Workplace Safety & Prevention Services
Notes to Financial Statements
March 31, 2017
17 FINANCIAL RISK MANAGEMENT
The Corporation is exposed to certain financial instrument risks, such as credit risk, liquidity risk and interest rate risk.
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 equivalent, and investments with major Schedule I banks and,
where feasible, obtaining prepayment for courses held. Accounts receivable is net of an impairment allowance of $53,227
(2015 – $174,610).
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 comparative figures have been restated to conform to the current period's financial statement presentation.
382016 | 2017 Annual Report Workplace Safety & Prevention Services
