· other expenditure 5,496 7,719 1,694 2,013 7,190 9,732 fees for ... polytechnic act (chapter...

Temasek Polytechnic

Financial statements

Year ended 31 March 2015

FS1

The accompanying notes form an integral part of these financial statements.

Statement of financial position

As at 31 March 2015

Note 2014/15 2013/14

$’000 $’000

Accumulated surplus and reserve

General fund 9 174,723 234,610

Restricted funds 9 35,759 34,442

Fair value reserve 6,846 2,357

217,328 271,409

Temasek Polytechnic Endowment Fund 10 17,798 10,359

Other funds 11 9,285 9,504

Net assets of other funds 11 (9,285) (9,504)

– –

235,126 281,768

Non-current assets

Property, plant and equipment 4 621,769 560,109

Investments in subsidiaries 5 – –

Available-for-sale investments 6 29,149 64,014

650,918 624,123

Current assets

Available-for-sale investments 6 94,773 64,182

Trade and other receivables 7 8,577 5,666

Prepayments 326 491

Government grant receivables 14,595 18,332

Cash and cash equivalents 8 199,765 245,493

318,036 334,164

Total assets 968,954 958,287

Non-current liabilities

Fees received in advance 12 13,087 13,562

Deferred capital grants - Government 13 619,478 557,280

Deferred capital grants - Others 14 2,279 2,825

Government grants received in advance 15 58,805 49,373

693,649 623,040

Current liabilities

Government grants received in advance 15 326 187

Trade and other payables 16 39,853 53,292

40,179 53,479

Total liabilities 733,828 676,519

Net assets 235,126 281,768

Temasek Polytechnic



FS2


Statement of comprehensive income


General fund Restricted funds Total

Note 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

$’000 $’000 $’000 $’000 $’000 $’000

Operating income

Student fees 44,811 44,614 – – 44,811 44,614

Other income 23 5,993 4,844 585 579 6,578 5,423

Donations 33 56 1,085 892 1,118 948

Courses, projects, seminars and talks 6,254 4,765 1,793 1,783 8,047 6,548

57,091 54,279 3,463 3,254 60,554 57,533

Operating expenses

Salaries, CPF and other related costs 200,078 197,967 1,307 1,243 201,385 199,210

Depreciation 4 40,519 33,622 4 11 40,523 33,633

Repairs, maintenance and utilities 23,248 23,162 263 212 23,511 23,374

Property, plant and equipment expensed off 3,766 4,015 40 4 3,806 4,019

Teaching materials and resources 4,063 4,385 2 – 4,065 4,385

Student welfare 3,419 3,197 – – 3,419 3,197

IT and information communication 701 744 49 39 750 783

Rental 861 908 651 747 1,512 1,655

Consultancy 906 1,073 – – 906 1,073

Other expenditure 5,496 7,719 1,694 2,013 7,190 9,732

Fees for fund managers 177 175 – – 177 175

Courses, projects, seminars and talks 5,998 4,856 1,819 1,652 7,817 6,508

289,232 281,823 5,829 5,921 295,061 287,744

Temasek Polytechnic



FS3


Statement of comprehensive income (Cont’d)



Note 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

$’000 $’000 $’000 $’000 $’000 $’000

Operating deficit 17 (232,141) (227,544) (2,366) (2,667) (234,507) (230,211)

Non-operating income/(expense)

Interest income 18 4,244 4,521 835 488 5,079 5,009

Investment income 19 125 2,386 – – 125 2,386

(Loss)/Gain on disposal of property, plant and equipment (272) 124 – – (272) 124

Deficit before grants (228,044) (220,513) (1,531) (2,179) (229,575) (222,692)

Grants

Deferred capital grants amortised:

Government 13 40,878 35,575 41 7 40,919 35,582

Others 14 1,165 1,103 – – 1,165 1,103

Operating grants:

Government 20 126,076 167,752 2,807 2,892 128,883 170,644

Others 38 13 – – 38 13

168,157 204,443 2,848 2,899 171,005 207,342

(Deficit)/Surplus for the year (59,887) (16,070) 1,317 720 (58,570) (15,350)

Temasek Polytechnic



FS4


Statement of comprehensive income (Cont’d)



2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

$’000 $’000 $’000 $’000 $’000 $’000

(Deficit)/Surplus for the year (59,887) (16,070) 1,317 720 (58,570) (15,350)

Other comprehensive income

Items that are or may be reclassified

subsequently to profit or loss:

Net change in fair value of available-for-sale financial assets 5,078 (2,858) (589) (74) 4,489 (2,932)

5,078 (2,858) (589) (74) 4,489 (2,932)

Total comprehensive income for the year (54,809) (18,928) 728 646 (54,081) (18,282)

Temasek Polytechnic



FS5


Statement of changes in accumulated surplus and reserve


General

fund

Restricted

fund

Fair value

reserve Total

$’000 $’000 $’000 $’000

At 1 April 2013 250,680 33,722 5,289 289,691

Total comprehensive income for the year (16,070) 720 (2,932) (18,282)

At 31 March 2014 234,610 34,442 2,357 271,409

At 1 April 2014 234,610 34,442 2,357 271,409

Total comprehensive income for the year (59,887) 1,317 4,489 (54,081)

At 31 March 2015 174,723 35,759 6,846 217,328

Temasek Polytechnic



FS6


Statement of cash flows


Note 2014/15 2013/14

$’000 $’000

Cash flows from operating activities

Deficit before grants (229,575) (222,692)

Adjustments for:

Special projects and other grants income (2,517) –

Depreciation of property, plant and equipment 4 40,523 33,633

Goods and services tax (19,611) (18,941)

Fees for fund managers 177 175

Interest income 18 (5,079) (5,009)

Investment loss/(income) 19 (125) (2,386)

Amortisation of fees received in advance (475) –

Loss/(Gain) on disposal of property, plant and equipment 272 (124)

(216,410) (215,344)

Changes in:

Trade and other receivables (1,306) 287

Prepayment 165 30

Fees received in advance – 8,529

Trade and other payables (21,070) (13,608)

Net cash used in operating activities (238,621) (220,106)

Cash flows from investing activities

Interest received 3,913 5,009

Dividend income from available-for-sale investments – 655

Cash balances with fund managers 1,322 (549)

Acquisition of available-for-sale investments (11,323) (13,193)

Proceeds from disposal of available-for-sale investments 20,000 –

Proceeds from sale of property, plant and equipment 88 235

Purchase of property, plant and equipment (98,528) (86,134)

Net cash used in investing activities (84,528) (93,977)

Cash flows from financing activities

Capital grants received from Government 8,002 44,128

Goods and services tax grants received from Government 19,611 18,941

F&E and IT grants received from Government 25,476 25,774

MOE Bursary received 3,532 2,593

Matching grant received from Government as Endowment

Fund 10 3,939 2,151

Operating grants received from Government 211,021 208,335

Special projects and other grants received 3,662 2,855

Donations received for Bursary & Scholarships 10 3,500 1,850

Net cash from financing activities 278,743 306,627

Net increase/(decrease) in cash and cash equivalents (44,406) (7,456)

Cash and cash equivalents at beginning of year 243,115 250,571

Cash and cash equivalents at end of year 8 198,709 243,115

Temasek Polytechnic



FS7

Notes to the financial statements

These notes form an integral part of the financial statements.

The financial statements were authorised for issue by the Board of Governors on 18 June 2015.

1 Domicile and activities

Temasek Polytechnic (the “Polytechnic”) was established in 1990 under the Temasek

Polytechnic Act (Chapter 323A). It is domiciled in the Republic of Singapore and its campus is

situated at 21 Tampines Avenue 1, Singapore 529757.

The principal activities of the Polytechnic are to provide instruction, training and research in

technology, science, commerce, arts and other subjects of learning.

2 Basis of preparation

2.1 Statement of compliance

The financial statements have been prepared in accordance with the applicable requirements of

Temasek Polytechnic Act, Chapter 323A, the Singapore Charities Act, Chapter 37 (the

“Charities Act”) and Singapore Statutory Board Financial Reporting Standards (“SB-FRS”).

SB-FRS includes Statutory Board Financial Reporting Standards, Interpretations of SB-FRS

(“INT SB-FRS”) and SB-FRS Guidance Notes as promulgated by the Accountant-General.

2.2 Basis of measurement

The financial statements have been prepared on the historical cost basis except for certain

financial assets and financial liabilities which are stated at fair value.

2.3 Functional and presentation currency

The financial statements are presented in Singapore dollars which is the Polytechnic’s

functional currency. All financial information is presented in Singapore dollars, unless

otherwise stated.

2.4 Use of estimates and judgements

The preparation of financial statements in conformity with SB-FRSs requires management to

make judgements, estimates and assumptions that affect the application of accounting policies

and the reported amounts of assets, liabilities, income and expenses. Actual results may differ

from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimates are revised and in any

future periods affected.

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FS8

Measurement of fair values

A number of the Polytechnic’s accounting policies and disclosures require the measurement of

fair values, for both financial and non-financial assets and liabilities.

When measuring the fair value of an asset or a liability, the Polytechnic uses market observable

data as far as possible. Fair values are categorised into different levels in a fair value hierarchy

based on the inputs used in the valuation techniques as follows:

● Level 1 : quoted prices (unadjusted) in active markets for identical assets or liabilities

that the Polytechnic can access at the measurement date. ● Level 2 : inputs other than quoted prices included within Level 1 that are observable

for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.

derived from prices). ● Level 3 : inputs for the asset or liability that are not based on observable market data

(unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in

different levels of the fair value hierarchy, then the fair value measurement is categorised in its

entirety in the same level of the fair value hierarchy as the lowest level input that is significant

to the entire measurement (with Level 3 being the lowest).

The Polytechnic recognises transfers between levels of the fair value hierarchy as of the end of

the reporting period during which the changes has occurred.

2.5 Changes in accounting polices

Offsetting of financial assets and liabilities

Under the Amendments to SB-FRS 32 Financial Instruments: Presentation – Offsetting

Financial Assets and Financial Liabilities, to qualify for offsetting, the right to set off a

financial asset and a financial liability must not be contingent on a future event and must be

legally enforceable both in the normal course of business and in the event of default, insolvency

or bankruptcy of the entity and its counterparties.

Notwithstanding the above, the change had no significant impact on the measurements of the

Company’s assets and liabilities.

3 Significant accounting policies

The accounting policies used by the Polytechnic have been applied consistently to all periods

presented in these financial statements, except as explained in note 2.5 which addresses changes

in accounting policy.

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FS9

3.1 Investments in subsidiaries

Subsidiaries

Subsidiaries are entities controlled by the Polytechnic. The Polytechnic controls an entity when

it is exposed to, or has rights to, variable returns from its involvement with the entity and has

the ability to affect those returns through its power over the entity.

Investments in subsidiaries are stated in the Polytechnic’s statement of financial position at cost

less accumulated impairment loss.

3.2 Foreign currency transactions

Transactions in foreign currencies are translated to the functional currency of the Polytechnic at

the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated

in foreign currencies at the end of the reporting period are retranslated to the functional currency

at the exchange rate at that date. The foreign currency gain or loss on monetary items is the

difference between amortised cost in the functional currency at the beginning of the year,

adjusted for effective interest and payments during the year, and the amortised cost in foreign

currency translated at the exchange rate at the end of the year.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair

value are retranslated to the functional currency at the exchange rate at the date that the fair

value was determined. Non-monetary items in a foreign currency that are measured in terms of

historical cost are translated using the exchange rate at the date of the transaction. Foreign

currency differences arising on retranslation are recognised in profit or loss.

3.3 Financial instruments

Non-derivative financial assets

The Polytechnic initially recognises loans and receivables and deposits on the date that they are

originated. All other financial assets are recognised initially on the trade date, which is the date

that the Polytechnic becomes a party to the contractual provisions of the instrument.

The Polytechnic derecognises a financial asset when the contractual rights to the cash flows

from the asset expire, or it transfers the rights to receive the contractual cash flows on the

financial asset in a transaction in which substantially all the risks and rewards of ownership of

the financial asset are transferred. Any interest in transferred financial assets that is created or

retained by the Polytechnic is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the statement of

financial position when, and only when, the Polytechnic has a legal right to offset the amounts

and intends either to settle on a net basis or to realise the asset and settle the liability

simultaneously.

The Polytechnic classifies non-derivative financial assets into the following categories: loans

and receivables and available-for-sale financial assets.

Temasek Polytechnic



FS10

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not

quoted in an active market. Such assets are recognised initially at fair value plus any directly

attributable transaction costs. Subsequent to initial recognition, loans and receivables are

measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise cash and cash equivalents, and trade and other receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances, bank deposits and demand deposits that are

readily convertible to a known amount of cash and are subject to an insignificant risk of changes

in value.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are designated as

available for sale or are not classified in any of the above categories of financial assets.

Available-for-sale financial assets are recognised initially at fair value plus any directly

attributable transaction costs. Subsequent to initial recognition, they are measured at fair value

and changes therein, other than impairment losses and foreign currency differences on

available-for-sale debt instruments, are recognised in other comprehensive income and

presented in the fair value reserve in accumulated surplus and reserve. When an investment is

derecognised, the gain or loss accumulated in accumulated surplus and reserves is reclassified to

profit or loss.

Available-for-sale financial assets comprise equity securities, debt securities and funds managed

by fund managers.

Non-derivative financial liabilities

Financial liabilities (including financial liabilities designated at fair value through profit or loss)

are recognised initially on trade date, which is the date that the Polytechnic becomes a party to

the contractual provisions of the instrument.

The Polytechnic derecognises a financial liability when its contractual obligations are

discharged, cancelled or expired.

Financial assets and liabilities are offset and the net amount presented in the statement of

financial position when, and only when, the Polytechnic has a legal right to offset the amounts

and intends either to settle on a net basis or to realise the asset and settle the liability

simultaneously.

The Polytechnic classifies non-derivative financial liabilities into the other financial liabilities

category. Such financial liabilities are recognised initially at fair value plus any directly

attributable transaction costs. Subsequent to initial recognition, these financial liabilities are

measured at amortised cost using the effective interest method.

Other financial liabilities comprise trade and other payables.

Temasek Polytechnic



FS11

3.4 Funds

General funds

Income and expenditure relating to the main accounts of the Polytechnic are accounted for

through the General Fund in the Statement of Comprehensive Income.

Restricted funds

Income and expenditure relating to funds set up for contributions received and expenditure

incurred for specific purposes are accounted for through the Restricted Fund in the Statement of

Comprehensive Income.

The assets and liabilities of these funds are accounted for separately. However, for presentation

purposes, they are pooled together with those of the General Fund.

Other funds

Funds are set up to account for contributions received from external sources for specific

purposes.

The assets and liabilities of funds – Funds for student loans, Ministry of Education Opportunity

Fund and Khoo Teck Puat International Opportunity Programme Fund held in trust for Ministry

of Education and Campus Care Network Fund held in trust for the staff and students of the

Polytechnic are presented as a line item under the capital and other funds section on the face of

the balance sheet of the financial statements as prescribed by SB-FRS Guidance Note 1.

Income and expenditure relating to these funds are accounted for directly in these funds.

Details of income, expenditure, assets and liabilities relating to these funds are disclosed in Note

11 to the financial statements.

3.5 Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and

accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of

self-constructed assets includes:

the cost of materials and direct labour;

any other costs directly attributable to bringing the assets to a working condition for their

intended use;

when the Polytechnic has an obligation to remove the asset or restore the site, an estimate of

the costs of dismantling and removing the items and restoring the site on which they are

located; and

capitalised borrowing costs.

Temasek Polytechnic



FS12

Purchased software that is integral to the functionality of the related equipment is capitalised as

part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are

accounted for as separate items (major components) of property, plant and equipment.

The gain or loss on disposal of an item of property, plant and equipment (calculated as the

difference between the net proceeds from disposal and the carrying amount of the item) is

recognised in profit or loss.

Subsequent costs

The cost of replacing a component of an item of property, plant and equipment is recognised in

the carrying amount of the item if it is probable that the future economic benefits embodied

within the component will flow to the Polytechnic and its cost can be measured reliably. The

carrying amount of the replaced component is derecognised. The costs of the day-to-day

servicing of property, plant and equipment are recognised in profit or loss as incurred.

Property, plant and equipment costing less than $2,000 are charged to statement of

comprehensive income in the year of purchase.

Depreciation

Depreciation is based on the cost of an asset less its residual value. Significant components of

individual assets are assessed and if a component has a useful life that is different from the

remainder of that asset, that component is depreciated separately.

Depreciation is recognised as an expense in profit or loss on a straight-line basis over the

estimated useful lives of each component of an item of property, plant and equipment.

Depreciation is recognised from the date that the property, plant and equipment are installed and

are ready for use, or in respect of internally constructed assets, from the date that the asset is

completed and ready for use.

The estimated useful lives for the current and comparative years are as follows:

Leasehold land - Over lease term of 99 years

Leasehold buildings - 30 to 50 years

Building improvements - 5 years

Furniture, fittings and equipment - 5 years

Computer hardware and software - 3 to 5 years

Workshop equipment and machinery - 5 to 10 years

Vehicles - 5 years

Plant and machinery - 10 years

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting

period and adjusted if appropriate.

Temasek Polytechnic



FS13

3.6 Impairment

Non-derivative financial assets

A financial asset not carried at fair value through profit or loss is assessed at the end of each

reporting period to determine whether there is objective evidence that it is impaired. A financial

asset is impaired if objective evidence indicates that a loss event has occurred after the initial

recognition of the asset, and that the loss event has an impact on the estimated future cash flows

of that asset that can be estimated reliably.

Objective evidence that financial assets (including equity securities) are impaired can include

default or delinquency by a debtor, restructuring of an amount due to the Polytechnic on terms

that the Polytechnic would not consider otherwise, indications that a debtor will enter

bankruptcy, adverse changes in the payment status of borrowers and economic conditions that

correlate with defaults or the disappearance of an active market for a security. In addition, for

an investment in an equity security, a significant or prolonged decline in its fair value below its

cost is objective evidence of impairment. The Polytechnic considers a decline of 20% to be

significant and a period of 9 months to be prolonged.

Loans and receivables

The Polytechnic considers evidence of impairment for loans and receivables at a specific asset

and collective level. All individually significant loans and receivables are assessed for specific

impairment. All individually significant loans and receivables found not to be specifically

impaired are then collectively assessed for any impairment that has been incurred but not yet

identified. Loans and receivables that are not individually significant are collectively assessed

for impairment by grouping together loans and receivables with similar risk characteristics.

In assessing collective impairment, the Polytechnic uses historical trends of the probability of

default, timing of recoveries and the amount of loss incurred, adjusted for management’s

judgement as to whether current economic and credit conditions are such that the actual losses

are likely to be greater or less than suggested by historical trends.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the

difference between its carrying amount and the present value of the estimated future cash flows

discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss

and reflected in an allowance account against loans and receivables. Interest on the impaired

asset continues to be recognised. When the Polytechnic considers that there are no realistic

prospects of recovery of the asset, the relevant amounts are written off. If the amount of

impairment loss subsequently decreases and the decrease can be related objectively to an event

occurring after the impairment was recognised, then the previously recognised impairment loss

is reversed through profit and loss.

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FS14

Available-for-sale financial assets

Impairment losses on available-for-sale financial assets are recognised by reclassifying the

losses accumulated in the fair value reserve in accumulated surplus and reserve to profit or loss.

The cumulative loss that is reclassified from accumulated surplus and reserve to profit or loss is

the difference between the acquisition cost, net of any principal repayment and amortisation,

and the current fair value, less any impairment loss recognised previously in profit or loss.

Changes in cumulative impairment provisions attributable to application of the effective interest

method are reflected as a component of interest income. If, in a subsequent period, the fair value

of an impaired available-for-sale debt security increases and the increase can be related

objectively to an event occurring after the impairment loss was recognised, then the impairment

loss is reversed. The amount of the reversal is recognised in profit or loss. However, any

subsequent recovery in the fair value of an impaired available-for-sale equity security is

recognised in other comprehensive income.

Non-financial assets

The carrying amounts of the Polytechnic’s non-financial assets are reviewed at each reporting

date to determine whether there is any indication of impairment. If any such indication exists,

then the assets’ recoverable amount is estimated. An impairment loss is recognised if the

carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated

recoverable amount.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value

less costs to sell. In assessing value in use, the estimated future cash flows are discounted to

their present value using a pre-tax discount rate that reflects current market assessments of the

time value of money and the risks specific to the asset or CGU. For the purpose of impairment

testing, assets that cannot be tested individually are grouped together into the smallest group of

assets that generates cash inflows from continuing use that are largely independent of the cash

inflows of other assets or CGUs.

Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of

CGUs are allocated to reduce the carrying amounts of the other assets in the CGU (group of

CGUs) on a pro rata basis.

Impairment losses recognised in prior periods are assessed at each reporting date for any

indications that the losses have decreased or no longer exist. An impairment loss is reversed if

there has been a change in the estimates used to determine the recoverable amount. An

impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed

the carrying amount that would have been determined, net of depreciation or amortisation, if no

impairment loss had been recognised.

3.7 Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis

over the term of the lease.

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FS15

3.8 Employee benefits

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed

contributions into a separate entity and will have no legal or constructive obligation to pay

further amounts. Obligations for contributions to defined contribution pension plans are

recognised as an employee benefit expense in profit or loss in the periods during which services

are rendered by employees.

Short-term benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are

expensed as the related service is provided. A liability is recognised for the amount expected to

be paid under short-term cash bonus or profit-sharing plans if the Polytechnic has a present legal

or constructive obligation to pay this amount as a result of past service provided by the

employee and the obligation can be estimated reliably.

3.9 Provisions

A provision is recognised if, as a result of a past event, the Polytechnic has a present legal or

constructive obligation that can be estimated reliably, and it is probable that an outflow of

economic benefits will be required to settle the obligation. Provisions are determined by

discounting the expected future cash flows at a pre-tax rate that reflects current market

assessments of the time value of money and the risks specific to the liability. The unwinding of

the discount is recognised as finance cost.

3.10 Revenue

Student fees

Tuition and other fees for an academic year are recognised over the period of service in a

financial year.

Income from courses/projects

Revenue from courses/projects is recognised based on percentage of completion, determined on

straight-line basis over the period of the courses/projects.

Donations

Donations are recognised upon receipt.

3.11 Finance income

Finance income comprises interest income on funds invested. Interest income is recognised as

it accrues in profit or loss, using the effective interest method.

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FS16

3.12 Government grants

Government grants related to assets in which the Polytechnic has discretionary management

power are taken directly to the Deferred Capital Grant account, or to the Statement of

Comprehensive Income for assets which are expensed off in the year of purchase.

Other government grants related to assets are initially taken to Government grant received in

advance account and upon their utilisation for the purchase of assets, they are transferred to the

Deferred Capital Grant account, or to the Statement of Comprehensive Income for assets which

are written off in the year of purchase.

The deferred capital grants are recognised in the Statement of Comprehensive Income over the

periods necessary to match the depreciation and write off of the property, plant and equipment

purchased with the related grants. Upon the disposal of the property, plant and equipment, the

balance of the related deferred capital grants is recognised in the Statement of Comprehensive

Income to reflect the net book value of the assets disposed.

Government grants to meet the current year’s operating expenses are taken to the Statement of

Comprehensive Income for the year. Government grants are accounted for on an accrual basis.

3.13 Tax

The Polytechnic is registered as a charitable institution with effect from the Year of Assessment

2008 or the financial year ended 31 March 2007, all registered charities will enjoy automatic

income tax exemption without having the need to meet the 80% spending rule and there is no

need to file income tax returns by virtue of Section 13(1)(zm) of the Income Tax Act, Chapter

134.

3.14 New standards and interpretations not adopted

A number of new standards, amendments to standards and interpretations are effective for the

annual periods beginning on or after 1 April 2014, and have not been applied in preparing these

financial statements. None of these is expected to have a significant effect on the financial

statements of the Polytechnic.

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FS17

4 Property, plant and equipment

Leasehold

land

Leasehold

buildings

Buildings

improve-

ments

Furniture

fittings and

equipment

Computer

hardware

Workshop

equipment

and

machinery Vehicles

Computer

software

Plant and

machinery

Capital

work-in-

progress Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Cost

At 1 April 2013 66,889 480,123 26,987 69,644 71,694 47,487 98 48,430 111,095 30,221 952,668

Additions – 8,898 950 11,316 6,327 2,439 8 2,041 9,755 60,224 101,958

Transfers – 21,948 1,246 – – – – 441 423 (24,058) –

Disposals – (64) (1,976) (3,283) (6,571) (2,099) (15) (729) – – (14,737)

At 31 March 2014 66,889 510,905 27,207 77,677 71,450 47,827 91 50,183 121,273 66,387 1,039,889

Additions – 6,264 5,970 2,229 6,722 2,678 – 2,928 17 75,818 102,626

Transfers – 25,085 812 6,650 2,548 273 – 561 10,329 (46,258) –

Disposals – (538) (2,036) (7,275) (4,236) (1,533) – (1,032) (482) – (17,132)

At 31 March 2015 66,889 541,716 31,953 79,281 76,484 49,245 91 52,640 131,137 95,947 1,125,383

Accumulated

depreciation

At 1 April 2013 12,030 141,437 22,247 54,839 63,567 41,683 90 40,807 84,073 – 460,773

Depreciation 703 10,308 1,605 4,711 5,664 2,475 4 4,165 3,998 – 33,633

Disposals – (17) (1,930) (3,274) (6,565) (2,097) (15) (728) – – (14,626)

At 31 March 2014 12,733 151,728 21,922 56,276 62,666 42,061 79 44,244 88,071 – 479,780

Depreciation 703 11,379 2,202 7,475 6,735 2,610 4 3,967 5,448 – 40,523

Disposals – (177) (2,037) (7,271) (4,215) (1,510) – (1,000) (479) – (16,689)

At 31 March 2015 13,436 162,930 22,087 56,480 65,186 43,161 83 47,211 93,040 – 503,614

Carrying amounts

At 1 April 2013 54,859 338,686 4,740 14,805 8,127 5,804 8 7,623 27,022 30,221 491,895

At 31 March 2014 54,156 359,177 5,285 21,401 8,784 5,766 12 5,939 33,202 66,387 560,109

At 31 March 2015 53,453 378,786 9,866 22,801 11,298 6,084 8 5,429 38,097 95,947 621,769

During the year, the amount of property, plant and equipment acquired by the Polytechnic which remains unpaid as at year-end amounts to

$4,098,000 (2014: $15,824,000) (Note 16). The cash outflow on acquisition of property, plant and equipment amounted to $98,528,000 (2014:

$86,134,000).

Temasek Polytechnic



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5 Investments in subsidiaries 2014/15 2013/14

$ $

Unquoted equity shares, at cost 2 2

Details of subsidiaries are as follows:

Name of subsidiary Principal activities

Country of

registration

and operation

Equity

interest held

2014/15 2013/14

% %

Held by the Polytechnic:

TP Innovation Holdings Pte Ltd Investment company to

promote and

commercialise Temasek

Polytechnic’s research

and development results,

technology, design or

business innovations

Singapore 100 100

Held by the subsidiary:

TP Education Services Pte Ltd Company dealing with

matters relating to and

connected to education,

course know-how,

training of personnel, on

the job training and/or

internship placements for

students and granting licences and franchises

Singapore 100 100

At the reporting date, the Polytechnic had given an undertaking to provide continuing financial

support to the subsidiaries.

The assets, liabilities and results of the subsidiaries have not been consolidated as they are not

considered to be material to the Polytechnic’s financial statements.

Temasek Polytechnic



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6 Available-for-sale investments 2014/15 2013/14

$’000 $’000

Non-current

At cost:

Unquoted equity shares 458 458

At fair value:

Financial assets available-for-sale

Quoted debt securities 28,691 63,556

29,149 64,014

Current

At fair value:

Financial assets available-for-sale

Quoted debt securities 23,615 −

Quoted securities managed by fund managers

- equity 24,088 19,561

- unit trust/real estate investment trusts 47,070 44,621

94,773 64,182

As at the reporting date, the quoted debt securities bear interest rate of from 3.25% to 5.75%

(2014: 3.25% to 5.75%) per annum. Interest is receivable on a semi-annual basis. The maturity

dates of debt securities range from 15 December 2015 to perpetual (2014: 10 September 2014 to

24 August 2020).

Investments managed by fund managers form part of the Polytechnic’s funds which are

administered by asset management companies (fund managers). The fund managers are given

discretionary powers within certain guidelines to invest the funds.

The Polytechnic’s available-for-sale investments that are not denominated in its functional

currency are as follows:

2014/15 2013/14

$’000 $’000

Australian dollar 1,622 −

Hong Kong dollar 1,160 2,071

United States dollar 49,161 25,573

Indonesian rupiah 97 1,374

Thailand baht 206 1,406

Great Britain pound (80) 1,365

Others 3,637 5,517

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7 Trade and other receivables 2014/15 2013/14

$’000 $’000

Trade receivables 1,048 716

Deposits 382 249

Singapore Totalisator Board grant (“Tote grant”) 350 174

Loans due from subsidiaries 218 201

Fund manager 109 −

Sundry debtors 6470 4,326

8,577 5,666

The Company’s exposure to credit risk and impairment losses related to trade and other

receivables is disclosed in note 22.

8 Cash and cash equivalents 2014/15 2013/14

$’000 $’000

Cash at bank and on hand (1,188) (2,232)

Cash with the AGD 200,953 247,725

Total cash and bank balances 199,765 245,493

Less:

Cash and cash equivalents managed by fund managers:

- Cash at bank and on hand (1,056) (2,378)

Net cash and cash equivalents in cash flow statement 198,709 243,115

Cash with the Accountant-General’s Department (“AGD”) refers to cash that are managed by

the AGD under Centralised Liquidity Management (“CLM”) as set out in the Accountant-

General's Circular No.4/2009 Centralised Liquidity Management for Statutory Boards and

Ministries.

The interest rate of cash with AGD, defined as the ratio of the interest earned to the average

cash balance, is 0.79% (2014: 0.52%) or ranges from 0.64% to 0.99% (2014: 0.43 to 0.61%) per

annum.

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9 Accumulated surplus and reserve

General Fund

As at the reporting date, the Polytechnic has capital commitments of approximately $29 million

(2014: $88 million).

Restricted Funds

Restricted Funds comprise the following funds:

Name of Fund Purpose

Bursary, Scholarship and Awards Fund Providing financial assistance to needy

students, scholarships to students and book

prizes and medals to students and graduates

who excel academically and in extra-curricular activities.

Staff Apartment Fund Maintaining and upgrading of the Polytechnic’s staff apartments.

Temasek Polytechnic Endowment Fund Providing financial support for:

(a) staff development;

(b) student development, focusing on international exchange;

(c) promotion of innovation;

(d) bringing relevant world-class expertise to

the Polytechnic;

(e) scholarships to outstanding students; and

(f) bursaries to deserving needy students

Miscellaneous Fund

– Self Financing Project Fund

Conducting pre-employment education for the

hospitality and tourism workforce in Singapore,

short and continuing education courses;

upgrading Polytechnic’s teaching facilities; and

providing welfare and wellness activities for the Polytechnic’s students and staff.

– Special Projects Fund Providing training and placement for working

adults with funding from Government agencies

and external parties.

The Bursary, Scholarship and Awards Fund and Temasek Polytechnic Endowment Fund are

included in the Temasek Polytechnic General Education Fund (See Note 21).

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Restricted Funds

Bursary, Scholarship

and Awards Fund Staff Apartment Fund

Temasek Polytechnic

Endowment Fund Miscellaneous Fund Total

2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Operating income

Courses, projects, seminars and talks – – – – – – 1,793 1,783 1,793 1,783

Donations:

- Tax deductible 921 575 – – – – – – 921 575

- Non-tax deductible 164 317 – – – – – – 164 317

Other income – – 578 564 – – 7 15 585 579

1,085 892 578 564 – – 1,800 1,798 3,463 3,254

Operating expenditure

Courses, projects, seminars and talks – – – – – – 1,819 1,652 1,819 1,652

Depreciation – – 1 1 – – 3 10 4 11

IT and information communication – – – – – – 49 39 49 39

Other expenditure 882 963 588 619 170 314 54 117 1,694 2,013

Property, plant and equipment

expensed off – – – 4 – – 40 – 40 4

Rental – – – – – – 651 747 651 747

Repairs and maintenance – – – – – – 263 212 263 212

Salaries, CPF and other related costs – – – – – – 1,307 1,243 1,307 1,243

Teaching materials and resources – – – – – – 2 – 2 –

882 963 589 624 170 314 4,188 4,020 5,829 5,921

Temasek Polytechnic



FS23

Restricted Funds

Bursary, Scholarship

and Awards Fund Staff Apartment Fund

Temasek Polytechnic

Endowment Fund Miscellaneous Fund Total

2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Operating surplus/(deficit) 203 (71) (11) (60) (170) (314) (2,388) (2,222) (2,366) (2,667)

Non-operating income

Interest income 21 7 – – 634 373 180 108 835 488

Surplus/(deficit) before grants 224 (64) (11) (60) 464 59 (2,208) (2,114) (1,531) (2,179)

Grants

Deferred capital grant amortised -

Government – – – – – – 41 7 41 7

Operating grant - Government – – – – – – 2,807 2,892 2,807 2,892

Surplus/(deficit) for the year 224 (64) (11) (60) 464 59 640 785 1,317 720

Accumulated surplus at 1 April 823 887 3,256 3,316 590 531 29,773 28,988 34,442 33,722

Accumulated surplus at 31 March 1,047 823 3,245 3,256 1,054 590 30,413 29,773 35,759 34,442

Represented by:

Property, plant and equipment – – 15 6 – – 1 3 16 9

Government grant receivables – – – – – – 2,555 213 2,555 213

Trade and other receivables 13 6 7 19 165 55 720 455 905 535

Cash and bank balances 1,415 1,225 3,267 3,270 889 535 27,739 29,755 33,310 34,785

Government grants received in

advance – – – – – – (142) (182) (142) (182)

Trade and other payables (381) (408) (44) (39) – – (459) (469) (884) (916)

Deferred capital grant - Government – – – – – – (1) (2) (1) (2)

1,047 823 3,245 3,256 1,054 590 30,413 29,773 35,759 34,442

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10 Temasek Polytechnic Endowment Fund

Donations and contributions made to the Temasek Polytechnic Endowment Fund are retained as

principal capital to be kept intact to earn income. Income and expenditure of the fund are taken

to "Restricted Funds" in the Statement of Comprehensive Income.

2014/15 2013/14

$’000 $’000

At 1 April 10,359 6,358

Donations received 3,500 1,850

Matching grant received from Government 3,939 2,151

At 31 March 17,798 10,359

Represented by:

Investment in debt securities 13,709 8,208

Cash and bank balances 4,089 2,151

17,798 10,359

During the year, a matching grant was received from MOE amounting to $939,000 (2014:

$1,626,000) for non-endowed donations received which were recognised in the Statement of

Comprehensive Income.

11 Other funds

(a) Tuition Fee Loan

Tuition fee loan comprises advances from the Government, which provides tuition fee loans to

students. The tuition fee loans are administered by a financial institution. Loans given to

students are interest-free until the year of their graduation, or for those with National Service

obligation, in the year in which they finish their National Service. Thereafter, loans are

repayable by monthly instalments with interest based on the average prime rates of banks or

such other rate as may be determined by the Polytechnic.

Repayment of the loans will eventually be returned to the Government. Accordingly, the

carrying amounts of staff and student loans approximate their fair values.

2014/15 2013/14

$’000 $’000

At 1 April 5,871 5,829

Amount contributed by Government 1,357 1,588

Amount refunded to Government (1,488) (1,546)

At 31 March 5,740 5,871

Represented by:

Outstanding loans:

Tuition fee loans 5,740 5,871

Temasek Polytechnic



FS25

(b) Campus Care Network Fund

The campus care network ("CCN") fund was set up to provide crisis assistance, emergency

assistance as well as education assistance to needy students. The source of fund comes mainly

from proceeds collected through fund raising activities among students and staff within the

campus on CCN days. The fund is managed by a CCN committee.

2014/15 2013/14

$’000 $’000

At 1 April 281 269

Contribution received 71 62

Other income 4 3

Relief to students (66) (53)

At 31 March 290 281

Represented by:

Cash and bank balances 290 281

(c) Khoo Teck Puat International Opportunity Programme Fund

The Estate of Tan Sri Khoo Teck Puat launched the Khoo Teck Puat International Opportunity

Programme (“KTPIOP”) on 18 December 2007. The KTPIOP is supported by this fund. This

programme aims to provide needy students from the Polytechnic an opportunity to obtain an

overseas education experience. The fund is managed and disbursed by MOE to the Polytechnic

which will administer the application and award processing on behalf of the donor.

2014/15 2013/14

$’000 $’000

At 1 April 3 93

Contribution received 110 33

Financial assistance to students (60) (123)

At 31 March 53 3

Represented by:

Cash and bank balances 53 3

Temasek Polytechnic



FS26

(d) Ministry of Education Opportunity Fund

During FY13/14, the Ministry of Education extended the Ministry of Education Opportunity

Funds (“MOEOF”) to Polytechnics. These grants are to be used to level up co-curriculum

development opportunities for Singaporean students from lower income households.

2014/15 2013/14

$’000 $’000

At 1 April 3,349 –

Contribution received – 3,419

Financial assistance to students (168) (74)

Interest earned from unutilised funds 21 4

At 31 March 3,202 3,349

Represented by:

Cash and bank balances 3,202 3,349

12 Fees received in advance

Fees received in advance from Singapore Institute of Technology (“SIT”) for the usage of the

Polytechnic's facilities by SIT students will be amortised over a 30-year period commencing

from 14 March 2014 in accordance with the service agreement between the Polytechnic and

SIT.

13 Deferred capital grants - Government Note 2014/15 2013/14

$’000 $’000

Grants utilised as at 1 April 557,280 488,508

Grants utilised on property, plant and equipment:

Development grants 70 47,557

Operating grants 20 90,169 43,404

Furniture and equipment (“F&E”) and Information Technology (“IT”) grants 12,878 13,393

660,397 592,862

Amortisation (40,919) (35,582)

Grants utilised as at 31 March 619,478 557,280

Temasek Polytechnic



FS27

14 Deferred capital grants - others 2014/15 2013/14

$’000 $’000

At 1 April 2,825 3,386

Grants utilised on property, plant and equipment 619 542

Total 3,444 3,928

Amortisation (1,165) (1,103)

At 31 March 2,279 2,825

15 Government grants received in advance 2014/15 2013/14

$’000 $’000

Non-current:

F&E and IT grants unutilised as at 1 April 49,373 40,983

Grants received 25,476 25,774

Grants utilised (16,044) (17,384)

F&E and IT grants unutilised as at 31 March 58,805 49,373

Current:

Others 326 187

59,131 49,560

16 Trade and other payables Note 2014/15 2013/14

$’000 $’000

Trade payables 4,629 5,564

Fund manager – 743

Sundry creditors 12,966 10,900

Accruals for property, plant and equipment projects 4 4,098 15,824

Other accruals 15,769 17,773

Deferred income for courses in progress 2,391 2,488

39,853 53,292

17 Operating deficit The item has been arrived at after charging/(crediting):

2014/15 2013/14

$’000 $’000

Contribution to defined contribution plan

included in salaries 21,273 20,274

Exchange gains (33) (24)

Temasek Polytechnic



FS28

18 Interest income 2014/15 2013/14

$’000 $’000

Current accounts with financial institutions 1,247 915

Debt securities 3,831 4,089

Fixed deposits 1 5

5,079 5,009

19 Investment income 2014/15 2013/14

$’000 $’000

Dividend income from available-for-sale investments 423 655

(Loss)/Gain on disposal of available-for-sale investments (298) 1,731

125 2,386

20 Operating grants - Government Note 2014/15 2013/14

$’000 $’000

Operating grants received/receivable during the year 219,052 214,048

Less:

Operating grants utilised on property, plant and

equipment transferred to deferred capital grants -

Government 13 (90,169) (43,404)

128,883 170,644

During the financial year, the Polytechnic received a grant of $19,611,000 (2014: $18,941,000)

from the Ministry of Education to settle the outstanding goods and services tax payable to the

Inland Revenue Authority of Singapore. This amount has not been included in the operating

grants received from the Government as disclosed above.

21 The Temasek Polytechnic General Education Fund

In November 2002, the Board of Governors of the Polytechnic approved the setup of the

Temasek Polytechnic General Education Fund. The Fund was subsequently granted the

membership by the Ministry of Education under the Education Central Fund. The membership

was renewed for a period of three years with effect from 1 April 2013.

Under this membership, the Polytechnic is allowed to issue tax-deductible receipts to donors for

donations contributed towards Bursary, Scholarship and Awards Fund, Temasek Polytechnic

Endowment Fund and other education related activities which qualify for tax deduction. The

Polytechnic has set up a Management Committee to administer the receipts and disbursement of

the donations given by the donors.

Temasek Polytechnic



FS29

The financial statements of the Temasek Polytechnic General Education Fund are given below:

2014/15 2013/14

$’000 $’000

Income

Donations received:

Bursaries, scholarships and awards

- Tax deductible 921 575

- Non tax deductible 164 317

General donations 32 56

Donations in-kind 1 7

Interest income 655 380

Deferred capital grant amortised for donated assets 318 314

2,091 1,649

Expenditure

Disbursements:

Endowment Fund (170) (313)

Bursaries, scholarships and awards (882) (964)

General donations (19) (60)

Property, plant and equipment expensed off (1) (7)

Depreciation (318) (314)

(1,390) (1,658)

Net surplus/(deficit) for the year 701 (9)

Accumulated surplus at 1 April 1,434 1,443

Accumulated surplus at 31 March 2,135 1,434

The disbursements were made from donations received in current and prior years.

The reserves set aside are to provide financial stability and to ensure a continuous supply of

funds to meet the objectives of the Fund. The target is to maintain the reserves at a level

equivalent to one year’s disbursements and expenses. The reserves will be used to provide

financial assistance to needy students, scholarships, bursaries, book prizes and for other

education related activities. The Management Committee will review the reserves on a yearly

basis to ensure they are adequate to fulfil the objectives of the Fund.

The donations and disbursements are recorded in the respective funds in the financial

statements.

22 Financial risk management

Overview

The Polytechnic has exposure to the following risks from its use of financial instruments:

credit risk

liquidity risk

interest rate risk

equity price risk

currency risk

Temasek Polytechnic



FS30

This note presents information about the Polytechnic’s exposure to each of the above risks, the

Polytechnic’s objectives, policies and processes for measuring and managing risk.

Risk management framework

Risk management is integral to the whole business of the Polytechnic. The Polytechnic has a

system of controls in place to create an acceptable balance between the cost of risks occurring

and the cost of managing the risks. The management continually monitors the Polytechnic’s

risk management process to ensure that an appropriate balance between risk and control is

achieved. Risk management policies and systems are reviewed regularly to reflect changes in

market conditions and the Polytechnic’s activities.

Credit risk

Credit risk is the potential loss resulting from the failure of a student or a counterparty to settle

its financial and contractual obligations to the Polytechnic, as and when they fall due.

At the reporting date, there was no significant concentration of credit risk except for

Government grant receivables, funds managed by fund managers and quoted debt securities.

The maximum exposure to credit risk is represented by the carrying amount of each financial

asset in the statement of financial position. Cash and fixed deposits and funds are placed with

banks and financial institutions which are regulated.

The cash with AGD under Centralised Liquidity Management (“CLM”) are placed with high

credit quality financial institutions, and are available upon request.

The average credit period on trade receivable from student fees is 14 to 30 days (2014: 14 to 30

days). No interest is charged on the outstanding trade receivables. The Polytechnic has not

recognised any allowance for doubtful debts as the management are of the view that these

receivables are recoverable.

Included in the Polytechnic’s trade receivable balance are debtors with a carrying amount of

$866,000 (2014: $593,000) which are past due at the reporting date for which the Polytechnic

has not provided as there has not been a significant change in the credit quality and the amounts

are still considered recoverable. The aging profile of the trade receivables are as follows:

Impairment

The ageing of trade and other receivables at the reporting date was:

Gross

2014/15

Impairment

losses

2014/15

Gross

2013/14

Impairment

losses

2013/14

$’000 $’000 $’000 $’000

Neither past due nor impaired 203 – 123 –

Less than 3 months past due 764 – 498 –

3 months to 12 months 63 – 53 –

More than 12 months 39 21 42 –

1,069 21 716 –

Temasek Polytechnic



FS31

Liquidity risk

The Polytechnic monitors its liquidity risk and maintain a level of cash and cash equivalents

deemed adequate to finance the Polytechnic’s operations and to mitigate the effects of

fluctuations in cash flow.

The total contractual undiscounted cash flow of the Polytechnic’s non-derivative financial

liabilities are the same as their carrying amounts and are due within one year.

Interest rate risk

As the Polytechnic does not have any financial assets and liabilities which bear interest at

floating rates, no sensitivity analysis is prepared.

The interest rates for cash with AGD disclosed in Note 8 to the financial statements are based

on deposit rates determined by the financial institutions with which the cash are deposited and

are expected to move in tandem with market interest rate movements.

Equity price risk

The Polytechnic is exposed to equity risks arising from equity investments classified as

available-for-sale investments. Available-for-sale investments are held for strategic rather than

trading purposes.

Equity price sensitivity

The sensitivity analysis below has been determined based on the exposure to equity price risks

at the reporting date. 10% is the sensitivity rate used when reporting equity price sensitivity

internally to key management personnel and represents management’s assessment of the

possible change in equity price.

In respect of available-for-sale investments, if the market value of the quoted investments had

been 10% higher:

• the Polytechnic’s fair value reserves for the year ended 31 March 2015 would increase by

$12 million (2014: increase by $13 million).

In respect of available-for-sale investments, if the market value of the quoted investments had

been 10% lower:

• the Polytechnic’s fair value reserves for the year ended 31 March 2015 would decrease by

$12 million (2014: increase by $13 million).

Temasek Polytechnic



FS32

Currency risk

Some of the Polytechnic’s underlying investments are denominated in various foreign

currencies, including United States dollars and Hong Kong dollars. The exchange exposures in

these foreign currency denominated investments are managed by the Polytechnic’s fund

managers through forward foreign exchange contracts. These forward foreign exchange

contracts form part of the respective investment portfolio managed by the fund managers as

disclosed in Note 6 to the financial statements and therefore are not separately disclosed.

Fair value hierarchy

As at 31 March 2015, the Polytechnic has financial instruments measured at fair value. The

different levels have been defined as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: inputs other than quoted prices included within Level 1 that are observable for

the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• Level 3: inputs for the asset or liability that are not based on observable market data

(unobservable inputs).

Level 1 Level 2 Level 3 Total

$’000 $’000 $’000 $’000

31 March 2015

Available-for-sale investments 52,306 – – 52,306

Quoted debt securities

Quoted securities managed by

fund manager

- equity 24,088 – – 24,088

- unit trust/real estate

investment trust 47,070 – – 47,070

123,464 – – 123,464

31 March 2014

Available-for-sale investments

Quoted debt securities 63,556 – – 63,556

Quoted securities managed by fund manager

- equity 19,561 – – 19,561

- unit trust/real estate investment trust 44,621 – – 44,621

127,738 – – 127,738

Temasek Polytechnic



FS33

Accounting classifications and fair values

Fair values versus carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in

the statement of financial position are as follows:

Loans and

receivables

Available-

for-sale

Other

financial

liabilities

Total

carrying

amount Fair value

Note $’000 $’000 $’000 $’000 $’000

31 March 2015

Available-for-sale securities 6 – 123,464 – 123,464 123,464

Trade and other receivables 7 8,577 – – 8,577 8,577

Cash and cash equivalents 8 199,765 – – 199,765 199,765

Government grant receivable 14,595 – – 14,595 14,595

222,937 123,464 – 346,401 346,401

Trade and other payables 16 – – (39,853) (39,853) (39,853)

31 March 2014

Available-for-sale securities 6 – 127,738 – 127,738 127,738

Trade and other receivables 7 5,666 – 5,666 5,666

Cash and cash equivalents 8 245,493 – – 245,493 245,493

Government grant receivable 18,332 – – 18,332 18,332

269,491 127,738 – 397,229 397,229

Trade and other payables 16 – – (53,292) (53,292) (53,292)

Estimation fair values

Other financial assets and liabilities

The carrying amounts of financial assets and liabilities with a maturity of less than one year

(including trade and other receivables, cash and cash equivalents, and trade and other payables)

are assumed to approximate their fair values. All other financial assets and liabilities are

discounted to determine their fair values.

23 Other income 2014/15 2013/14

$’000 $’000

Grants and awards 1,344 917

Rental income 1,015 921

School/department income 2,206 1,740

Others 2,013 1,845

6,578 5,423

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24 Commitments 2014/15 2013/14

$’000 $’000

Minimum lease payments under operating leases

included in the statement of comprehensive income 925 1,011

At the reporting date, the Polytechnic has outstanding commitments under non-cancellable

operating leases, which fall due as follows:

2014/15 2013/14

$’000 $’000

Within one year 579 775

After one year but within five years 812 246

1,391 1,021

Operating lease payments represent rentals payable by the Polytechnic for its office premises

and office equipment. Leases are negotiated and rentals are fixed for an average term of 1 to 5

years (2014: 1 to 5 years).

25 Appropriation of accumulated surplus

The Polytechnic received a memorandum from the Ministry of Education dated 3 July 2002

which confirmed that the Ministry of Finance ("MOF") had no objection for the Polytechnic to

retain the unutilised surpluses generated prior to financial year ended 31 March 2001 as

working capital.

With effect from 1 April 2001, the Polytechnic is allowed to retain all the surpluses generated in

accordance with the MOF's circular dated 4 December 2000. The circular was subsequently

replaced by the MOF's circular dated 4 May 2011 which states the same stand on the surplus

retention.

26 Related parties

The Polytechnic is a statutory board domiciled in Singapore under the Temasek Polytechnic Act

(Chapter 323A). As a statutory board, all Government ministries and departments, and statutory

boards are deemed related parties of the Polytechnic.

Some of the Polytechnic’s transactions and arrangements are with related parties and the effect

of these on the basis determined between the parties is reflected in these financial statements.

The balances are unsecured, interest-free and repayable on demand unless otherwise stated.

Temasek Polytechnic



FS35

During the year, the Polytechnic entered into the following transactions with related parties:

2014/15 2013/14

$’000 $’000

Grant/Operating income

Ministry of Education (MOE) 281,617 310,906

Other Ministries and Statutory Boards 4,404 8,333

Expenses

Ministry of Education (MOE) (1,853) (2,137)

Other Ministries and Statutory Boards (887) (1,098)

Key management personnel (792) (276)

Balances due from related parties as at 31 March

Ministry of Education (MOE) 12,047 9,859

Other Ministries and Statutory Boards 2,980 255

Balances due to related parties as at 31 March

Ministry of Education (MOE) 184 5

Other Ministries and Statutory Boards 279 216

Compensation of Directors and key management personnel

Key management personnel of the Polytechnic are those persons having the authority and

responsibility for planning, directing and controlling the activities of the entity. The Principal,

Deputy Principals and Directors are considered as key management personnel of the

Polytechnic.

2014/15 2013/14

$’000 $’000

Short-term benefits 7,555 7,255

Defined contribution plans 319 302

· other expenditure 5,496 7,719 1,694 2,013 7,190 9,732 fees for ... polytechnic act (chapter...

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