY 2017
MILESTONES
TACKLING CYBER WELLNESS ISSUES WITH THE BETTER INTERNET CAMPAIGN
The annual Better Internet campaign took place this year on 7 February with the tagline, “Do What’s Right Online, Be the Change for a Better Internet”. The campaign leveraged on current cyber-wellness issues such as cyber-bullying, discernment and excessive screen time, to promote positive online behaviour. As part of the campaign, a series of social experiments based on cyber-wellness issues were conducted to generate conversation and reflection on these issues. Real-life stories from a diverse range of individuals who have personally experienced cyber-wellness issues were also shared at the campaign website which resonated strongly with the public.
INJECTING MORE DIVERSITY INTO SINGAPORE’S RADIO SCENE
IMDA awarded two radio frequencies – FM89.3 and FM96.3 – to SPH Radio Pte Ltd, paving the way for two new commercial free-to-air radio stations. Singaporeans can look forward to a new Chinese radio station for seniors above 50 years of age and a new English radio station aimed at raising financial literacy of listeners.
IMDA pre-qualified four parties – M1 Limited, Singtel Mobile Singapore Pte Ltd, StarHub Mobile Pte Ltd and TPG Telecom Pte Ltd – to participate in the General Spectrum Auction (GSA). The Quantity Stage of the GSA was conducted between 30 March 2017 and 4 April 2017, with all four parties provisionally awarded a total of 175 MHz of spectrum available in the GSA, for total winning bids amounting to approximately $1.14 billion.
IMDA SUCCESSFULLY ISSUES MORE SPECTRUM FOR 4G
IMDA imposed a financial penalty of $7,000 on SPH Radio Pte Ltd. The station’s deejays had caused offence to some listeners with remarks which stereotyped certain races while discussing a study on sleep patterns. Following investigations, IMDA found Kiss 92FM to be in breach of the Free-To-Air Radio Programme Code.
IMDA IMPOSES FINANCIAL PENALTY ON SPH RADIO FOR BREACHING CODE OF PRACTICE
Over 1,500 seniors attended the Mass IT Classes held at the ITE College West with topics ranging from using a smart phone, to basic computing skills, digital lifestyle, government digital services, social media and many more. The IT Classes also involved about 130 volunteers from the Friends of Silver Infocomm, who helped guide seniors through their learning journeys.
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& HIGHLIGHTSMARCH 2017
MILESTONES
HANDS ON TRAINING FOR ‘SILVER SURFERS’
INFO-COMMUNICATION MEDIA DEVELOPMENT AUTHORITY
AND ITS SUBSIDIARYCONSOLIDATED ANNUAL REPORT
Period from 1 October 2016 (date of establishment) to 31 March 2017
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23 August 2017
STATEMENT BY INFO-COMMUNICATIONS MEDIA DEVELOPMENT AUTHORITY
In our opinion:
(a) theaccompanyingfinancialstatementsofInfo-communicationsMediaDevelopmentAuthority(the“Authority”)andits subsidiary(the“Group”)assetoutonpagesFS1toFS45aredrawnupinaccordancewiththeprovisionsoftheInfo- communicationsMediaDevelopmentAuthorityAct(No.22of2016)(the“Group”)andStatutoryBoardFinancialReporting Standardssoastopresentfairly,inallmaterialrespects,thestateofaffairsoftheGroupandoftheAuthorityasat31 March2017andtheresultsandchangesinequityoftheGroupandoftheAuthority,andcashflowsoftheGroupforthe period from 1 October 2016 (date of establishment) to 31 March 2017; and
(b) properaccountingandotherrecordshavebeenkept,includingrecordsofallassetsoftheGroupwhetherpurchased, donatedorotherwise;and
(c) thereceipts,expenditureandinvestmentofmoneysandtheacquisitionanddisposalofassetsbytheAuthorityduringthe financialperiodhavebeeninaccordancewiththeprovisionsoftheAct.
The Board of the Info-communicationsMediaDevelopmentAuthority has, on the date of this statement, authorised thesefinancialstatementsforissue.
OnbehalfoftheBoard
Chan Yeng KitChairman
Tan Kiat HowChief Executive Officer
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INDEPENDENT AUDITORS’ REPORT
MEMBERSOFINFO-COMMUNICATIONSMEDIADEVELOPMENTAUTHORITYINFO-COMMUNICATIONSMEDIADEVELOPMENTAUTHORITY
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of Info-communications Media Development Authority (the “Authority”) and itssubsidiary(the“Group”),whichcomprisetheconsolidatedstatementsoffinancialpositionoftheGroupandthestatementoffinancialpositionoftheAuthorityasat31March2017,theconsolidatedstatementsofcomprehensiveincomeandconsolidatedstatementsofchangesinequityoftheGroupandthestatementofcomprehensiveincomeandstatementofchangesinequityoftheAuthorityandtheconsolidatedstatementofcashflowsoftheGroupforthe6-monthsperiodfrom1October2016(dateofestablishment)to31March2017,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpolicies,setoutonpagesFS1toFS45.
In our opinion, the accompanying consolidated financial statements of theGroup and the statements of financial position,statementofcomprehensiveincomeandstatementofchangesinequityoftheAuthorityareproperlydrawnupinaccordancewith theprovisionsof the Info-communicationsMediaDevelopmentAuthorityAct (the“Act”)andStatutoryBoardFinancialReportingStandardssoastopresentfairly,inallmaterialrespects,thestateofaffairsoftheGroupandtheAuthorityasat31March2017andtheresultsandchangesinequityoftheGroupandtheAuthorityandcashflowsoftheGroupfortheperiodfrom1October2016to31March2017.
Basis for opinion
WeconductedourauditinaccordancewithSingaporeStandardsonAuditing(SSAs).Ourresponsibilitiesunderthosestandardsare furtherdescribed in theAuditors’ responsibilities for theauditof thefinancial statements’ sectionofour report.Weareindependent of theAuthority in accordancewith theAccounting andCorporateRegulatoryAuthorityCodeof ProfessionalConductandEthicsforPublicAccountantsandAccountingEntities(ACRACode)togetherwiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsinSingapore,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheACRACode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
Other information
Managementisresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedintheannualreport,butdoesnotincludethefinancialstatementsandourauditors’reportthereon.
WehaveobtainedtheStatementbyInfo-communicationsMediaDevelopmentAuthoritypriortothedateofthisauditors’report.TheChairman’sMessage,Highlights,KeyPerformanceIndicatorsandPerformanceforPublicServiceBroadcastProgrammes(‘theReports’)areexpectedtobemadeavailabletousafterthatdate.
Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwewillnotexpressanyformofassuranceconclusionthereon.
Inconnectionwithourauditof thefinancialstatements,our responsibility is toreadtheother informationand, indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.
WhenwereadtheReports,ifweconcludethatthereisamaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargedwithgovernanceandtakeappropriateactionsinaccordancewithSSAs.
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INDEPENDENT AUDITORS’ REPORT
Responsibilities of management for the financial statements
Managementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeprovisionsof the Act and Statutory Board Financial Reporting Standards, and for such internal control asmanagement determines isnecessary toenable thepreparationof financial statements that are free frommaterialmisstatement,whetherdue to fraud orerror.
AstatutoryboardisconstitutedbasedonitsActanditsdissolutionrequiresParliament’sapproval. Inpreparingthefinancialstatements,management is responsible for assessing the Authority’s ability to continue as a going concern, disclosing, asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthereisintentiontowinduptheAuthorityorfortheAuthoritytoceaseoperations.
TheAuditandRiskCommitteeisresponsibleforoverseeingtheGroup’sfinancialreportingprocess.
Auditors’ responsibilities for the audit of the financial statements
Ourobjectivesare toobtain reasonableassuranceaboutwhether thefinancialstatementsasawholeare free frommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditors’reportthatincludesouropinion.Reasonableassuranceis a high level of assurance, but is not a guarantee that an audit conducted in accordancewith SSAswill always detect amaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthese financialstatements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintainprofessional scepticism throughouttheaudit.Wealso:
• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designand performauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovide a basis for our opinion. The risk of not detecting amaterialmisstatement resulting from fraud is higher than for one resultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideof internalcontrols.
• Obtainanunderstandingofinternalcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriate inthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup’sinternalcontrols.
• Evaluate theappropriatenessofaccountingpoliciesusedand the reasonablenessofaccountingestimatesand related disclosuresmadebymanagement.
• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheaudit evidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubt ontheGroup’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredto draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodifyouropinion.Our conclusions arebasedon the audit evidenceobtainedup to thedateofour auditors’report.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.
• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhether thefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
• Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithin theGrouptoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervision andperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion. WecommunicatewiththeAuditandRiskCommitteeregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolsthatweidentifyduringouraudit.
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REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Opinion
In our opinion:
(a) thereceipts,expenditure, investmentofmoneysandtheacquisitionanddisposalofassetsbytheAuthorityduringthe 6monthsperiodare,inallmaterialrespects,inaccordancewiththeprovisionsoftheAct.
(b) properaccountingandotherrecordshavebeenkept,includingrecordsofallassetsoftheAuthorityandofthesubsidiary incorporatedinSingaporeofwhichwearetheauditorswhetherpurchased,donatedorotherwise.
Basis for Opinion
WeconductedourauditinaccordancewithSSAs.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditors’ResponsibilitiesfortheComplianceAuditsectionofourreport.WeareindependentoftheBoardinaccordancewiththeACRACodetogetherwiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsinSingapore,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheACRACode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropiniononmanagement’scompliance.
Responsibilities of Management for Compliance with Legal and Regulatory Requirements
Managementisresponsibleforensuringthatthereceipts,expenditure,investmentofmoneysandtheacquisitionanddisposalofassets,areinaccordancewiththeprovisionsoftheAct.ThisresponsibilityincludesimplementingaccountingandinternalcontrolsasmanagementdeterminesarenecessarytoenablecompliancewiththeprovisionsoftheAct.
Auditors’ Responsibilities for the Compliance Audit
Our responsibility is to express an opinion on management’s compliance based on our audit of the financial statements.Weplannedandperformed thecomplianceaudit toobtain reasonableassuranceaboutwhether the receipts, expenditure,investmentofmoneysandtheacquisitionanddisposalofassets,areinaccordancewiththeprovisionsoftheAct.
Ourcomplianceauditincludesobtaininganunderstandingoftheinternalcontrolrelevanttothereceipts,expenditure,investmentofmoneysandtheacquisitionanddisposalofassets;andassessingtherisksofmaterialmisstatementofthefinancialstatementsfromnon-compliance,ifany,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Becauseoftheinherentlimitationsinanyaccountingandinternalcontrolsystem,non-compliancesmayneverthelessoccurandnotbedetected.
KPMG LLPPublic Accountants andChartered Accountants
Singapore23 August 2017
INDEPENDENT AUDITORS’ REPORT
STATEMENTS OF FINANCIAL POSITIONAs at 31 March 2017
Group Authority Note 2017 2017 $’000 $’000Assets Property,plantandequipment 4 6,475 5,702Intangibleassets 5 6,503 6,503Subsidiary 6 – 3,813Deferredexpenditure 2,227 2,227Available-for-salefinancialassets 7 763 763Financialassetsatfairvaluethroughprofitorloss 9 122,551 122,551Non-current assets 138,519 141,559 Tradeandotherreceivables 10 161,854 161,694Amountduefromasubsidiary – 700Cashandcashequivalents 8 1,121,480 1,109,283Deferredexpenditure 1,268 1,268Current assets 1,284,602 1,272,945 Total assets 1,423,121 1,414,504 Equity Sharecapital 11 1,201 1,201Capitalaccount 12 635,650 622,457Fairvaluereserve 452 452Accumulateddeficits (18,587) (19,542)Totalequity 618,716 604,568 Liabilities Deferredincome 15 480,285 479,895Amountduetoasubsidiary – 10,000Deferredcapitalgrants 17 10,180 10,180Otherdeferredgrants 18 311 311Provisionforpensionandmedicalbenefits 13 36,826 36,826Provisionforex-gratia 170 170Provisionforreinstatementofproperty,plantandequipment 2,188 2,188Deferredtaxliabilities 166 –Non-current liabilities 530,126 539,570 Deferredincome 15 115,640 112,723Tradeandotherpayables 14 110,395 109,446Grantsreceivedinadvance 16 44,245 44,245Provisionforpensionandmedicalbenefits 13 3,952 3,952Incometaxpayable 47 –Current liabilities 274,279 270,366 Total liabilities 804,405 809,936Total equity and liabilities 1,423,121 1,414,504 Net assets of trust and agency funds 19 90,707 90,707
FS1
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
STATEMENTS OF COMPREHENSIVE INCOMEPeriod from 1 October 2016 (date of establishment) to 31 March 2017
Group Authority 1 October 2016 1 October 2016 (date of establishment) (date of establishment) to 31 March 2017 to 31 March 2017
General Restricted General Restricted Note Fund Funds Total Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000Income Licenceandfrequencyfees 71,492 – 71,492 71,492 – 71,492Servicefees 2,482 – 2,482 - – -Revenuefromcompletedfilms 3,144 – 3,144 3,144 – 3,144Interestincome 5,376 – 5,376 5,376 – 5,376Otherincome 20 1,349 – 1,349 1,406 – 1,406 83,843 – 83,843 81,418 – 81,418Gainondivestmentoffinancialassets available-for-sale 1,682 – 1,682 1,682 – 1,682Netlossonfinancialassetsatfairvalue throughprofitorloss 21 (2,353) – (2,353) (2,353) – (2,353) Expenses Employeecompensation 22 (59,183) (58) (59,241) (58,295) (58) (58,353)Professionalandconsultancyfees (8,481) (17) (8,498) (8,421) (17) (8,438)Outreach,eventsandpublicityexpenses (7,153) (277) (7,430) (7,145) (277) (7,422)ITexpenses (15,347) (13) (15,360) (15,125) (13) (15,138)IrrecoverableGST (2,024) – (2,024) (2,024) – (2,024)Otherexpenses (4,631) (93) (4,724) (4,763) (93) (4,856)Generalandadministrativeexpenses (4,829) (215) (5,044) (4,725) (215) (4,940)Rentalexpenses (4,691) (375) (5,066) (4,691) (375) (5,066)Stafftraining (1,043) – (1,043) (1,043) – (1,043)Depreciationand amortisationexpenses 4and5 (3,233) (505) (3,738) (3,033) (505) (3,538)Totaloperatingexpenditure (110,615) (1,553) (112,168) (109,265) (1,553) (110,818) Developmentexpenses 23 (20,968) (32,217) (53,185) (20,968) (32,217) (53,185) Deficit before grants carried forward (48,411) (33,770) (82,181) (49,486) (33,770) (83,256)
FS2
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
Group Authority 1 October 2016 1 October 2016 (date of establishment) (date of establishment) to 31 March 2017 to 31 March 2017
General Restricted General Restricted Note Fund Funds Total Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000
Deficitbeforegrantsbroughtforward (48,411) (33,770) (82,181) (49,486) (33,770) (83,256) Government grants Governmentgrants 16 25,844 33,172 59,016 25,844 33,172 59,016Deferredcapitalgrantsamortised 17 1,554 598 2,152 1,554 598 2,152 Totalgovernmentgrants 27,398 33,770 61,168 27,398 33,770 61,168 Net deficit before contribution to consolidated fund and tax (21,013) – (21,013) (22,088) – (22,088) Taxexpenses (120) – (120) – – – Net deficit for the period (21,133) – (21,133) (22,088) – (22,088) Other comprehensive income Items that will not be reclassified to income or expenditure Actuarialgainrecognisedonprovision forpensionandmedicalbenefits 13 2,546 – 2,546 2,546 – 2,546 Items that are or may be reclassified subsequently to income or expenditure Netchangeinfairvalueoffinancialassets available-for-salereclassifiedto incomeorexpenditure – (1,682) (1,682) – (1,682) (1,682) Totalothercomprehensiveincome 2,546 (1,682) 864 2,546 (1,682) 864 Total comprehensive income (18,587) (1,682) (20,269) (19,542) (1,682) (21,224)
STATEMENTS OF COMPREHENSIVE INCOME (CONT’D)Period from 1 October 2016 (date of establishment) to 31 March 2017
FS3
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
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Capitalisationofnetassets/(liabilities)
transferredon1October2016,
dateofestablishment
1,201
635,650
2,134
––
–638,985
Netdeficitfortheperiod
––
–(21,133)
–(21,133)
(21,133)
O
ther
com
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ve in
com
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Actuarialgainrecognisedonprovisionfor
pensionandmedicalbenefits
––
–2,546
–2,546
2,546
Netchangeinfairvalueoffinancialassets
available-for-salereclassified
toincomeandexpenditure
––
(1,682)
––
–(1,682)
Totalothercomprehensiveincome
––
(1,682)
2,546
–2,546
864
Tota
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ve in
com
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–(1,682)
(18,587)
–(18,587)
(20,269)
At31March2017
1,201
635,650
452
(18,587)
–(18,587)
618,716
STAT
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FS4
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
STAT
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Perio
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Capitalisationofnetassets/(liabilities)
transferredon1October2016,
dateofestablishment
1,201
622,457
2,134
––
–625,792
Netdeficitfortheperiod
––
–(22,088)
–(22,088)
(22,088)
O
ther
com
preh
ensi
ve in
com
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Actuarialgainrecognisedonprovision
forpensionandmedicalbenefits
––
–2,546
–2,546
2,546
Netchangeinfairvalueoffinancialassets
available-for-salereclassified
toincomeandexpenditure
––
(1,682)
––
–(1,682)
Totalothercomprehensiveincome
––
(1,682)
2,546
–2,546
864
Tota
l com
preh
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ve in
com
e–
–(1,682)
(19,542)
–(19,542)
(21,224)
At31March2017
1,201
622,457
452
(19,542)
–(19,542)
604,568
FS5
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CONSOLIDATED STATEMENT OF CASH FLOWSPeriod from 1 October 2016 (date of establishment) to 31 March 2017
Group 1 October 2016 (date of establishment) Note to 31 March 2017 $’000 Cash flows from operating activities Deficitbeforegrants (82,181)Adjustments for: Depreciationandamortisationexpense 4and5 3,738Gainondivestmentoffinancialassetsavailable-for-sale (1,682)Lossonfinancialassetsatfairvaluethroughprofitorloss 21 2,353Lossondisposalofproperty,plantandequipment 123Amortisationofdeferredexpenditureintheincomeandexpenditure 634Allowanceforimpairmentfortradeandotherreceivables 128Amortisationofdeferredincomeintheincomeandexpenditure (205,307) (282,194)Changesin: -tradeandotherreceivables 246,300 -tradeandotherpayables 45,935 -deferredexpenditure (976) -deferredincome 327,693 -provisionforreinstatementofproperty,plantandequipment (756) -provisionforpensionandmedicalbenefits 427 -provisionforex-gratia 170Cashgeneratedfromoperations 336,599Taxpaid (10)Paymentofpensionandmedicalbenefits 13 (2,075)Net cash from operating activities 334,514 Cash flows from investing activities Purchasesofproperty,plantandequipment 4 (3,916)Purchasesofintangibleassets 5 (4,072)Proceedsfromsaleofproperty,plantandequipment 142Repaymentfromfinancialassetsavailable-for-sale 2,335Purchases of unit trusts (11)Proceedsfromdivestmentofunittrusts 517,225Interestreceived 2,550Net cash from investing activities 514,253 Cash flows from financing activity Governmentgrantsreceived 16 77,161Net cash from financing activity 77,161 Net increase in cash and cash equivalents 925,928CashandcashequivalentsatbeginningoftheperiodtransferredfromMDAandIDA 195,552Cash and cash equivalents at end of the period 8 1,121,480
FS6
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
Thesenotesformanintegralpartofandshouldbereadinconjunctionwiththeaccompanyingfinancialstatements.ThefinancialstatementswereauthorisedforissuebytheBoardon[dateofsigning].
1 DOMICILE AND ACTIVITIES
Info-communications Media Development Authority (the “Authority”), a statutory board under the Ministry of CommunicationsandInformation(“MCI”),wasestablishedinTheRepublicofSingaporeundertheInfo-communications MediaDevelopmentAuthorityAct(No.22of2016)on1October2016.
TheestablishmentoftheAuthoritywasbywayofrestructuringofMediaDevelopmentAuthorityofSingapore(“MDA”)and Info-communications Development Authority of Singapore (“IDA”) to form Info-communications Media Development Authority(“IMDA”)andGovernmentTechnologyAgency.
PursuanttoPart9oftheInfo-communicationsMediaDevelopmentAuthorityAct(No.22of2016),allthebusinessand undertakingsandallrightsandobligationsoftheMDAandbusinessandundertakingsandrightsandobligationsofcertain divisionsof IDAweretransferredandvested intheAuthorityon1October2016.Onthedateofestablishmentof the Authority, theassets, liabilitiesandsharecapitalofMDAandtheassetsand liabilitiesofcertaindivisionsof IDAwere transferredtotheAuthorityattheirbookvalue,withacorrespondingamountcreditedtocapitalaccount.
Asastatutoryboard,theAuthorityissubjectedtothecontrolofitssupervisoryMinistry,MCI,andisrequiredtofollowthe policiesandinstructionsissuedfromtimetotimebyMCIandothergovernmentministriesanddepartmentssuchasthe MinistryofFinance(“MOF”).
TheregisteredofficeandprincipalplaceofoperationsoftheAuthorityislocatedat3FusionopolisWay,#16-22,Symbiosis, Singapore138633.
TheAuthorityhasthefollowingfunctions:
(a) to promote the efficiency, competitiveness (including internationally) and development of the information, communicationsandmediaindustryinSingapore;
(b) topromoteandmaintainfairandefficientmarketconductandeffectivecompetitionbetweenpersonsengagedin commercialactivitiesinconnectionwithmediaservicesortelecommunicationsystemsandservicesinSingaporeor, intheabsenceofacompetitivemarket,topreventthemisuseofmonopolyormarketpower;
(c) toregulatetheprovisionanduseoftelecommunicationsystems,andequipmentandsoftwareinconnectionwithsuch systems,andtelecommunicationservices,inSingapore,includingby—
(i) ensuringthattelecommunicationservicesarereasonablyaccessibletoallpersonsinSingaporeandaresupplied asefficientlyandeconomicallyaspracticableandatperformancestandards that reasonablymeet thesocial, industrialandcommercialneedsofSingapore;and
(ii) determiningorapprovingprices,tariffsandchargesfortheprovisionoftelecommunicationsystemsandservices;
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS7
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
1 DOMICILE AND ACTIVITIES (CONT’D)
(d) to regulate the provision and use of media services, and equipment and facilities used in connection with mediaservices,inSingapore,includingby—
(i) facilitatingtheprovisionofanadequaterangeofmediaservicesthatservestheinterestsofthegeneralpublic;
(ii) ensuringthatmediaservicesareprovidedatahighstandardinallrespects,particularlyinrespectofthequality, balance and range of subject matter of their content; and
(iii) ensuringthatthecontentofmediaservicesisnotagainstpublicinterest,publicorderornationalharmony,anddoes not offend against good taste or decency;
(e) topromotetheuseoftheInternetandelectroniccommerceinSingaporeandtoestablishregulatoryframeworksfor that purpose;
(f) toregulateandmanagedomainnamesofInternetwebsitesinSingapore;
(g) topromotetheuseofinformationandcommunicationstechnologyinSingaporeand,wherenecessary,tocollaborate withtheGovernmentTechnologyAgency(establishedbysection3oftheGovernmentTechnologyAgencyAct2016) in respect of that;
(h) topromote,wheresuitable,self-regulationintheinformation,communicationsandmediaindustryinSingapore;
(i) toadvisetheGovernmentonmattersrelatingtotheinformation,communicationsandmediaindustryandthe functions of the Authority;
(j) torepresentSingaporeandadvanceSingapore’sinterestinternationallyinmattersrelatingtotheinformation, communications and media industry;
(k) topromoteresearchanddevelopmentintotechnologicalmattersrelatingtotheinformation,communicationsand media industry;
(l) topromoteandsetstandardsforthetraining,andtheupgradingofthecompetencies,ofpersonsforthepurposesofthe information,communicationsandmediaindustryinSingapore;
(m) to provide consultancy services in or outside Singapore relating to the information, communications and media industry;
(n) toperformsuchotherfunctionsasmaybeconferredontheAuthoritybyanyotherAct,includingbeingdesignated as the Personal Data Protection Commission responsible for the administration of the Personal Data Protection Act2012.
2 BASIS OF PREPARATION
2.1 Statements of compliance
The financial statements have been prepared in accordance with the provisions of the Info-communications MediaDevelopmentAuthorityAct(No.22of2016)andStatutoryBoardFinancialReportingStandards(“SB-FRS”), including Interpretations of SB-FRS (“INT SB-FRS”) and SB-FRS Guidance Notes as promulgated by the Accountant-General.
FS8
2 BASIS OF PREPARATION(CONT’D)
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except as otherwise described in the notesbelow.
2.3 Functional and presentation currency
ThesefinancialstatementsarepresentedinSingaporedollars,whichistheAuthority’sfunctionalcurrency.Allfinancial informationpresentedinSingaporedollarshavebeenroundedtothenearestthousand,unlessotherwisestated.
2.4 Use of estimates and judgements
The preparation of financial statements in conformity with SB-FRSs requiresmanagement tomake judgements, estimatesandassumptionsthataffect theapplicationofaccountingpoliciesandthereportedamountsofassets, liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.
Estimatesandunderlyingassumptionsare reviewedonanongoingbasis. Revisions toaccountingestimatesare recognisedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.
Informationaboutcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamounts recognisedinthefinancialstatementsrelatetotheclassificationofinvestmentsatfairvaluethroughprofitorlossand available-for-saleinvestments,andaredisclosedinnote3.3.
Informationaboutassumptionsandestimationuncertaintiesthathaveasignificantriskofresultinginamaterialadjustment withinthenextfinancialperiodareasfollows:
Provision for pension and medical benefits
Provision forpensionandmedicalbenefits is estimatedbymanagementbasedon themost recent valuationby professionalactuaries.Changestoassumptionsandestimatesusedinthevaluationwouldresultinchangestothe provisionforpensionandmedicalbenefitsamountsestimated.
Valuation of investments
Thedeterminationoffairvalueforfinancialassetsforwhichtherearenoobservablemarketpricerequirestheuseof valuationtechniquesasdescribedinnote28.Forfinancialinstrumentsthattradeinfrequentlyandhavelittleprice transparency,fairvalueislessobjectiveandrequiresvaryingdegreesofjudgementdependingonliquidity,concentration, uncertaintyofmarketfactors,pricingassumptionsandotherrisksaffectingthespecificinstrument.
Deferred benefits on contribution to Consolidated Fund
Deferred benefits have not been recognised on unutilised deficits carried forward as the Authority expects to continuetobeinoperatingdeficit,excludinganyinvestmentincomeandfairvaluegainsorlossesfromitsfinancial assets held at fair value throughprofit or loss.Managementbelieves that theprobability of utilising the carried forwarddeficitsisdependentonmarketperformanceanddoesnotexpectsignificantgainsinitsinvestmentsand financial assets held at fair value through profit or loss to fully offset the unutilised deficits. Accordingly, the AuthorityhasnotrecognisedanydeferredbenefitsforcontributiontoConsolidatedFund.
Licence fees
Licencefeesarebilledinadvancebasedonapercentageofthelicencees’totalqualifyingincomeorannualgross turnover.Thelicencefeesarerecognisedevenlyoverthelicenceperiodandaresubsequentlyadjustedbasedonthe latestavailableinformation.Changestotheestimatesusedinthedeterminationoflicencefeewouldresultinchanges tothelicencefeerevenuerecognisedforthefinancialperiod.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS9
2 BASIS OF PREPARATION(CONT’D)
2.5 Changes in accounting policies
On1October2016,theGrouphasadoptedallthenewandrevisedSB-FRSs,INTSB-FRSsandGuidanceNotesthat aremandatory for application on that date. The adoption of these new or revised SB-FRSs, INT SB-FRSs and GuidanceNotesdoesnothaveanysignificantimpactonthefinancialstatements.
3 SIGNIFICANT ACCOUNTING POLICIES
Theaccountingpoliciessetoutbelowhavebeenappliedconsistentlytotheperiodpresentedinthesefinancialstatements, exceptasexplainedinnote2.5,whichaddressesthechangesinaccountingpolicies.
3.1 Basis of consolidation
Subsidiaries
SubsidiariesareentitiescontrolledbytheGroup.TheGroupcontrolsanentitywhenitisexposedto,orhasrights to,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerover theentity.Thefinancialstatementsofthesubsidiaryareincludedintheconsolidatedfinancialstatementsfromthedate thatcontrolcommencesuntilthedatethatcontrolceases.
Theaccountingpoliciesofsubsidiaryhavebeenchangedwhennecessarytoalignthemwiththepoliciesadoptedby theGroup. Transactions eliminated on consolidation
Intra-groupbalancesandtransactions,andanyunrealisedincomeandexpensesarisingfromintra-grouptransactions, areeliminatedinpreparingtheconsolidatedfinancialstatements.
3.2 Foreign currency
Foreigncurrency transactions
TransactionsinforeigncurrenciesaretranslatedtothefunctionalcurrenciesoftheGroupentitiesatexchangerates atthedatesofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthereportingdate aretranslatedtothefunctionalcurrencyattheexchangerateatthatdate.Theforeigncurrencygainorlossonmonetary itemsisthedifferencebetweenamortisedcostinthefunctionalcurrencyatthebeginningoftheperiod,adjustedfor effectiveinterestandpaymentsduringtheperiod,andtheamortisedcostinforeigncurrencytranslatedattheexchange rateattheendoftheperiod.
Non-monetaryassetsandliabilitiesdenominatedinforeigncurrenciesthataremeasuredatfairvaluearetranslatedto thefunctionalcurrencyattheexchangerateatthedatethatthefairvaluewasdetermined.Non-monetaryitemsina foreigncurrencythataremeasuredintermsofhistoricalcostaretranslatedusingtheexchangerateatthedateof thetransaction.Foreigncurrencydifferencesarisingontranslationarerecognisedinincomeorexpenditure,except forthefollowingdifferenceswhicharerecognisedinothercomprehensiveincomearisingonthetranslationofavailable- for-saleequityinstruments(exceptonimpairmentinwhichcaseforeigncurrencydifferencesthathavebeenrecognised inothercomprehensiveincomearereclassifiedtoincomeorexpenditure).
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS10
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.3 Financial instruments
(i) Non-derivativefinancialassets
TheGroupinitiallyrecognisesloansandreceivablesonthedatethattheyareoriginated.Allotherfinancialassets (includingassetsdesignatedatfairvaluethroughprofitorloss)arerecognisedinitiallyonthetradedate,whichis thedatethattheGroupbecomesapartytothecontractualprovisionsoftheinstrument.
TheGroupderecognisesafinancialassetwhenthecontractualrightstothecashflowsfromtheassetexpire,orit transferstherightstoreceivethecontractualcashflowsonthefinancialassetinatransactioninwhichsubstantially all the risksand rewardsofownershipof thefinancialassetare transferred,or itneither transfersnor retains substantiallyalloftherisksandrewardsofownershipanddoesnotretaincontroloverthetransferredasset.Any interestintransferredfinancialassetsthatiscreatedorretainedbytheGroupisrecognisedasaseparateasset orliability.
Financialassetsandliabilitiesareoffsetandthenetamountpresentedinthestatementsoffinancialpositionwhen, andonlywhen,theGrouphasalegalrighttooffsettheamountsandintendseithertosettleonanetbasisorto realisetheassetandsettletheliabilitysimultaneously.
TheGroupclassifiesnon-derivativefinancialassets into the followingcategories:financialassetsat fair value throughprofitorloss,loansandreceivablesandavailable-for-salefinancialassets.
Financial assets at fair value through profit or loss
A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designatedassuchuponinitialrecognition.Financialassetsaredesignatedatfairvaluethroughprofitorlossif theGroupmanagesandevaluatestheperformanceofsuchinvestmentsbasedontheirfairvalueinaccordance with the Group’s documented risk management or investment strategy. Attributable transaction costs are recognisedinincomeorexpenditureasincurred.Financialassetsatfairvaluethroughprofitorlossaremeasured at fair value, andchanges therein,which takes intoaccount anydividend income, are recognised in income andexpenditure.
Financialassetsdesignatedatfairvaluethroughprofitorlosscompriseunittrusts.
Loans and receivables
Loansandreceivablesarefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactive market.Suchassetsareinitiallymeasuredatfairvalueplusanydirectlyattributabletransactioncosts.Subsequent toinitialrecognition,loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethod,less anyimpairmentlosses.
Loansandreceivablescomprisecashandcashequivalents,tradeandotherreceivables(excludingprepayments) andamountduefromasubsidiary.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS11
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.3 Financial instruments (Cont’d)
(i) Non-derivativefinancialassets(Cont’d)
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and cash held with Accountant-General’s Department(“AGD”).
Available-for-sale financial assets
Available-for-salefinancialassetsarenon-derivativefinancialassetsthataredesignatedasavailableforsaleor arenotclassifiedinanyoftheabovecategoriesoffinancialassets.Available-for-salefinancialassetsareinitially measuredatfairvalueplusanydirectlyattributabletransactioncosts.Subsequenttoinitialrecognition,theyare measuredatfairvalueandchangestherein,otherthanimpairmentlossesandforeigncurrencydifferenceson available-for-saledebtinstruments(seenote3.2),arerecognisedinothercomprehensiveincomeandpresented inthefairvaluereserveinequity.Whenaninvestmentisderecognised,thegainorlossaccumulatedinequityis reclassifiedtoincomeorexpenditure.
Investmentsinequity instrumentsthatdonothaveaquotedmarketpriceinanactivemarketandwhosefair valuecannotbereliablymeasuredandderivativesthatare linkedtoandmustbesettledbydeliveryofsuch unquotedequityinstrumentsaremeasuredatcost.
Financialassetsavailable-for-salecompriseinvestmentinmediafunds.TheGroupdesignatedavailable-for-sale investmentsforlongterminvestmentsinmediafundswithanexpectedinvestmentperiodof10years.Thefinancial assetsarepresentedasnon-currentunlessmanagementintendstodisposetheassetswithin12monthsafter thereportingdate. (ii) Non-derivativefinancialliabilities Financialliabilities(includingliabilitiesdesignatedatfairvaluethroughprofitorloss)arerecognisedinitiallyonthe tradedate,whichisthedatethattheGroupbecomesapartytothecontractualprovisionsoftheinstrument. TheGroupderecognisesafinancialliabilitywhenitscontractualobligationsaredischarged,cancelledorexpired. Financialassetsandliabilitiesareoffsetandthenetamountpresentedinthestatementsoffinancialpositionwhen, andonlywhen,theGrouphasalegallyenforceablerighttooffsettheamountsandintendseithertosettleonanet basisortorealisetheassetandsettletheliabilitysimultaneously. TheGroup’sothernon-derivativefinancialliabilitiesareclassifiedintotheotherfinancialliabilitiescategory.Other non-derivativefinancialliabilitiesareinitiallymeasuredatfairvaluelessanydirectlyattributabletransactioncosts. Subsequentto initial recognition, thesefinancial liabilitiesaremeasuredatamortisedcostusingtheeffective interestmethod.
Thesefinancialliabilitiescomprisetradeandotherpayablesandamountduetoasubsidiary.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS12
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.4 Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairmentlosses. Cost includesexpenditure that isdirectlyattributable to theacquisitionof theasset.Thecostofself-constructed assets includes: • the cost of materials and direct labour; • anyothercostsdirectlyattributabletobringingtheassetstoaworkingconditionfortheirintendeduse; • whentheGrouphasanobligationtoremovetheassetorrestorethesite,anestimateofthecostsofdismantling andremovingtheitemsandrestoringthesiteonwhichtheyarelocated;and • capitalisedborrowingcosts. Thegainorlossondisposalofanitemofproperty,plantandequipment(calculatedasthedifferencebetweenthenet proceedsfromdisposalandthecarryingamountoftheitem)isrecognisedinincomeorexpenditure. Thecostofreplacingacomponentofanitemofproperty,plantandequipmentisrecognisedinthecarryingamount oftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthecomponentwillflowtotheGroup, anditscostcanbemeasuredreliably.Thecarryingamountofthereplacedcomponentisderecognised.Thecosts oftheday-to-dayservicingofproperty,plantandequipmentarerecognisedinincomeorexpenditureasincurred. Depreciationisbasedonthecostofanassetlessitsresidualvalue.Significantcomponentsofindividualassetsare assessedandifacomponenthasausefullifethatisdifferentfromtheremainderofthatasset,thatcomponentis depreciatedseparately. Depreciationisrecognisedasanexpenseinincomeorexpenditureonastraight-linebasisovertheestimateduseful livesofeachcomponentofanitemofproperty,plantandequipment,unlessitisincludedinthecarryingamountof anotherasset,andisrecognisedfromthedatethattheproperty,plantandequipmentareinstalledandarereadyfor use.Assetunderconstructionarenotdepreciated. Theestimatedusefullivesforthecurrentperiodareasfollows: Vehicles 5years Furniture,fittingsandequipment 5years Computers 3years Leaseholdimprovements Overtheremainingleaseperiod Building Overtheremainingleaseperiod
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjustedifappropriate.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS13
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.5 Intangible assets
Computersystemsincludingsoftwaredevelopmentcostsarecapitalisedonthebasisofthecostsincurredtobring touseordevelopthespecificsystem.Directexpendituresincludingemployeecosts,whichenhancesorextendsthe performanceofcomputerorapplicationsystembeyonditsspecificationsandwhichcanbereliablymeasured,isadded totheoriginalcostofthesystem.Costsassociatedwithmaintainingthecomputersystemarerecognisedasexpenses whenincurred. Computersystemsaremeasuredatcostlessaccumulatedamortisationandaccumulatedimpairmentlosses.These costslessresidualvalues,areamortisedandrecognisedtoincomeorexpenditureusingthestraight-linemethodover theirestimatedusefullivesof3years.
Inrespectofinternallyconstructedintangibleassets,amortisationisrecognisedfromthedatethattheassetiscompleted andreadyforuse.Systemsunderdevelopmentarenotamortised.
Theamortisationperiodandamortisationmethodofintangibleassetsarereviewedatleastateachreportingdate.
3.6 Impairment
(i) Non-derivativefinancialassets
Afinancialassetnotcarriedatfairvaluethroughprofitorlossisassessedattheendofeachreportingperiod todeterminewhetherthereisobjectiveevidencethatit isimpaired.Afinancialassetisimpairedifobjective evidenceindicatesthatalosseventhasoccurredaftertheinitialrecognitionoftheasset,andthatthelossevent hasaneffectontheestimatedfuturecashflowsofthatassetthatcanbeestimatedreliably. Objective evidence that financial assets (including equity securities) are impaired can include default or delinquencyby a debtor, restructuringof an amountdue to theGroupon terms that theGroupwould not considerotherwise, indicationsthatadebtoror issuerwillenterbankruptcy,adversechangesinthepayment statusofborrowersorissuers,economicconditionsthatcorrelatewithdefaultsorthedisappearanceofanactive marketforasecurity.Inaddition,foraninvestmentinanequitysecurity,asignificantorprolongeddeclineinits fairvaluebelowitscostisobjectiveevidenceofimpairment.
Loans and receivables TheGroupconsidersevidenceofimpairmentforloansandreceivablesatbothaspecificassetandcollectivelevel. Allindividuallysignificantloansandreceivablesareassessedforspecificimpairment.Allindividuallysignificant receivablesfoundnottobespecificallyimpairedarethencollectivelyassessedforanyimpairmentthathasbeen incurredbutnotyetidentified.Loansandreceivablesthatarenotindividuallysignificantarecollectivelyassessed forimpairmentbygroupingtogetherloansandreceivableswithsimilarriskcharacteristics.
In assessing collective impairment, theGroup uses historical trends of the probability of default, the timing of recoveries and the amountof loss incurred, adjusted formanagement’s judgement as towhether current economicandcreditconditionsaresuchthattheactuallossesarelikelytobegreaterorlessthansuggestedby historicaltrends. Animpairmentlossinrespectofafinancialassetmeasuredatamortisedcostiscalculatedasthedifferencebetween itscarryingamountandthepresentvalueoftheestimatedfuturecashflows,discountedattheasset’soriginal effectiveinterestrate.Lossesarerecognisedinincomeorexpenditureandreflectedinanallowanceaccount againstloansandreceivables.Interestontheimpairedassetcontinuestoberecognised.WhentheGroupc onsidersthattherearenorealisticprospectsofrecoveryoftheasset,therelevantamountsarewrittenoff.Ifthe amountofimpairmentlosssubsequentlydecreasesandthedecreasecanberelatedobjectivelytoaneventoccurring aftertheimpairmentwasrecognised,thenthepreviouslyrecognisedimpairmentlossisreversedthroughincome orexpenditure.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS14
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.6 Impairment (Cont’d)
(i) Non-derivativefinancialassets(Cont’d)
Financial assets available-for-sale
Impairmentlossesonfinancialassetsavailable-for-salearerecognisedbyreclassifyingthelossesaccumulatedin thefairvaluereserveinequitytoincomeorexpenditure.Thecumulativelossthatisreclassifiedfromequityto income or expenditure is the difference between the acquisition cost, net of any principal repayment and amortisation,andthecurrentfairvalue,lessanyimpairmentlossrecognisedpreviouslyinincomeorexpenditure. Changes in cumulative impairmentprovisionsattributable toapplicationof theeffective interestmethodare reflectedasacomponentofinterestincome. If,inasubsequentperiod,thefairvalueofanimpairedavailable-for-saledebtsecurityincreasesandtheincrease canberelatedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognised,thentheimpairment lossisreversed.Theamountofthereversalisrecognisedinincomeorexpenditure.However,anysubsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensiveincome.
(ii) Non-financialassets The carrying amounts of theGroup’s non-financial assets are reviewed at each reporting date to determine whetherthereisanyindicationofimpairment.Ifanysuchindicationexists,thentheasset’srecoverableamount isestimated.Forintangibleassetsthatarenotyetavailableforuse,therecoverableamountisestimatedeach yearatthesametime.Animpairmentlossisrecognisedifthecarryingamountofanassetoritsrelatedcash- generatingunit(“CGU”)exceedsitsestimatedrecoverableamount. TherecoverableamountofanassetorCGUisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell. Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-tax discountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictothe assetorCGU. For thepurposeof impairmenttesting,assets thatcannotbetested individuallyaregrouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independentofthecashinflowsofotherassetsorCGUs. Impairmentlossesarerecognisedinincomeorexpenditure.ImpairmentlossesrecognisedinrespectofCGUs areallocatedtoreducethecarryingamountsoftheotherassetsintheCGU(groupofCGUs)onapro rata basis. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthat theasset’s carryingamountdoesnotexceed thecarryingamount thatwouldhavebeendetermined,netof depreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.
3.7 Deferred expenditure Expenditure incurred in providing scholarships is capitalised and stated at cost less accumulated amortisation. Amortisation is calculated on a straight-line basis to write off the cost over the period of the scholarship bond from1to6yearscommencingfromtheyearthatthescholarscommenceemploymentwiththeGroup.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS15
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.8 Employee benefits
(i) Definedcontributionplans
Adefinedcontributionplanisapost-employmentbenefitplanunderwhichanentitypaysfixedcontributions intoaseparateentityandwillhavenolegalorconstructiveobligationtopayfurtheramounts.Obligationsfor contributionstodefinedcontributionpensionplansarerecognisedasanemployeebenefitexpenseinincome orexpenditureintheperiodsduringwhichrelatedservicesarerenderedbyemployees.
Contributionsontheemployees’salariesaremadetotheCentralProvidentFund(“CPF”)asrequiredbylaw.CPF contributionsarerecognisedasemployeecompensationexpensesintheperiodwhentheemployeesrendered theirservices.
(ii) Definedbenefitplans
TheGroupoperatesadefinedbenefitpensionplanthatprovidescertainpost-employmentpensionbenefitsfor eligibleemployees. Adefinedbenefitplanisapost-employmentbenefitplanotherthanadefinedcontributionplan.TheGroup’snet obligationinrespectofdefinedbenefitpensionplansiscalculatedseparatelyforeachplanbyestimatingthe futurebenefitthattheemployeeshaveearnedinreturnfortheirserviceinthecurrentandpriorperiods;that benefitisdiscountedtodetermineitspresentvalue.Thefairvalueofanyplanassetsisdeducted.TheGroup determinesthenetinterestexpense(income)onthenetdefinedbenefitliability(asset)fortheperiodbyapplying thediscount rateused tomeasure thedefinedbenefitobligationat thebeginningof theperiod to thenet definedbenefitliability(asset).ThediscountrateistheyieldoftheSingaporegovernmentbondratethathas maturitydatesapproximating the termsof theAuthority’sobligationsand thataredenominated in thesame currencyinwhichthebenefitsareexpectedtobepaid. Thecalculationisperformedannuallybyaqualifiedactuaryusingtheprojectedunitcreditmethod.Underthe method,a“projectedaccruedbenefit”iscalculatedforeachbenefit.Forallactivemembersofthescheme,the “projectedaccruedbenefit”isbasedonthescheme’saccrualformulaanduponserviceasofthevaluationdate, butusingtheemployee’sschemesalary,projectedtotheageatwhichtheemployeeisassumedtoleaveactive service.Forinactivemembers,itisthetotalbenefit.Thedefinedbenefitobligation/projectbenefitobligation/ plan liability is the discounted present value of the “projected accrued benefits”. The service cost is the correspondingvalueofbenefitsearnedbyactivemembersovertheyearasaresultofonemoreyearofservice. Re-measurements fromdefined benefit plans comprise actuarial gains and losses, the return on plan assets (excluding interest)andtheeffectof theassetceiling (ifany,excluding interest).TheGrouprecognises them immediately in other comprehensive income and all expenses related to definedbenefit plans in employee benefitsexpenseinincomeorexpenditure. Whenthebenefitsofaplanarechanged,orwhenaplaniscurtailed,theportionofthechangedbenefitrelated topastservicebyemployees,orthegainorlossoncurtailment,isrecognisedimmediatelyinprofitorlosswhen theplanamendmentorcurtailmentoccurs.
TheGrouprecognisesgainsandlossesonthesettlementofadefinedbenefitplanwhenthesettlementoccurs. Thegainor lossonsettlement is thedifferencebetweenthepresentvalueof thedefinedbenefitobligation being settled as determined on the date of settlement and the settlement price, including any plan assets transferredandanypaymentsmadedirectlybytheGroupinconnectionwiththesettlement.
FS16
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.8 Employee benefits(Cont’d)
(iii) Terminationbenefits
TerminationbenefitsarerecognisedasanexpensewhentheGroupiscommitteddemonstrably,withoutrealistic possibilityofwithdrawal,toaformaldetailedplantoeitherterminateemploymentbeforethenormalretirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. TerminationbenefitsforvoluntaryredundanciesarerecognisedasanexpenseiftheGrouphasmadeanoffer of voluntary redundancy, it is probable that theofferwill be accepted, and the number of acceptances can be estimated reliably. If benefits are payablemore than 12months after the reporting date, then they are discountedtotheirpresentvalue.
(iv) Short-termemployeebenefits
Short-term employee benefit obligations aremeasured on an undiscounted basis and are expensed as the relatedserviceisprovided.Aliabilityisrecognisedfortheamountexpectedtobepaidundershort-termcash bonusiftheAuthorityhasapresentlegalorconstructiveobligationtopaythisamountasaresultofpastservice providedbytheemployee,andtheobligationcanbeestimatedreliably.
(v) Employeeleaveentitlements
Employeeentitlementstoannualleavearerecognisedwhentheyaccruetoemployees.Accrualismadeforthe unconsumedleaveasaresultofservicesrenderedbyemployeesuptothereportingdate.
(vi) Provisionforex-gratiapayments
ThisamountisprovidedforpaymentstobemadetoformerSingaporeBroadcastingCorporation(“SBC”)staff transferredfromMDAtotheGroup.TheprovisioniscomputedbasedontheguidelinescontainedintheMinistry ofFinance(Revenue)CircularNo.4/94dated10August1994.
3.9 Provisions
Provisionsarerecognisedif,asaresultofapastevent,theGrouphasapresentlegalorconstructiveobligationthat can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle theobligation.Provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsthatreflectscurrentmarket assessmentsofthetimevalueofmoneyandtherisksspecifictotheliability.
3.10 Share capital OrdinarysharesissuedinaccordancewithFCM26/2008-CapitalManagementFrameworkforStatutoryBoards,are classifiedasequity.ThesharesissuedareheldbytheMinisterforFinance,incorporatedbytheMinisterforFinance (Establishment)Act.
3.11 Dividends
DividendspayabletotheMinistryofFinance,theultimateshareholder,arerecognisedwhentheAuthorityapprovesthe dividendsforpayment.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS17
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
3 SIGNIFICANT ACCOUNTING POLICIES(CONT’D)
3.12 Trust and agency funds
MoneysreceivedfromtheGovernmentofSingaporeandotherorganisationswheretheAuthorityisnottheowner andbeneficiary,areaccountedforastrustandagencyfunds.
ThetotalnetassetsandliabilitiesofthetrustandagencyfundsoftheAuthority–PublicServiceBroadcast(“PSB”)as wellasothertrustandagencyfundsareshownasaseparatelineinthestatementsoffinancialposition.Trustand agencyfundsareaccountedforonacashbasis.Thereceiptsandexpendituresofthesefundsaredirectlytakento thefundaccounts.
3.13 Restricted funds
Thesearefundssetasideforspecificpurposesandforwhichseparatedisclosureismadeasthesefundsarematerial andsubjecttorestrictionsontheabilityoftheAuthoritytodistributeorotherwiseapplyitsfunds.Thetreatmentis inaccordancewithGuidanceNote1issuedbytheAGD.Restrictedfundsareaccountedforonanaccrualbasis.
3.14 Revenue recognition RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheAuthorityandthe revenuecanbereliablymeasured.Thefollowingrecognitioncriteriamustalsobemetbeforerevenueisrecognised:
(a) Licence & Frequency fees Licenceandfrequencyfeesarerecognisedontheaccrualbasisoverthevalidityperiod,exceptforcertaintypes offeesthatarerecognisedintheyearinwhichtheyarereceived,netofgoodsandservicestax.
(b) Service fees
Servicefeesarerecognisedintheperiodwhentheservicesarerenderedtocustomers,netofgoodsandservicetax.
(c) Revenue from completed films Under theGroup’s industrydevelopments schemes, the shareof returns from themarketingand saleof the completedfilms,televisionprogrammes,digitalmediaandpublishingprojectsarerecognisedasrevenuewhen soldbytheproductioncompaniestotheircustomers.
(d) Interest income
Interestincomeisaccruedonatime-proportionbasisbyreferencetotheprincipaloutstandingusingtheeffective interestmethod.
(e) Unclaimed moneys
UnclaimedmoneysheldbytheAuthoritywhicharenotclaimedwithin6yearsofitsreceiptarerecognisedin incomeorexpenditureas“Otherincome”.
FS18
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.15 Government grants
GovernmentgrantsandcontributionsfromotherorganisationsarerecognisedinitiallyasGrantsreceivedinadvance attheirfairvaluewherethereisreasonableassurancethattheywillbereceivedandtheAuthoritywillcomplywiththe conditionsassociatedwiththegrantsandcontributions. Government grants received to meet the Authority’s operating expenditure are recognised in the income or expenditureasincomeonasystematicbasisinthesamefinancialperiodwhentheexpensesarerecognised. Governmentgrantsutilisedforthepurchaseortheconstructionofdepreciabletangibleandintangibleassetsare recordedinthedeferredcapitalgrantsaccount.Thedeferredcapitalgrantsareamortisedtoincomeorexpenditure overtheperiodnecessarytomatchtheannualdepreciationandamortisationchargeoftheseassetspurchasedwith therelatedgrants.Ondisposaloftheseassets,thebalanceoftherelateddeferredcapitalgrantisrecognisedin incomeorexpendituretomatchthenetbookvalueoftheassetsdisposed.
Governmentgrantsutilised for investment infinancialassetsavailable-for-saleare recorded in theotherdeferred grants account. The other deferred grants are amortised to income or expenditure tomatch the impairment of thesefinancialassets.Ondisposalofthesefinancialassetsavailable-for-sale,thebalanceoftherelatedotherdeferred grantsisrecognisedinincomeorexpendituretomatchanynetimpairmentrelatingtothedisposedinvestments.
3.16 Operating lease payments When entities within the Group are lessees of an operating lease
WheretheGrouphastheuseofassetsunderoperatingleases,paymentsmadeundertheleasesarerecognisedini ncomeorexpenditureonastraight-linebasisoverthetermofthelease.Leaseincentivesreceivedarerecognised inincomeorexpenditureasanintegralpartofthetotalleasepaymentsmade.Leasedassetsarenotrecognisedin theGroup’sstatementsoffinancialposition.
Determining whether an arrangement contains a lease
Atinceptionofanarrangement,theGroupdetermineswhethersuchanarrangementisorcontainsalease.Thiswill bethecaseifthefollowingtwocriteriaaremet:
• thefulfilmentofthearrangementisdependentontheuseofaspecifiedassetorassets;and • thearrangementcontainsarighttousetheasset. At inceptionorupon reassessmentof thearrangement, theGroupseparatespaymentsandotherconsiderations requiredbysuchanarrangementintothosefortheleaseandthoseforotherelementsonthebasisoftheirrelative fairvalues.IftheGroupconcludesforafinanceleasethatitisimpracticabletoseparatethepaymentsreliably,then anassetandaliabilityarerecognisedatanamountequaltothefairvalueoftheunderlyingasset.Subsequently, theliabilityisreducedaspaymentsaremadeandanimputedfinancechargeontheliabilityisrecognisedusingthe Group’sincrementalborrowingrate.
FS19
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.17 Donation
Donations,otherthanthosespecifiedbelow,arerecognisedinincomeintheperiodofreceipt.
Property,plant andequipmentobtained throughdonations that canbe reliablymeasuredare taken todeferred capitalgrantsat their fair value in theperiodof receipt.Thedeferredcapitalgrantsareamortised to incomeor expenditureovertheperiodnecessarytomatchtheannualdepreciationandamortisationchargeoftheseassets.
3.18 Contribution to Consolidated Fund
TheAuthorityisrequiredtomakecontributiontotheConsolidatedFundinaccordancewiththeStatutoryCorporations (Contributions to Consolidation Funds) Act, Chapter 319A. The provision is based on guidelines specified by theMinistryofFinance.Itiscomputedbasedonapercentagepeggedattheprevailingcorporatetaxrateforthe periodofassessmenton thenetsurplusof theAuthorityandafterdeductingprioryear’saccumulateddeficits in accordancewithFCM5/2005–FrameworkforContributiontoConsolidatedFundbyStatutoryboards.Contribution isprovidedforonanaccrualbasis.
TheAuthorityisallowedtocarryforwarditsdeficitstooffsetitsfuturesurplus.Thedeficitshavenoexpirydate.
Thebenefitsassociatedwiththedeficitsarerecognisedasdeferredincometaxassettotheextentthatrealisation oftherelatedbenefitsthroughfuturesurplusisprobable.
3.19 New standards and interpretations not adopted
Anumberofnewstandards,amendmentstostandardsandinterpretationsareeffectiveforannualperiodsbeginning after1October2016,andearlierapplicationispermitted;however,theGrouphavenotearlyappliedthefollowing newstandardsandinterpretationsinpreparingthesestatements.
ThesenewstandardsthatmayberelevanttotheGroupinfuturefinancialperiods,andwhichtheGroupdoesnotplan toearlyadopt,aresetoutbelow.
• SB-FRS 109 replaces most of the existing guidance in SB-FRS 39 Financial Instruments: Recognition and Measurement. It includesrevisedguidanceonclassificationandmeasurementoffinancial instruments,anew expected credit loss model for calculating impairment on financial assets, and new general hedge accountingrequirements.
AsSB-FRS109ismandatoryforadoptionbytheGroupforannualperiodbeginningonorafter1January2018. Wheneffective,SB-FRS109willchangetheexistingaccountingstandardsandguidanceappliedbytheGroup inaccountingforfinancialinstruments,thisstandardisexpectedtoberelevanttotheGroup.TheGroupdoes notplantoadoptthisstandardearly.
FS20
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.19 New standards and interpretations not adopted (Cont’d) • SB-FRS115Revenue from Contracts with Customers.
SB-FRS115was issued inNovember2014andestablishesanewfive-stepmodel thatwill apply to revenue arising from contracts with customers. Under SB-FRS 115, revenue is recognised at an amount that reflects theconsiderationtowhichanentityexpectstobeentitledinexchangefortransferringgoodsorservicestoa customer. The principles in SB-FRS 115 provide amore structured approach tomeasuring and recognising revenue.Thenewrevenuestandardisapplicabletoallentitiesandwillsupersedeallcurrentrevenuerecognition requirementsunderSB-FRS.Eithera fullormodified retrospectiveapplication is required for annualperiods beginningonorafter1January2018withearlyadoptionpermitted.TheGroupiscurrentlyassessingtheimpact ofSB-FRS115toitsfinancialstatement.
• SB-FRS116Leaseseliminates the lessee’sclassificationof leasesaseitheroperating leasesorfinance leases and introducesasingle lesseeaccountingmodel.Applyingthenewmodel,a lessee is requiredtorecognise right-of-use (ROU) assets and lease liabilities for all leaseswith a term ofmore than 12months, unless the underlyingasset isof lowvalue. SB-FRS116substantiallycarriesforwardthelessoraccountingrequirements inSB-FRS17Leases.Accordingly,alessorcontinuestoclassifyitsleasesasoperatingleasesorfinanceleases, and toaccount for these two typesof leasesusing theSB-FRS17Leasesoperating leaseandfinance lease accountingmodelsrespectively.However,SB-FRS116requiresmoreextensivedisclosurestobeprovidedby alessor.
Wheneffective,SB-FRS116replacesexistingleaseaccountingguidance,includingSB-FRS17Leases,INTSB- FRS104Determiningwhether an Arrangement contains a Lease,INTSB-FRS15Operating Leases – Incentives, andINTSB-FRS27Evaluating the Substance of Transactions Involving the Legal Form of a Lease.SB-FRS116 Leases iseffectiveforannualperiodsbeginningonorafter1January2019,withearlyadoptionpermittedifFRS 115Revenue from Contracts with Customersisalsoapplied. TheGroupiscurrentlyassessingthepotentialimpactofadoptingthesenewstandardsandinterpretationsonthe financialstatementsoftheGroup.
FS21
NO
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Groupon1October2016
824
18,520
14,474
12,696
160
263
46,937
Additions
–18
216
649
–3,033
3,916
Reclassification
–632
189
2,198
–(3,019)
–Disposals
––
(3)
(333)
––
(336)
At31March2017
824
19,170
14,876
15,210
160
277
50,517
A
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Tran
sfer
red
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stab
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Groupon1October2016
657
16,930
12,860
11,568
160
–42,175
Depreciationfortheperiod
71
349
533
985
––
1,938
Disposals
––
(3)
(68)
––
(71)
At31March2017
728
17,279
13,390
12,485
160
–44,042
Ca
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ng a
mou
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At1October2016(dateofestablishment)
167
1,590
1,614
1,128
–263
4,762
At31March2017
96
1,891
1,486
2,725
–277
6,475
FS22
NO
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Authorityon1October2016
824
18,520
11,318
12,696
160
182
43,700
Additions
–18
20
649
–3,022
3,709
Reclassification
–632
108
2,198
–(2,938)
–Disposals
––
–(333)
––
(333)
At31March2017
824
19,170
11,446
15,210
160
266
47,076
A
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ed d
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Tran
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Authorityon1October2016
657
16,930
10,389
11,568
160
–39,704
Depreciationfortheperiod
71
349
333
985
––
1,738
Disposals
––
–(68)
––
(68)
At31March2017
728
17,279
10,722
12,485
160
–41,374
Ca
rryi
ng a
mou
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At1October2016(dateofestablishment)
167
1,590
929
1,128
–182
3,996
At31March2017
96
1,891
724
2,725
–266
5,702
4 PR
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FS23
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
5 INTANGIBLE ASSETS
Computer Systems under Systems development Total $’000 $’000 $’000 Group and Authority Cost TransferredonestablishmentoftheGroupon 1October2016 23,595 595 24,190 Additions 1,271 2,801 4,072 Reclassification 1,630 (1,630) – At31March2017 26,496 1,766 28,262 Accumulated amortisation TransferredonestablishmentoftheGroupon 1October2016 19,959 – 19,959 Amortisationfortheperiod 1,800 – 1,800 At31March2017 21,759 – 21,759 Carrying amounts At 1 October 2016 (dateofestablishment) 3,636 595 4,231 At31March2017 4,737 1,766 6,503
6 SUBSIDIARY
Authority 2017 $’000 Unquotedshares,atcost 3,813
Principal activities/ Effective equity interest country of incorporation held by the Authority Name of subsidiary and operation 2017 % SingaporeNetworkInformation Registryofinternet CentrePrivateLimited 1 domainnames/Singapore 100
1 AuditedbyKPMGLLP,Singapore
FS24
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
7 AVAILABLE-FOR-SALE FINANCIAL ASSETS
Group and Authority 2017 $’000 Transferred on establishment of the GroupandAuthorityon1October2016 (netofimpairmentandfairvaluegain) 3,098 Divestment (2,335) At 31 March 2017 763
Investmentinmediafundsrelatestocollaborationwithotherinvestorstofinancethedevelopmentofmediacompanies. Theseinvestmentslastfor10yearsandrepaymenttermsvaryaccordingtothetermsoftheagreements.
8 CASH AND CASH EQUIVALENTS
Group Authority Note 2017 2017 $’000 $’000 GeneralFund 1,101,640 1,089,443 RestrictedFunds 25 19,840 19,840 1,121,480 1,109,283 Cashatbankandonhand - depositsheldwithAccountant-General’s Department(“AGD”) 1,207,507 1,195,310 - depositsheldwithAGDmanagedbythe Authorityonbehalfofotherministries 19 (86,027) (86,027) 1,121,480 1,109,283
TheGroupparticipates in theAGD’sCentralisedLiquidityManagementScheme (“CLM”)whereby theGroup’s cash is pooledtogetherandmanagedcentrallybyAGD,arelatedparty,infixeddeposits.Individualaccountsarestillmaintained fordailytransactionpurposeandfundsaretransferredfromdepositsheldwithAGDwheneverthereareinsufficientfunds for transactional purpose.AGDpays interest on theGroup’s cashbalances participating inAGD’sCLM. The effective interestratewas1.31%.
CashandcashequivalentsoftheGroupandAuthorityincludeanamountof$40,778,000(Note13)earmarkedforpayment ofpensionandmedicalbenefitstopensioners.
FS25
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
9 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Group and Note Authority 2017 $’000 Transferred on establishment of the GroupandAuthorityon1October2016 646,370 Addition 11 Divestment (517,225) Netfairvaluechangerecognisedinincomeorexpenditure 21 (6,605) At31March2017 122,551 Financialassetsatfairvaluethroughprofitorloss - Quotedunittrusts 46,937 - Unquotedunittrusts 75,614 122,551
Theunittrustsareindiversifiedportfoliosofvariousassetclassesmanagedbyprofessionalfundmanagersawardedby AGDundertheDemandAggregationIIandIIISchemes.
10 TRADE AND OTHER RECEIVABLES
Group Authority 2017 2017 $’000 $’000 Tradereceivables 9,036 9,036 Less:Allowanceforimpairmentoftradereceivables (1,158) (1,158) 7,878 7,878 Unbilledreceivables 11,877 11,877 Otherreceivables - amountduefromMCI 50,435 50,435 - duefromastatutoryboard 73,171 73,171 - sundrydebtors 8,264 8,264 - interestreceivablefromAGD 5,420 5,320 157,045 156,945 Advancesanddeposits 3,719 3,719 Loansandreceivables 160,764 160,664 Prepayments 1,090 1,030 161,854 161,694
FS26
11 SHARE CAPITAL
Group and Authority 2017 2017 Number of $’000 shares (’000) TransferredonestablishmentoftheGroupandAuthorityon 1October2016and31March2017 1,201 1,201
On the establishment of IMDAon 1October 2016, share capital of $1,201,000 comprising of 1,201,000 shareswere transferredfromMDAtoIMDA.ThesharesissuedareheldbytheMinisterforFinance,incorporatedbytheMinisterfor Finance(Incorporation)Act.Theholdersofthesesharesareentitledtoreceivedividendsasandwhendeclaredbythe Authority.Thesharescarrynovotingrightsandhavenoparvalue.
12 CAPITAL ACCOUNT
Thecapitalaccountcomprisesthecapitalisationofnetassets/(liabilities)transferredfromtheMDAandcertaindivisionsof IDAon1October2016,thedateofestablishmentoftheGroupandtheAuthorityupontherestructuringofMDAandIDA toformIMDAandGovernmentTechnologyAgency.
13 PROVISION FOR PENSION AND MEDICAL BENEFITS
Theprovisionforpensionandmedicalbenefitsrelatestobenefitspayableuponretirementofofficerswhoweretransferred totheGroupandtheAuthorityfromtheMediaDevelopmentAuthorityofSingaporeandInfo-communicationsDevelopment AuthorityofSingaporeupontheestablishmentoftheGroupandtheAuthorityon1October2016.
TheGroupcontributestothefollowingpost-employmentdefinedbenefitplans:
a. Pensionbenefits–Theplanprovidespensionbenefitstopensionableemployeeswithatleast10yearsofpensionable services,whotransferredtotheAuthorityfromdirectemploymentwiththeSingaporegovernment.
b. Post-retirement benefits – The plan provides its eligible employees and their dependents with post-retirement medicalbenefits.
TheemployeebenefitsplansexposetheGrouptoactuarialrisks,suchaslongevityriskandinterestraterisk.Asat31March 2017,theGroupexpectstopay$40,778,000incontributionstoitsdefinedbenefitplans.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS27
13 PROVISION FOR PENSION AND MEDICAL BENEFITS(CONT’D)
(a) Theamountrecognisedinthestatementsoffinancialpositionisdeterminedasfollows:
Group and Authority 2017 $’000
Presentvalueofobligations 40,778 Comprising: - Current 3,952 - Non-current 36,826 40,778 (b) Theamountsrecognisedinincomeorexpenditureareasfollows:
Group and Authority 2017 $’000 Currentservicecost 2 Interestcost 425 Expensesrecognisedinincomeorexpenditure 427
(c) Theamountsrecognisedinothercomprehensiveincomeareasfollows:
Group and Authority 2017 $’000 Actuarial gain arising from: Financialassumptions 1,757 Experienceadjustment 789 2,546
(d)Movementinthefairvalueofpensionandmedicalbenefitsisasfollows:
Group and Authority 2017 $’000 Transferred on establishment of the GroupandAuthorityon1October2016 44,972 Currentservicecost 2 Interestcost 425 Actuarialgainrecognisedinothercomprehensiveincome (2,546) Benefitspaid (2,075) At31March2017 40,778
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS28
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
13 PROVISION FOR PENSION AND MEDICAL BENEFITS(CONT’D)
TheprincipalassumptionusedindeterminingtheGroupandAuthority’spensionobligationsis:
Group and Authority 2017 Discountrate 2.10%
ThediscountrateusedisbasedontheinterpolatedyieldrateofSingaporeGovernmentBondwithdurationof8years, which is theweighteddurationof futurebenefitpayments. TheSingaporeMortality TableS2004-08M/Fwasused for purposeofthelatestvaluationofpensionliabilities.
Sensitivity analysis
Thecalculationofthedefinedbenefitobligationissensitivetotheassumptionsetoutabove.Thefollowingtablesummarises howtheimpactonthedefinedbenefitobligationattheendofthereportingperiodwouldhaveincreased/(decreased)as aresultofachangeintheassumptionby0.25percent.
Defined benefit obligation 0.25 percent 0.25 percent increase decrease $’000 $’000 Group and Authority 31 March 2017 Discountrate (709) 731
Theabovesensitivitiesarebasedontheaveragedurationofthebenefitobligationdeterminedatthedateofthelastfull actuarialvaluationat31March2017andareappliedtoadjustthedefinedbenefitobligationattheendofthereporting period for theassumptions concerned.Whilst theanalysisdoesnot takeaccountof the full distributionof cashflows expectedundertheplan,itdoesprovideanapproximationtothesensitivityoftheassumptionsshown.
14 TRADE AND OTHER PAYABLES Group Authority 2017 2017 $’000 $’000 Tradeandotherpayables 24,682 24,698 Accruedoperatingexpenses 25,100 24,787 Accrueddevelopmentexpenses 26,885 26,885 Depositsreceived 1,391 1,036 Accruedpayrollrelatedcosts 32,337 32,040 110,395 109,446
FS29
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
15 DEFERRED INCOME
Deferred incomemainlycomprises licenseand related fees thatwillbe recognised in incomeorexpenditureover the remainingperiodofthelicence,whichoccurssubsequenttoyearend.
16 GRANTS RECEIVED IN ADVANCE
General Restricted Fund Funds Total Note 2017 2017 2017 $’000 $’000 $’000 Group and Authority Transferred on establishment of the GroupandAuthorityon1October2016 - grantsreceivedinadvance 33,740 8,910 42,650 - grantsreceivables – (10,577) (10,577) 33,740 (1,667) 32,073 Receivedduringtheperiod 33,395 43,766 77,161 Transfertodeferredcapitalgrants 17 (3,438) (3,188) (6,626) Transferfromotherdeferredgrants 18 – 653 653 Transfertoincomeorexpenditure - governmentgrants (25,844) (33,172) (59,016) At31March2017 37,853 6,392 44,245
17 DEFERRED CAPITAL GRANTS
General Restricted Fund Funds Total Note 2017 2017 2017 $’000 $’000 $’000 Group and Authority Transferred on establishment of the GroupandAuthorityon 1October2016 5,696 10 5,706 Transferfromgrantsreceivedinadvance 16 3,438 3,188 6,626 Transfertoincomeorexpenditure - deferredcapitalgrantsamortised (1,554) (598) (2,152) At31March2017 7,580 2,600 10,180
FS30
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
18 OTHER DEFERRED GRANTS
Restricted Funds Note 2017 $’000 Group and Authority Transferred on establishment of the GroupandAuthorityon1October2016 964 Transfertograntsreceivedinadvance 16 (653) At 31 March 2017 311
19 TRUST AND AGENCY FUNDS
Detailsofthetrustandagencyfundsaresetoutbelowandhavebeenpreparedfromtherecordsofthesefundsandreflect onlytransactionshandledbytheGroupandtheAuthority:
Thereceiptsandexpenditureforthefinancialperiodaretakendirectlytothefunds’accounts,andthenetassetsofthese fundsatthereportingdateareasfollows:
Group and Authority 2017 $’000 PSB 82,261 Others 8,446 90,707
PSB Others Total 2017 2017 2017 $’000 $’000 $’000
Group and Authority Transferred on establishment of the GroupandAuthorityon1October2016 75,319 5,752 81,071 Receipts/receivables - governmentgrants 58,593 12,987 71,580 Deferredcapitalgrants – 12 12 Less: Fundsutilisedintheperiod (51,651) (10,305) (61,956) At31March2017 82,261 8,446 90,707 Representedby: Cashandcashequivalents 77,233 8,794 86,027 Otherassets 24,937 136 25,073 Currentliabilities (19,909) (484) (20,393) Netassets 82,261 8,446 90,707
FS31
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
20 OTHER INCOME
Group Authority 1 October 2016 1 October 2016 (date of (date of establishment) establishment) to 31 March 2017 to 31 March 2017 $’000 $’000
Subscriptionfeesrefunded 1,185 1,185 Others 164 221 1,349 1,406
21 NET LOSS ON FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Group and Note Authority 2017 $’000
Netfairvaluechangerecognisedinincomeorexpenditure 9 6,605 Less:FairvaluelossrecoverablefromGovernmentTechnologyAgency (4,252) 2,353
FollowingtherestructuringofMDAandIDAtoformIMDAandGovernmentTechnologyAgency(“GovTech”),theassets, liabilitiesandequityasat30September2016wasallocatedtoIMDAandGovTechinaccordancewiththebasisasagreed (“agreement”) by both parties. In accordance with the aforementioned agreement, the Group is entitled to recover $4,252,000fromGovTechrelatingtothefairvaluelossfromdivestmentoffinancialassetsatfairvaluethroughprofitand losswhichwastransferredfromIDA.
22 EMPLOYEE COMPENSATION
Group Authority 1 October 2016 1 October 2016 (date of (date of establishment) establishment) Note to 31 March 2017 to 31 March 2017 $’000 $’000
Wagesandsalaries 52,273 51,461 Employer’scontributiontoCentralProvidentFund 5,551 5,475 Pensionandmedicalbenefits 13 427 427 Otherbenefits 990 990 59,241 58,353
FS32
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
23 DEVELOPMENT EXPENSES
General Restricted Fund Funds 2017 2017 Total $’000 $’000 $’000 Group and Authority iN2015Masterplan 4,656 11,746 16,402 InfocommMedia2025 – 9,816 9,816 NextGenerationNationalBroadbandNetwork – 8,426 8,426 FibreReadyScheme – 1,576 1,576 DigitalTelevision(“DTV”)AssistanceScheme 9,215 – 9,215 SingaporeMediaFusionPlan(“SMFP”) 4,205 653 4,858 Others 2,892 – 2,892 20,968 32,217 53,185
iN2015Masterplan
The IntelligentNation2015 (“iN2015”)Masterplan isSingapore’s long-termstrategic info-communicationsmasterplan tofurtherenhancequalityoflifeandcreatenewnationalcompetitiveadvantagethroughinfocommunications.Theplan seekstoenrichthelivesofthepeople,enhanceSingapore’seconomiccompetitivenessandincreasethegrowthofthe info-communicationsindustry.
InfocommMedia2025
InfocommMedia2025setsouttocreateagloballycompetitiveinfocommmediaecosystemthatenablesandcomplements Singapore’sSmartNationVision,effectseconomicandsocialtransformation,andcreatesenrichingandcompellingcontent.
NextGenerationNationalBroadbandNetwork
TheNextGenerationNationalBroadbandNetwork(“NextGenNBN”)isanextgenerationnationaldigitalcommunication network. The Next Gen NBN will entrench Singapore’s Infocomm hub status and open the doors to new economic opportunities,businessgrowthandsocialvibrancyforthecountry.TheNextGenNBNwillofferpervasive,competitively priced,ultra-highbroadbandspeedsof1Gbpsandbeyond.
DTVAssistanceScheme
TheDTVAssistanceSchemewasimplementedtohelplow-incomehouseholdsmaketheswitchtodigitalTVsothatthey cancontinuetowatchtheirfavouritefree-to-airTVprogrammes.
SingaporeMediaFusionPlan
TheSingaporeMediaFusionPlan’s (SMFP)objective is tostrengthen thebuildingblocksof themediaecosystemand supportthecreationofinnovativecontent,applicationsandserviceswithglobalappeal.
FS33
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
24 PROVISION FOR CONTRIBUTION TO CONSOLIDATED FUND
ThecontributiontotheConsolidatedFundisbasedon17%ofthenetsurplusoftheAuthority.
FollowingtherestructuringoftheMDAandIDA,thenetdeficitpositionof$100,567,000fromMDAwasbroughtforward totheAuthorityon1October2016.
With net deficit of $22,088,000 recognised in the current period, the Authority has remaining unrecognised deficits of$122,655,000atthereportingdatewhichcanbecarriedforwardandusedtooffsetagainstfuturecontributionstothe ConsolidatedFund.
25 NET ASSETS OF RESTRICTED FUNDS
Group and Note Authority 2017 $’000
Property,plantandequipment 2,600 Available-for-salefinancialassets 763 Non-current assets 3,363 Cashandcashequivalents 8 19,840 Tradeandotherreceivables 1,216 Current assets 21,056 Total assets 24,419 Tradeandotherpayables 15,116 Grantsreceivedinadvance 16 6,392 Deferredcapitalgrants 17 2,600 Otherdeferredgrants 18 311 Current liabilities 24,419 Total liabilities 24,419 Net assets –
26 COMMITMENTS
(a) Capital commitments
Capitalexpenditurescontractedforatthereportingdatebutnotrecognisedinthefinancialstatementsareasfollows: Group and Authority 2017 $’000 Property,plantandequipment 2,217
FS34
26 COMMITMENTS(CONT’D)
(b) Non-cancellable operating lease commitments
TheGroupleasesofficepremisesundernon-cancellableoperatingleaseagreements.Theleaseshavevaryingterms, escalationclausesandrenewalrights.
Thefutureminimumleasepayableundernon-cancellableoperatingleasescontractedwithanotherstatutoryboardat thereportingdatebutnotrecognisedasliabilities,areasfollows: Group and Authority 2017 $’000 Notlaterthanoneyear 2,462 Betweenoneandfiveyears 724 3,186
(c) Restricted Funds
ThestatementsshownbelowrepresentstheamountcommittedagainstamountallocatedtoRestrictedFunds. Group and Authority 2017 $’000 Amountallocated 1,619,820 Amount utilised - Developmentexpenses (33,864) - Property,plantandequipment (3,079) (36,943) Amountcommittedbutyettobeutilised (55,030) Amountuncommitted 1,527,847
(d) Financial assets available-for-sale
Commitmentsforfinancialassetsavailable-for-salemanagedbyfundmanagersatreportingdateareasfollows: Group and Authority 2017 $’000 Amountunutilised 2,057
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS35
27 RELATED PARTY TRANSACTIONS
Forthepurposeofthesefinancialstatements,partiesareconsideredtoberelatedtotheAuthorityiftheAuthorityhasthe ability,directlyor indirectly, tocontrol thepartyorexercisesignificant influenceover theparty inmakingfinancialand operating decisions, or vice versa, or where the Authority and the party are subject to common control or common significantinfluence.Relatedpartiesmaybeindividualsorotherentities.
(a) Significant related party transactions
SomeoftheAuthority’stransactionsandarrangementsarewithrelatedpartiesandtheeffectofthesetransactionsand arrangementsbetweenthepartiesarereflectedinthesefinancialstatements.
TheamountduetoasubsidiaryrelatestofundsplacedbythesubsidiarywiththeAuthorityastheAuthoritymanages thefundsbyinvestingindebtandequitysecuritiesonapooledbasisforupto5years.Theoutstandingbalancedue toasubsidiaryisunsecuredandbearsinterestatafixedrateof2%perannum.
TheamountduefromasubsidiarymainlyrelatestorechargesofcertainexpensesfromtheAuthority.Theoutstanding balanceduefromasubsidiaryisunsecured,interest-freeandrepayableondemand.
Theremainingbalanceswithrelatedpartiesareunsecured,interest-freeandrepayableondemand.
Duringthefinancialperiod,otherthandisclosedelsewhereinthefinancialstatements,thesignificanttransactionswith relatedpartieswhichwerecarriedoutinthenormalcourseofbusinessareasfollows: Authority 1 October 2016 (date of establishment) to 31 March 2017 $’000 MCI ServicesandexpensespaidtoMCI (575) ComputerandInfo-technologyrelatedexpenses (2,843) ExpensespaidonbehalfofMCI (755) Subsidiary Professionalservicefeesincome 7 Rentalincome 47 Other income 13 Recoveryofmanpowercharges 647 Interestexpenses (100) Other Ministries and Statutory Boards ServicesandexpensespaidtootherMinistries (6,125) ServicesandexpensespaidtootherStatutoryBoards (4,710) ComputerandInfo-technologyrelatedexpenses (309) Operatingleaseexpense (2,266)
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS36
27 RELATED PARTY TRANSACTIONS (CONT’D)
(b) Compensation of key management personnel
Keymanagementpersonnelremunerationisasfollows: Group Authority 1 October 2016 1 October 2016 (date of (date of establishment) establishment) Note to 31 March 2017 to 31 March 2017 $’000 $’000 Wagesandsalaries 2,453 2,381 Employer’scontributiontoCentralProvidentFund 174 168 Boardmembers’allowances 172 172 2,799 2,721
28 FINANCIAL RISK MANAGEMENT
Overview
TheGrouphasexposuretomarketrisk(includingcurrency,priceandinterestraterisk),creditriskandliquidityriskfromits useoffinancialinstruments.
Risk management framework
TheGroupisresponsibleforsettingtheobjectivesandunderlyingprinciplesoffinancialriskmanagementfortheGroup. TheBoardthenestablishesthedetailedpoliciessuchasexposurelimits,riskidentificationandmeasurement.
TheGroupmeasuresactualexposureagainstthelimitssetandpreparesregularreportsforthereviewoftheBoard.The informationpresentedbelowisbasedoninformationreceivedbykeymanagement.
(a) Market risk
Market risk refers to the risk arising from uncertainty in the future values of a financial instrument, resulting from movementsinfactorssuchasequityprices,foreignexchangeratesandmarketinterestrates.TheGroup’sexposureto eachofthesefactorsispresentedinthefollowingparagraphs.
Currency risk
TheGroupoperatesmainlyinSingapore.TheGroup’soperationsarenotexposedtosignificantforeigncurrencyrisks asithasnosignificanttransactionsdenominatedinforeigncurrencies.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS37
28 FINANCIAL RISK MANAGEMENT (CONT’D)
(a) Market risk (Cont’d)
Price risk
Priceriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatearisingfromchanges inmarketplaces(otherthanthosearisingfrominterestrateriskorcurrencyrisk),whetherthosechangesarecausedby factorsspecifictotheindividualfinancialinstrumentsoritsissuer,orfactorsaffectingsimilarfinancialinstrumentstraded inthemarket.
TheGroupisexposedtopriceriskarisingfromitsinvestmentsinfundinvestmentscategorisedasfinancialassetsatfair valuethroughprofitorloss.Theriskismanagedthroughfunddiversificationacrossdifferentassetclassesinvarious markets.Themarketriskassociatedwiththeseinvestmentsisthepotentiallossinfairvalueresultingfromthedecrease inthenetassetvalueofunittrusts.
Sensitivity analysis A10%decreaseintheunderlyingmarketpricesornetassetvalueofunittrustsatthereportingdate,withallother variablesremainconstant,woulddecreasenetsurplusordeficitbythefollowingamount: Group and Authority 2017 $’000 Quotedunittrusts 4,694 Unquotedunittrusts 7,561
A10%increaseintheunderlyingmarketpricesornetassetvalueofunittrustswouldhavehadtheequalbutopposite effecttotheamountsshownabove,onthebasisthatallothervariablesremainconstant.
Interest rate risk
TheGroup’sexposuretointerestrateriskforchangesininterestratesarisesprimarilyfromdepositsheldwithAGD.
TheGroupperiodicallyreviewsandmonitorsinterestratefluctuationstoensurethattheexposuretointerestrateriskis withinacceptablelimits.SurplusfundsareplacedwithAGD.
ThetablebelowsetouttheGroup’sexposuretointerestraterisks.
Group Authority Note 2017 2017 $’000 $’000 Variable rate instrument DepositsheldwithAGD 8 1,121,480 1,109,283
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS38
28 FINANCIAL RISK MANAGEMENT (CONT’D)
(a) Market risk (Cont’d)
Cash flow sensitivity analysis for variable rate instruments
Achangeof100basispointsininterestratesatthereportingdatewouldhaveincreased/(decreased)netsurplusor deficitbytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularforeigncurrencyrates, remainconstant. Net surplus or deficit 100bp 100bp increase decrease $’000 $’000 Group 31 March 2017 Variablerateinstruments 11,215 (11,215) Authority 31 March 2017 Variablerateinstruments 11,093 (11,093)
(b) Credit risk
Creditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationresultinginfinanciallosstothe GroupandtheAuthority.ThecarryingamountsoftheGroupandtheAuthority’smajorclassesoffinancialassetssuchas cashandcashequivalents,tradeandotherreceivables(excludingprepayments),amountduefromasubsidiary,financial assetsavailable-for-saleandfinancialassetsatfairvaluethroughprofitorlossrepresentsthemaximumexposureto creditrisk.
CashandcashequivalentsaremainlydepositsheldwithAGDandbankswhichhavehighcredit-ratingsasdetermined by international credit-rating agencies. Trade and other receivables that are neither past due nor impaired are substantiallyentitieswithgoodcollectiontrackrecordswiththeGroup. TheGroup limits its credit riskexposure in respectof investmentsbyplacing its fundsonlywithprofessional fund managers recommendedby an investment consultantor awardedbyAGDunder theDemandAggregation II and IIIScheme. TheGroupandtheAuthorityhasnocollateralinrespectoftheseinvestments.Duringtheperiodended31March2017, noimpairmentwasrecognisedontheGroup’sandtheAuthority’savailable-for-salefinancialassets.
TheGroupadopts thepolicyofdealingonlywithcompaniesofappropriatecredithistory,andobtainingsufficient securitywhereappropriatetomitigatecreditrisk.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS39
28 FINANCIAL RISK MANAGEMENT (CONT’D)
(b) Credit risk (Cont’d) Theageingofloansandreceivablesareasfollows: Group Authority* Impairment Funds Impairment Gross loss Gross loss 2017 2017 2017 2017 $’000 $’000 $’000 $’000 Notpastdue 161,226 (1,103) 161,826 (1,103) Pastduelessthan3months 675 (55) 675 (55) Pastdue3to6months 21 – 21 – 161,922 (1,158) 162,522 (1,158)
* includes amount due from a subsidiary
Themovement in allowance for impairment loss in respect of loans and receivables during the financial period is asfollows: Group and Authority 2017 $’000 Transferred from establishment of the GroupandAuthorityon1October2016 1,360 Chargetoincomeorexpenditure 128 Utilisedduringtheperiod (330) At31March2017 1,158
Theimpairmentintradeandotherreceivablesisduetoseveraldebtorswhohavenotpaidtheiroutstandingamounts despite reminders. The Group and the Authority wrote-off the balances which have been assessed as, and deemeduncollectible.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS40
28 FINANCIAL RISK MANAGEMENT (CONT’D)
(c) Liquidity risk
Liquidity risk is the risk of not being able to meet financial obligations arising from fluctuations in cash flow of financialassets.
TheGroupandtheAuthorityarenotsubjecttoregulatoryrequirementtomaintainminimumcashlevel.Itisthepolicy of theGroup and the Authority tomaintain a level of cash deemed adequate by themanagement to finance its operationsandmitigatetheeffectsoffluctuationsincashflows.
ThefinancialliabilitiesoftheGroupandtheAuthorityarepresentedinthestatementsoffinancialposition.Thecurrent liabilitiesarenon-interestbearingandrepayablewithinoneyearfromtheendofthereportingperiod.Thefinancial assetsoftheGroupandtheAuthorityareabletomeetthesefinancialobligations.
ThefollowingarethecontractualmaturitiesoffinancialliabilitiesoftheGroupandAuthorityincludingestimatedinterest paymentsandexcludingtheimpactofnettingarrangements:
Cash flows Carrying Contractual Within Between one amount cash flows a year to five years $’000 $’000 $’000 $’000 Group 2017 Tradeandotherpayables 110,395 110,395 110,395 – Authority 2017 Tradeandotherpayables 109,446 109,446 109,446 – Amountduetoasubsidiary 10,000 10,200 – 10,200 119,446 119,646 109,446 10,200
Itisnotexpectedthatthecashflowsincludedinthematurityanalysiscouldoccursignificantlyearlier,oratsignificantly differentamounts.
(d) Capital management
TheGroupandtheAuthoritymanage itscapital toensurethat theGroupandtheAuthoritywillcontinueasgoing concern.ThecapitalstructureoftheGroupandtheAuthoritycompriseonlyequityasreflectedinthestatementsof changesinequity.
TheGroupand theAuthority review itscapital structureperiodically.Aspartof this review, thecostofcapitaland associatedrisksareconsidered.TheAuthorityisnotsubjecttoanycapitalrequirementsundertheInfo-communications MediaDevelopmentAuthorityAct(No.22of2016)oranyotherexternallyimposedcapitalrequirements,exceptfor thosemandatedbytheMinistryofFinance.
(e) Accounting classifications and fair values
Determination of fair values
Financial assets at fair value through profit and loss and financial assets available-for-sale
Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarketisdeterminedbyusingvaluationtechniques. TheGroupandtheAuthorityusesavarietyofmethodsandmakesassumptionsthatarebasedonmarketconditions existingateachreportingdate.Othertechniques,suchasestimateddiscountedcashflows,areusedtodeterminefair valuefortheremainingfinancialinstruments.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS41
28 FINANCIAL RISK MANAGEMENT (CONT’D)
(e) Accounting classifications and fair values (Cont’d)
Determination of fair values(Cont’d) Thefairvalueofthequotedunittrustsisbasedonthemarketbidprice.Asthefundisnotlistedinanactivemarket, theseinstrumentsareincludedinLevel2. Thefairvalueofunquotedunittrustsisbasedonrealisationpriceprovidedbytheadministratorofthoseunittrusts. TheseinstrumentsareincludedinLevel3.
Other financial assets and liabilities
Thecarryingamountsoftradeandotherreceivables,tradeandotherpayablesandamountdueto/fromasubsidiary areassumedtoapproximatetheirfairvaluesbecauseoftheshortperiodtomaturity.
Fair value hierarchy
Thetablebelowpresentsthefairvaluemeasurementsforfinancialassetsandfinancialliabilities,bythelevelsinthefair valuehierarchybasedontheinputstovaluationtechniques.
Thedifferentlevelsaredefinedasfollows:
(i) quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities(Level1); (ii) inputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly (i.e.prices)orindirectly(i.e.derivedfromprices)(Level2);and (iii)inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs)(Level3).
Valuation technique and key unobservable input
Thefollowingisalistofthevaluationtechniquesandthekeyunobservableinputsusedinthedeterminationoffair valueoftheavailable-for-saleinvestmentsandfinancialassetsatfairvaluethroughprofitandloss.
Valuation technique Inter-relationship between significant unobservable inputs and fair value measurement Theestimatedfairvaluewoulddecreaseif: Valuationofrecentacquisitionconsideration • valuationofrecentacquisitionconsiderationwaslower; Valuationofrealisationprice • valuationofrealisationpricewaslower
Managementconsiders thatchangingoneormoreof thesignificantunobservable inputsusedtoother reasonably possiblealternativeassumptionswouldnotresultinasignificantchangeintheestimatedfairvalue.
Key unobservable inputs
Keyunobservableinputscorrespondto:
• Fundmanager’sjudgementwithregardtotheassumptionthattherecentacquisitionconsiderationarereflective offairvalueofinvestment. • Fundmanager’sassessmentthattherearenomajorchangesinthebusinessandmarketenvironmentthatwould impactthevalueoftheinvestmentmaterially. • Fundmanager’sjudgementwithregardtotherealisationpriceusedindeterminingthevalueofunittrust.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS42
28 F
INA
NCI
AL
RISK
MA
NA
GEM
ENT (CONT’D)
NO
TES
TO T
HE
FIN
AN
CIA
L ST
ATEM
ENTS
As
at 3
1 M
arch
201
7
Thecarryingamountsandfairvaluesoffinancialassetsandfinancialliabilities,includingtheirlevelsinthefairvaluehierarchyareasfollows.Itdoesnotincludefairvalueinformationforfinancialassetsand
financialliabilitiesnotmeasuredatfairvalueifthecarryingamountisareasonableapproximationoffairvalue.
Ca
rryi
ng a
mou
nt
Fair
valu
e
Oth
er
Des
igna
ted
Loan
s an
d fin
anci
al
at fa
ir A
vaila
ble
N
ote
rece
ivab
les
liabi
litie
s va
lue
-for-s
ale
Tota
l Le
vel 1
Le
vel 2
Le
vel 3
To
tal
$’00
0 $’
000
$’00
0 $’
000
$’00
0 $’
000
$’00
0 $’
000
$’00
0
G
roup
31 M
arch
201
7
A
sset
s
Fi
nanc
ial a
sset
s m
easu
red
at
fair
valu
e
Available-for-salefinancialasset
7–
––
763
763
––
763
763
Financialassetatfairvalue
throughprofitorloss
9–
–122,551
–122,551
–46,937
75,614
122,551
––
122,551
763
123,314
Fina
ncia
l ass
ets
not m
easu
red
at
fair
valu
e
Cashandcashequivalents
81,121,480
––
–1,121,480
Tradeandotherreceivables*
10
160,764
––
–160,764
1,282,244
––
–1,282,244
Liab
ilitie
s
Fi
nanc
ial l
iabi
litie
s no
t
mea
sure
d at
fair
valu
e
Tradeandotherpayables
14
–110,395
––
110,395
*excludesprepayments
FS43
28 F
INA
NCI
AL
RISK
MA
NA
GEM
ENT (CONT’D)
NO
TES
TO T
HE
FIN
AN
CIA
L ST
ATEM
ENTS
As
at 3
1 M
arch
201
7
Ca
rryi
ng a
mou
nt
Fair
valu
e
Oth
er
Des
igna
ted
Loan
s an
d fin
anci
al
at fa
ir A
vaila
ble
N
ote
rece
ivab
les
liabi
litie
s va
lue
-for-s
ale
Tota
l Le
vel 1
Le
vel 2
Le
vel 3
To
tal
$’00
0 $’
000
$’00
0 $’
000
$’00
0 $’
000
$’00
0 $’
000
$’00
0
A
utho
rity
31
Mar
ch 2
017
A
sset
s
Fi
nanc
ial a
sset
s m
easu
red
at
fair
valu
e
Available-for-salefinancialasset
7–
––
763
763
––
763
763
Financialassetatfairvalue
throughprofitorloss
9–
–122,551
–122,551
–46,937
75,614
122,551
–
–122,551
763
123,314
Fina
ncia
l ass
ets
not m
easu
red
at
fair
valu
e
Cashandcashequivalents
81,109,283
––
–1,109,283
Tradeandotherreceivables*
10
160,664
––
–160,664
Amountduefromasubsidiary
700
––
–700
1,270,647
––
–1,270,647
Liab
ilitie
s
Fi
nanc
ial l
iabi
litie
s no
t mea
sure
d
at fa
ir va
lue
Tradeandotherpayables
14
–109,446
––
109,446
Amountduetoasubsidiary
–
10,000
––
10,000
–119,446
––
119,446
*excludesprepayments
FS44
29 SUBSEQUENT EVENT
On31May2017,theAuthorityissued1,700,000sharesof$1persharetofundtransitionalexpensesincurredasaresultof therestructuringofMDAandIDAtoformIMDAandGovernmentTechnologyAgency.Thesharesissuedareheldbythe MinisterforFinance,incorporatedbytheMinsterforFinance(Incorporation)Act.Theholdersofthesesharesareentitled toreceivedividendsasandwhendeclaredbytheAuthority.Thesharescarrynovotingrightsandhavenoparvalue.
Subsequent to the share issuance on 31 May 2017, the Authority has share capital of $2,901,000 which comprises 2,901,000shares.
30 COMPARATIVE INFORMATION
NocomparativefigureshavebeenpresentedasthisisthefirstsetoffinancialstatementspreparedbytheGroupsincethe dateofitsestablishmentwiththerestructuringofMDAandIDAtoformIMDAandGovernmentTechnologyAgency.
NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017
FS45