27|WSPS.CA/AnnualReport
Workplace Safety & Prevention Services
Notes to Financial Statements
March 31, 2019
Credit risk
Credit risk is the risk one party to a financial instrument will cause a financial loss for the other party by failing
to discharge an obligation. The Corporation's financial instruments that are exposed to concentrations of credit
risk relate primarily to cash and cash equivalents, short-term investments and accounts receivable. The
Corporation manages its exposure to this risk by maintaining its cash and cash equivalents and investments
with major Schedule I banks and, where feasible, obtaining prepayment for courses held. Accounts receivable is
net of an impairment allowance of $48,285 (2018 – $48,851).
Liquidity risk
Liquidity risk is the risk the Corporation encounters difficulty in meeting its obligations associated with
financial liabilities. Liquidity risk arises from accounts payable and accrued liabilities, exit benefits and
attendance credits payable, employee future benefits and commitments. The Corporation continues to focus on
maintaining adequate liquidity to meet operating working capital requirements and capital expenditures.
Interest rate risk
The Corporation is exposed to interest rate risk as the value of its investments fluctuates in accordance with
fluctuations in interest rates. The Corporation manages its risk by monitoring the performance of individual
investments and investing in conservative guaranteed investment certificates and money market funds.
18 Comparative figures
Certain prior year figures have been reclassified to conform to the current year's financial statement
presentation. In particular, in the investing activities of the statement of cash flows, the presentation of net
purchases of short-term investments of $9,550,208 was grossed out into proceeds from sale of short-term
investments of $29,154,828 and purchases of short-term investments of $31,505,036. Also in the investing
activities section of the statement of cash flows, proceeds of long-term investments were reduced from
$7,200,000 to $nil as the proceeds were reinvested in the short-term investment portfolio.
