NOTES TO THE FINANCIAL STATEMENTS 31 March 2024 27. FINANCIAL RISK MANAGEMENT (CONT’D) (c) Credit risk (cont’d) The table below details the credit quality of the University’s financial assets as well as maximum exposure to credit risk by credit risk rating grades: Note Internal credit rating 12-month or lifetime ECL Gross carrying amount Loss allowance Net carrying amount $’000 $’000 $’000 2024 Fees and other receivables 10 (i) Lifetime ECL (simplified approach) 1,212 (92) 1,120 Grants and other receivables (excluding fees and other receivables) 10 (ii) Lifetime ECL (simplified approach) 357,201 – 357,201 Deposits 12 Performing 12-month ECL 867 – 867 (92) Note Internal credit rating 12-month or lifetime ECL Gross carrying amount Loss allowance Net carrying amount $’000 $’000 $’000 2023 Fees and other receivables 10 (i) Lifetime ECL (simplified approach) 1,709 (122) 1,587 Grants and other receivables (excluding fees and other receivables) 10 (ii) Lifetime ECL (simplified approach) 351,169 – 351,169 Deposits 12 Performing 12-month ECL 194 – 194 (122) (i) The University determines the expected credit losses on these items by estimating based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions. (ii) Grant and other receivables (excluding fees and other receivables) are mainly due from the Singapore Government and other Singapore Government agencies which are of good credit rating standing. Therefore, the credit risk exposure of these grants and other receivables (excluding fee and other receivables) is insignificant and is subject to immaterial credit loss. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies and is subject to immaterial credit loss. (d) Capital risk The University is limited by guarantee with no share capital and is funded mainly by grants received from the Ministry of Education. The University is in compliance with all externally imposed capital requirements for the financial years ended 31 March 2024 and 2023. p. 89 ANNUAL REPORT 2023/24
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