Investor Presentaiton
(b) Impairment
Financial assets measured at amortized cost are tested for impairment when there are indicators of
possible impairment. When a significant adverse change has occurred during the period in the
expected timing or amount of future cash flows from the financial asset or group of assets, a write-down
is recognized in net earnings. The write-down reflects the difference between the carrying
amount and the higher of:
i) The present value of the cash flows expected to be generated by the asset or group of assets;
ii) The amount that could be realized by selling the asset or group of assets;
iii) The net realizable value of any collateral held to secure repayment of the asset
or group of assets.
When events occurring after the impairment confirm that a reversal is necessary, the reversal is
recognized in net earnings up to the amount of the previously recognized impairment.
(c) Risks
Transacting in financial instruments exposes the Authority to certain financial risks and uncertainties.
These risks include:
i)
Credit risk: The Authority is exposed to credit risk in connection with the collection of its
accounts receivable. The Authority mitigates this risk by performing continuous evaluation
of its accounts receivables.
ii) Liquidity risk: The Authority's exposure to liquidity risk is dependent on the collection of
accounts receivable or raising of funds to meet commitments and sustain operations. The
Authority controls liquidity risk by management of working capital, cash flows and
availability of borrowing facilities.
iii) Market risk: The Authority's investment in publicly traded securities exposes the company to
market risk since these equity investments are subject to price fluctuations in the open market.
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