31
2014
annual
report
|
Workplace
Safety
&
Prevention
Services
Workplace Safety & Prevention Services
Notes to Financial Statements
December 31, 2014
24. ECoNoMiC DEPENDENCE
The Association is dependent on the MOL for funding the cost of operations.
25. FiNaNCial iNstruMENts
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to
discharge an obligation. The Association'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 Association manages its
exposure to this risk by maintaining its cash and cash equivalents, and investments with a major Schedule I bank and
where feasible obtaining prepayment for courses held. Accounts receivable is net of an impairment allowance of $207,781
(2013 – $363,367).
liquidity risk
Liquidity risk is the risk that the Association encounters difficulty in meeting its obligations associated with financial
liabilities. Liquidity risk arises from accounts payable and accrued liabilities, vacation payable, attendance credits, exit
benefits, deferred WSIB surplus, employee future benefits and commitments. The Association continues to focus on
maintaining adequate liquidity to meet operating working capital requirements and capital expenditures.
26. CoMParativE FigurEs
The comparative figures have been restated to conform with the financial statement presentation adopted in the current year.
