enabling opportunities through aviation
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Civil Aviation Authority of Singapore2009/2010 Annual Report
Enabling OppOrtunitiEs
thrOugh aviatiOn
VisionA leader in civil aviation; a city connecting the world.
MissionTo grow a safe, vibrant air hub and civil aviation system, making a key contribution to Singapore’s success.
CONTENTS
Chairman’s Statement 3 Director-General’s Statement 5 Authority Members 8 The Authority’s Committees
11 CAAS Principal Officers 12 Safety Oversight 15 Global Air Hub 21 Industry Development 27
Air Navigation Services 33 Sharing Knowledge 39 International Contribution 45 Air Traffic Statistics 50
Financial Statements 53
1Civil Aviation Authority of Singapore2009/2010 Annual Report
A Year of Resilience & Growth
At the start of 2009, the prevailing indicators signalled
an extremely difficult year ahead for economies and
businesses. Nations grappled with the aftermath of the
global financial crisis that rocked international markets
in late 2008. In aviation, passenger and cargo demand
collapsed and Maintenance, Repair and Overhaul (MRO)
activity declined, leading to fears over the continued
viability of some airlines. Having come through SARS
epidemic, the aviation industry was then hit with another
health scare, the H1N1 pandemic. At the same time, fears
about terrorist activities kept jittery air travellers at home.
As it turned out, the volatility that characterised 2009 was
tempered by bright spots of resilience and growth. Low
Cost Carriers (LCCs), which tapped into the burgeoning
demand for short-haul, low-cost travel, saw growth sky
rocketing. During the year, LCC passenger movements and
flights alike registered increases of more than 50 per cent
over the previous year. In 2009, LCC’s accounted for 19.1
per cent of passenger movements at Changi Airport, up
from 12.3 per cent the previous year; and 23.6 per cent of
flights, up from 15.7 per cent in 2008.
Reassuring signs surfaced in the second half of 2009,
indicating that the Singapore economy was on the mend.
Overall, passenger traffic at Changi Airport also picked up
strongly, with Changi registering 37.2 million passenger
movements in 2009. Additionally, Singapore captured over
20 per cent of the Asia-Pacific MRO market, generating
a nominal value add of $2.7 billion to our GDP in 2009.
By the first quarter of 2010, recovery in the economy was
broad based and rapidly gaining momentum. In tandem,
the aviation sector grew robustly.
A Strategic Role for CAAS
In the midst of the economic volatility, the corporatisation
of Changi Airport and restructuring of the Civil Aviation
Authority of Singapore (CAAS) was completed on 1 July
2009. The Changi Airport Group (CAG) was formed to
operate Changi Airport and take advantage of emerging
business opportunities in a more flexible and innovative
way. The new CAAS was restructured to focus on strategic,
regulatory and wider developmental functions. CAAS and
CAG continue to work together to reinforce Singapore’s
success as a leading air hub, with Changi Airport winning
further accolades.
Moving forward, it will be imperative for CAAS to grow the
aviation sector, in addition to focusing on its core functions
in aviation safety, air hub development and the provision
of air navigation services and aviation training. Creating
a thriving aviation hub also requires building the larger
aviation ecosystem comprising MRO, air cargo, logistics,
aerospace manufacturing, among others. CAAS will take
a holistic approach by enabling enterprises, people and
ideas. CAAS is pushing the boundaries on various fronts to
create a conducive environment for the aviation industry,
address its manpower and skills shortages, and invest in
boosting people development, productivity, innovation and
capability development.
CAAS’ progress thus far has been made possible by the
support of our key stakeholders and partners across
the spectrum within the government and the aviation
community here in Singapore and the world. I would like
to thank them for their invaluable support. My heartfelt
thanks also go out to our staff for their dedicated service in
a period of significant change.
Singapore’s aviation community has come through a
difficult year with greater resilience, fresh insights and a
renewed passion. Together, we are well placed to face the
challenges ahead and to create a brighter future.
LEE HSIEN YANG
Chairman
Chairman’s statEmEnt
2 Civil Aviation Authority of Singapore2009/2010 Annual Report
Civil Aviation Authority of Singapore2009/2010 Annual Report
3
DIRECTOR-GENERAL’S STATEMENT
The year under review marked a new era in the
transformation of the Civil Aviation Authority
of Singapore (CAAS). 2009 opened with a
sense of eager anticipation as preparations for
the corporatisation of Changi Airport and the
restructuring of CAAS gained momentum. The year’s
key developments bear out the raison d’être of the
restructured CAAS – Enabling Opportunities
Through Aviation.
Enlarging on its functions as regulator, air hub
developer and service provider, the restructured
CAAS is embracing its role as an industry enabler,
promoting the development of Singapore’s air hub
and aviation industry. CAAS’ role in advancing the
contribution of aviation to Singapore’s economic
interests involves fostering an enterprise-friendly
environment and collaborating with industry players
and relevant government agencies.
Air Hub Competitiveness and Connectivity
One of the goals of corporatising Changi Airport
was to enable it to be more competitive as an
international air hub. An economic regulation
framework was put in place to ensure airport
competitiveness, while incentivising the airport
operator to be more innovative and efficient in its
operations and to achieve sustainable economic
returns. To ensure that high service standards were
maintained at Changi, a service regulation framework
was also established. Post corporatisation, Changi
Airport has continued to win top awards, enhancing
the ‘Changi experience’ for its customers in
the process.
In FY2009/2010, CAAS successfully reached or
enhanced bilateral air services agreements between
Singapore and 14 countries as part of our drive for
further air services liberalisation. A liberal aviation
policy allows airlines and air cargo operators greater
flexibility in responding to market conditions. It
also offers more choice at competitive rates to
passengers and shippers. The number of weekly air
services to and from Changi Airport has increased,
standing at more than 5,000.
The Air Traffic Service arm of CAAS continued to
manage the increasing air traffic around Changi
Airport and within the Singapore Flight Information
Region (FIR) safely and efficiently. In 2009, there
were close to 500,000 aircraft movements within
the Singapore FIR. In recognition, CAAS received the
prestigious International Air Transport Association
(IATA) Eagle Award for the ‘Best Air Navigation
Service Provider’ for 2009 and the inaugural Air
Navigation Services Provider of the Year award by
the Centre of Asia Pacific Aviation (CAPA).
To further improve safety and efficiency in air traffic
management, CAAS has continued to introduce
Performance-Based Navigation (PBN) procedures
and new technologies. Significant progress has
been made on the development and installation of
a new generation air traffic control system, LORADS
III. CAAS has also continued to work with the
International Civil Aviation Organization (ICAO), its
member states in the Asia-Pacific region, and other
international and regional bodies to improve air
traffic management in various parts of the region.
4 Civil Aviation Authority of Singapore2009/2010 Annual Report
Civil Aviation Authority of Singapore2009/2010 Annual Report
5
Aviation Industry Development
In January 2010, CAAS launched the Aviation
Development Fund (ADF) with a budget of $100
million over the next five years. The Fund aims
to promote and develop the aviation sector
through incentive programmes to support
capability development.
Two ADF programmes, the Aviation Partnership
Programme and the Aviation Innovation Programme,
were subsequently launched in April 2010. The
programmes are valued at $25 million each for
the next five years. Future programmes will cater
to areas such as manpower development, skills
upgrading and overall industry promotion.
CAAS is also seeking to drive growth in the aviation
sector through partnerships with various government
agencies and key industry players. In the year under
review, CAAS initiated greater collaboration with
the industry to nurture innovation, develop new
capabilities, and enhance human resource training
and development for the industry.
Several Memorandums Of Understanding (MOU)
were signed in the year under review. To improve
efficiency in the air cargo and logistics sector,
an MOU was signed with five parties to launch
e-freight@Singapore. The programme is designed
to enable faster and more accurate paperless
processing of cargo shipments. The parties to the
MOU were the Info-communications Development
Authority of Singapore, the International Air
Transport Association (IATA), the Singapore
Aircargo Agents Association, the Singapore
Logistics Association and the Singapore National
Shippers’ Council.
CAAS also formalised two MOUs with the Association
of Aerospace Industries (Singapore) and the
Singapore Institute of Aerospace Engineers. Beyond
developing the aviation industry, the agreements aim
to entice more Singaporeans to pursue careers in
aviation, and raise skill levels in the aviation cluster.
As Singapore’s aviation industry continues to grow,
the need to attract and develop the next generation
of aviation professionals has become more urgent.
To further raise awareness of Singapore’s aviation
industry, CAAS launched a new monthly online
magazine entitled ‘Bridging Skies’ in February 2010.
‘Bridging Skies’ goes out to a worldwide audience,
and covers the latest developments in the aviation
industry, including topical industry issues and trends,
and perspectives from industry players.
Galvanising the Aviation Community
As part of our 25th anniversary celebrations in 2009,
CAAS organised the Aviation Run in November 2009.
The Aviation Run saw CAAS galvanising the entire
DIRECTOR-GENERAL’S STATEMENT
aviation community to build camaraderie and to
raise funds for the needy. More than 4,000 runners
from 116 organisations within the aviation community
participated in the run, and raised $218,000 for the
Community Chest.
Financial Performance
Our overall financial performance remains strong
and well-supported, notwithstanding the decline
in our net surplus following the corporatisation of
Changi Airport on 1 July 2009. For the year ended
31 March 2010, we achieved a net surplus of $93
million – a commendable performance given the
difficult market conditions at the time. Airport
operations contributed $32 million to this net
surplus in the first quarter of the financial year prior
to corporatisation. The remaining net surplus of
$61 million was generated from CAAS’ continued
activities and non-operating income for the year. Our
operating expenditure of $200 million was 23 per
cent higher than last year, mainly due to the ramp
up in activities arising from our restructured civil
aviation role and the commencement of depreciation
on a completed building asset. Given our robust
financial performance, we are primed to do more in
our strategic, regulatory and promotion functions
over the long-term.
People are our Inspiration
It is our people who will achieve the mission and
vision of CAAS. With the restructuring of the
organisation, we reinforced our people development
framework to continue to attract and retain our
talents, build a more productive and inclusive
workforce, and enhance long-term manpower
sustainability. Starting salaries were revised and staff
remuneration was adjusted in line with the market.
To strengthen our performance-based remuneration
system, the performance bonus and merit increment
matrix were also enhanced. In the light of an
ageing workforce in Singapore, CAAS developed a
framework for the management of mature workers
and implemented it in January 2010. With the
revitalisation of CAAS’ core values, efforts were
made to mould the organisation and our culture,
and promote close collaboration, innovation
and excellence.
It has been a busy and eventful year for all of us
at CAAS. My colleagues and I look forward to
pressing ahead with our quest to further develop
Singapore as a truly dynamic and vibrant aviation
hub of excellence.
YAP ONG HENG
Director-General
Civil Aviation Authority of Singapore2009/2010 Annual Report
6 Civil Aviation Authority of Singapore2009/2010 Annual Report
7
authOritY mEmbErs
As at 31 March 2010
CHAIRmAN
Lee Hsien YangmEmbER
Goh Joon Seng mEmbER
Khoo Chin Hean mEmbER
Teo Swee LianmEmbER
Quek Keng LiangmEmbER
Seng Han Thong
mEmbER
Yap Ong Heng mEmbER
Zulkifli baharudinmEmbER
Lim Yeow KheemEmbER
mG Ng Chee mengmEmbER
Ng Wai Choong
8 Civil Aviation Authority of Singapore2009/2010 Annual Report
9Civil Aviation Authority of Singapore2009/2010 Annual Report
STAFF & REmuNERATION
COmmITTEE
CHAIRmAN
Lee Hsien Yang
mEmbERS
bG Ng Chee meng
Seng Han Thong
Yap Ong Heng
Zulkifli baharudin
SECRETARY
Peter Wee
INvESTmENT COmmITTEE
CHAIRmAN
Teo Swee Lian
mEmbERS
Khoo Chin Hean
Ng Wai Choong
Yap Ong Heng
SECRETARY
Chia Sin Yee
AuDITCOmmITTEE
CHAIRmAN
Zulkifli baharudin
mEmbERS
Goh Joon Seng
Lim Yeow Khee
Quek Keng Liang
Seng Han Thong
SECRETARY
Sng Hock Seng
TENDERSCOmmITTEE
CHAIRmAN
Lee Hsien Yang
ALTERNATE CHAIRmAN
Ng Wai Choong
mEmbERS
Ng Wai Choong
Yap Ong Heng
ALTERNATE mEmbERS
Khoo Chin HeanbG Ng Chee meng
thEauthOritY’s COmmittEEs
As at 31 March 2010
10 Civil Aviation Authority of Singapore2009/2010 Annual Report
11Civil Aviation Authority of Singapore2009/2010 Annual Report
Yap Ong HengDirector-General
Tay Tiang GuanDeputy
Director-General
Goh Chin EeDirector
(Singapore Aviation Academy)
Dr Jarnail SinghChairman
(Civil Aviation Medical Board)
Ng Tee ChiouDirector
(Air Traffic Services)
bong Kim PinDirector
(International Civil Aviation Organization)
Looi Han SengDirector
(Airworthiness and Flight Operations)
Sng Hock SengDirector
(Internal Audit)
Peter WeeDirector
(Human Resource)
margaret TanDirector
(Air Transport/ Policy & Planning)
Not pictured: Christopher Lim Director (Aviation Industry)
Ng Cher KengDirector
(Airport Economic and Service Regulation)
Tan Siew HuayDirector(Legal)
Chia Sin YeeDirector
(Finance)
Pok Cheng ChongDirector
(Corporate Services )
Eileen PohDirector
(International Relations)
Lydia TanDirector
(Corporate Communications)
Phillip mahDivision Head
(Aviation Security and Emergency
Planning)
Alan FooDivision Head(Safety Policy and Licensing)
Loo Chee bengDivision Head
(Aerodrome and Air Navigation Services
Regulation)
CaasprinCipal OffiCErs
As at 31 March 2010
12 Civil Aviation Authority of Singapore2009/2010 Annual Report
13Civil Aviation Authority of Singapore2009/2010 Annual Report
safEtYOvErsight
A Safe and SecureAviation Environment
CAAS promotes a strong safety culture and embeds a robust safety framework, with a modern and progressive regulatory regime based on international best practices. Without compromising aviation safety and security, CAAS works with industry partners to meet business needs.
14 Civil Aviation Authority of Singapore2009/2010 Annual Report
Civil Aviation Authority of Singapore2009/2010 Annual Report
15
The restructuring of CAAS provided an opportunity
for the consolidation of safety functions under a new
Safety Regulation Group (SRG).
A new division, the Safety Policy and Licensing (SPL)
Division, was created to formulate safety policies
and to develop and drive industry-wide safety
initiatives and programmes. Its key responsibilities
include the formulation and management of the
State Safety Programme (SSP), and to ensure that
Singapore’s aviation safety regulations remain in line
with the International Civil Aviation Organization
(ICAO) Standards and Recommended Practices and
international best practices. SPL has commenced
work on the establishment of the SSP, as well as a
review of the overall safety regulatory framework.
Growing the Aviation manpower Pool
With the creation of SPL, all personnel licensing
functions were consolidated and placed under its
care. As at 31 March 2010, there were 3,575 pilots,
1,817 aircraft maintenance engineers and 238 air
traffic controllers licensed by CAAS. Four flying
training organisations and 6 maintenance training
organisations had CAAS certifications.
In August 2009, CAAS commenced trials for a new
Multi-Crew Pilot Licence (MPL) scheme, offering
airlines an alternative route for pilot training and
licensing. The scheme also offers the aviation
industry the opportunity to explore innovative
training pathways, such as the use of high fidelity
flight simulators for ab-initio training. An MPL
complements the existing professional pilot licence
and allows holders to operate as co-pilots in a multi-
crew aircraft.
Regulating Aerodromes and Air Traffic Services
with Rigour
Responsible for the safety oversight of civil airports
in Singapore, the Aerodrome and Air Navigation
Services Regulation (AAR) Division has put in place
a system for the certification of Changi and Seletar
airports, in accordance to ICAO-compliant national
standards, and the safety monitoring of certified
aerodrome operators.
The aerodrome certification and regulatory
framework was reviewed prior to the corporatisation
of Changi Airport in July 2009. Arising from the
review, the validity period of the aerodrome
certificate was changed to five years from the
open-ended validity period in place previously. A
fixed validity period – a sound regulatory practice
widely adopted by civil aviation authorities – places
the onus of continued compliance firmly on the
aerodrome operator.
SAFETY OVERSIGHT
On 1 July 2009, CAAS issued aerodrome certificates
for Changi and Seletar airports to the newly-formed
Changi Airport Group (CAG). Post corporatisation
audits were subsequently conducted by CAAS on
the CAG for their management of Changi Airport
and Seletar Airport in November 2009 and February
2010 respectively. In its primary role as a safety
regulator of air traffic services, the Authority
conducted a regulatory audit of Air Traffic Services
in October 2009. The audit established that the
Air Traffic Services Division complied with the
international civil aviation requirements in areas
such as air traffic services, search and rescue, and
aeronautical information services.
Facilitating Growth in the Aviation Cluster
In Financial Year (FY) 2009/2010, 19 additional
aircraft were registered on the Singapore Aircraft
Register, taking the total number of Singapore-
registered aircraft to 192. These numbers reflect the
confidence Singapore operators have in the growth
of the air transport industry here and in the region.
The year saw a 25 per cent increase in the granting
of a Letter of Acceptance of Type Certificate
by CAAS. A Type Certificate programme was
accomplished for the fleet of Airbus A320 aircraft
(A318, A319, A320 and A321). The granting of a
Letter of Acceptance of Type Certificate signifies
3,575PILOTS
1,817AIRCRAFT
MAINTENANCEENGINEERS
238 AIR TRAFFIC
CONTROLLERS
107MAINTENANCE
ORGANISATIONS
04 FLYING
TRAININGORGANISATIONS 06
MAINTENANCETRAINING
ORGANISATIONS
LICENSED & CERTIFIED
As at 31 March 2010
192SINGAPORE-REGISTERED
AIRCRAFT
Civil Aviation Authority of Singapore2009/2010 Annual Report
16 Civil Aviation Authority of Singapore2009/2010 Annual Report
17
that a new aircraft type complies with the applicable
Singapore airworthiness design standards and may
be imported into Singapore.
CAAS also granted approval for an additional
10 maintenance organisations, taking the total
to 107. The increase in the number of approved
maintenance organisations mirrors Singapore’s
growth as a Maintenance, Repair & Overhaul (MRO)
hub. Singapore is today the most comprehensive
MRO hub in Asia, with the aerospace industry
achieving a record output of $7 billion in 2009. With
Seletar Aerospace Park expected to be completed
by 2018, the number of maintenance organisations is
expected to grow even further.
For the aerospace manufacturing sector, the year in
review saw a 42.8 per cent increase in the granting
of Product Organisation Approvals (POAs) by CAAS.
Aviation manufacturing companies – Aircraft Interior,
Conco Aero Maintenance and Aero Industries – were
granted POAs for compliance with CAAS’ safety
standards. POAs allow these companies to enjoy the
privilege of issuing authorised release certificates for
the aircraft parts and components they manufacture.
CAAS also granted a Design Organisation Approval
(DOA) to AAR Engineering Services during the year.
Companies granted a DOA by CAAS may develop
design data, issue statements of compliance to
airworthiness design standards or approve minor
design changes, as part of their privileges.
We expect the increase in production and design
approval holders to continue to be significant, in line
with the growth of the aerospace manufacturing
industry in Singapore.
SAFETY OVERSIGHT
Civil Aviation Authority of Singapore2009/2010 Annual Report
18 19Civil Aviation Authority of Singapore2009/2010 Annual Report
glObalair hub
A Well-Connected and Competitive Global Air Hub
Through Singapore’s liberal aviation policy, Singapore has become the air hub of choice for international travellers and shippers. CAAS is committed to further enhance Singapore’s air hub status and connectivity to the world, allowing businesses to extend their market reach and forge partnerships as well as fostering cultural links and personal ties that span the globe.
20 Civil Aviation Authority of Singapore2009/2010 Annual Report
Civil Aviation Authority of Singapore2009/2010 Annual Report
21
GLOBAL AIR HUB
The trend towards greater liberalisation in air travel
has allowed airlines to compete more freely and to
develop their routes in response to market needs. This
results in improved air connectivity for passengers
and shippers who also benefit from more choice and
competitive rates.
For these reasons, CAAS has continued to actively
advocate the further liberalisation of air services
through various international and regional platforms.
For Singapore, the liberal air services policy that the
country adopts is a key enabler of its position as a
global air hub.
Pushing for Open Skies
In FY 2009/2010, CAAS successfully expanded
Singapore’s Air Services Agreements (ASAs) with 14
countries. Notably, the bilateral ASAs with Malaysia
and the Philippines were substantially expanded,
and two Open Skies Agreements (OSAs) were
concluded with Peru and Bulgaria. New ASAs were
also concluded with several countries in Africa and
Latin America, including Ethiopia, Ghana, Colombia
and Ecuador. These new and expanded ASAs open up
opportunities for both Singapore and foreign carriers
to launch and increase services between Singapore
and these regions, in response to market demand.
One forum in which CAAS continued its active
participation during the year was the annual
International Civil Aviation Organization’s Air Services
Negotiation Conference held in Istanbul, Turkey from
28 September to 2 October 2009. In November 2009,
Singapore also signed the International Air Transport
Association’s Multilateral Statement of Policy
Principles. The statement articulates the commitment
of signatory countries to modernise the air transport
industry by promoting greater commercial freedoms
for airlines to access markets and do business.
Connecting the Region
As a result of further air services liberalisation, the
year in review saw a significant growth in the number
of flights and air passenger movements between
Singapore-Malaysia and Singapore-the Philippines.
In 2009, passenger traffic between Singapore and
Malaysia surged 41 per cent from that in the previous
year. Much of this increase was due to the doubling
of traffic to Kota Kinabalu, Kuching, Langkawi and
Penang and new demand from travellers following the
establishment of new air links to Malaysian cities such
as Ipoh, Kuala Terengganu and Kuantan. Low Cost
Carriers (LCCs), in particular, have taken advantage of
the liberalisation of market access between Singapore
and Malaysia to mount more services, increasing their
weekly flights between the two countries by more
than 100 in the year. This represents a 47 per cent
increase in flights, from 236 weekly flights in January
2009 to 346 weekly flights in December 2009.
CAAS continued to work actively with its ASEAN
partners to expand air services within ASEAN as well
as between ASEAN and its key Dialogue Partners. The
ASEAN Roadmap for Integration of Air Travel Sector
(RIATS) Multilateral Agreement on Air Services and
Multilateral Agreement on the Full Liberalisation of
Air Freight Services entered into force in October
2009. These two agreements will allow unlimited
passenger services between ASEAN capital cities as
Civil Aviation Authority of Singapore2009/2010 Annual Report
22 23Civil Aviation Authority of Singapore2009/2010 Annual Report
well as unlimited cargo services between all ASEAN
cities with international airports. As at 31 March 2010,
six ASEAN Member States, namely Brunei, Malaysia,
Myanmar, Singapore, Thailand and Vietnam have
ratified the two agreements.
In March 2010, Singapore assumed the Chairmanship
of the ASEAN Air Transport Working Group (ATWG)
for a two-year term. In this role, CAAS is leading the
further liberalisation of ASEAN air services as well as
ASEAN’s negotiations with its key Dialogue Partners
such as China, India, Japan and the Republic of Korea
on air services agreements. The March 2010 ATWG
meeting is the first of four that Singapore will host
during her term.
Keeping Changi Competitive
One of the goals of the corporatisation of Changi
Airport and the restructuring of CAAS is to make
Changi Airport more competitive as an international
air hub. A forward-looking economic regulation
framework was put in place in July 2009 to ensure
competitive pricing of aeronautical fees and charges
by the Changi Airport licensee, while incentivising it
to be more innovative and efficient, and allowing it to
achieve sustainable economic returns.
On 1 October 2009, under the economic regulation
framework, CAAS determined the pricing caps on the
aeronautical charges that the Changi Airport operator
may set for the first regulatory period covering
the period FY 2009/2010, FY 2010/2011 and
FY 2011/2012. The Passenger Service Charge (PSC)
was also restructured to comprise two components –
a PSC payable to Changi Airport Group (CAG) and an
Aviation Levy payable to CAAS.
CAAS also issued two Codes of Practice and
accompanying advisory guidelines during the year to
ensure that service performance standards at Changi
and Seletar airports remain high. Compliance by the
airport operator in meeting the requirements set out
under the Codes is monitored by CAAS.
In addition, a separate Airport Competition Code and
accompanying advisory guidelines were issued by
CAAS to safeguard fair and effective competition in
the provision of airport services and facilities by the
airport operator.
GLOBAL AIR HUB
Civil Aviation Authority of Singapore2009/2010 Annual Report
24 25Civil Aviation Authority of Singapore2009/2010 Annual Report
inDustrYDEvElOpmEnt
A Vibrant and Sustainable Aviation Industry
As an enabler of the development of the aviation industry, CAAS promotes an environment where enterprises thrive, ideas flourish and innovation prevails. It supports the introduction and enhancement of aviation technology, products & processes, and works with the industry to develop and enhance its capabilities and human resources.
Photo courtesy of SIA Engineering Company
26 Civil Aviation Authority of Singapore2009/2010 Annual Report
Civil Aviation Authority of Singapore2009/2010 Annual Report
27
With its restructuring upon the corporatisation of
Changi Airport, CAAS embraced a more strategic
and active role in developing the wider aviation
industry. Envisioning a vibrant and dynamic aviation
ecosystem, CAAS is committed to building niches of
excellence, capabilities and manpower resources in
partnership with the industry.
CAAS has also stepped up its engagement with
other government agencies and industry players
to better understand the needs and challenges of
the aviation industry. This helped CAAS to develop
various initiatives and programmes to raise the
competitiveness and productivity of the industry in
the fast-changing aviation landscape.
Fund for Growth
In January 2010, Mr Raymond Lim, Minister for
Transport and Second Minister for Foreign Affairs,
announced the establishment of the $100 million
Aviation Development Fund (ADF) to promote and
develop the aviation sector, over a period of five
years. This announcement was made at the inaugural
Aviation Community Reception organised by CAAS,
with Mr Lim as the Guest-of-Honour and industry
leaders in attendance.
As a start, incentive programmes were launched
under the auspices of the Fund to support capability
development within the industry and encourage
continued innovation in the industry. The first
two ADF programmes – the Aviation Partnership
Programme and the Aviation Innovation Programme
– were launched in April 2010 with a budget at $25
million each. The Aviation Partnership Programme
(APP) promotes collaboration with industry partners
to drive the adoption of new industry standards and
processes to enhance productivity, effectiveness
and competitiveness in the industry. The Aviation
Innovation Programme (AIP), on the other hand,
offers companies incentive funding to come up with
innovative services and products, and develop new
capabilities. Other ADF programmes will be launched
in the near future.
Partnership with Industry
At the Aviation Community Reception, three separate
MOUs with industry partners in the aerospace as well
as air cargo and logistics sectors were signed. One
MOU sets out to promote Singapore as a leading
global air cargo and logistics hub by championing
the launch of the e-freight@Singapore programme.
The MOU was signed by CAAS with five other parties
namely, the Info-commmunications Development
Authority of Singapore, the International Air
Transport Association (IATA), the Singapore
Aircargo Agents Association, the Singapore Logistics
Association and the Singapore National Shippers’
Council. Building upon IATA’s e-freight programme,
e-freight@Singapore aims to integrate the air cargo
and logistics supply chain, promote the adoption of
paperless air freight documentation, and develop and
improve industry capabilities. The programme will
benefit shippers, freight forwarders, ground handlers,
airlines and government agencies by enabling faster
and more accurate processing of cargo shipments.
The other two MOUs with aerospace associations –
the Association of Aerospace Industries (Singapore)
or AAIS, and the Singapore Institute of Aerospace
INDUSTRY DEVELOPMENT
Civil Aviation Authority of Singapore2009/2010 Annual Report
28 29Civil Aviation Authority of Singapore2009/2010 Annual Report
Engineers or SIAE – set the framework for greater
collaboration to develop the aviation industry, attract
Singaporeans to careers in aviation and develop
manpower in the aviation cluster.
At the Singapore Airshow 2010 in February 2010,
CAAS worked with AAIS to promote the Singapore
Pavilion, which profiled home-grown aerospace
companies and their capabilities. CAAS also
hosted a reception for members of the Singapore
aviation community to foster networking within the
community. With the aim of attracting talent and
building the manpower base for the industry, CAAS
also participated in the Aviation Industry Induction
Programme during the Singapore Airshow 2010,
organised by AAIS in partnership with the Economic
Development Board and the Workforce Development
Agency. Nearly 2,000 students were invited to visit
the Airshow and learn about careers in aviation.
CAAS also collaborated with SIAE to organise
a sharing session by Authority Member Mr Lim
Yeow Khee. Mr Lim shared his experience and
passion for the industry with a select group of
polytechnic students.
Preparing Seletar for business
Following corporatisation, CAAS and Changi Airport
Group, which is also the Seletar Airport licensee,
have jointly undertaken the development of Seletar
Airport to meet the needs of the Seletar Aerospace
Park and general aviation at the airport.
Seletar Airport has been undergoing major and
extensive development works since 2008. These
works include the extension of the runway, the
enhancement of existing taxiways and aprons,
the addition of new taxiways and aprons and the
building of a new air traffic control tower and airport
emergency services facility. The upgrading works
also include installation of Instrument Landing Aids
(ILS), a ground-based instrument approach system
that provides precision guidance to approaching and
landing aircraft, allowing for aircraft operations in all
weather conditions. Completion of developmental
works is expected in 2013. They will increase the
airport’s capacity, enhance safety and security and
facilitate the use of Seletar Airport by a wider range
of aircraft and business jets.
INDUSTRY DEVELOPMENT
Civil Aviation Authority of Singapore2009/2010 Annual Report
30 31Civil Aviation Authority of Singapore2009/2010 Annual Report
air navigatiOn sErviCEs
Safe and Efficient Air Traffic Management
As a provider of air navigation services and solutions, CAAS delivers best-in-class service to airlines and pilots for safe and efficient air transport operations. It actively engages the international aviation community to improve air traffic management.
32 Civil Aviation Authority of Singapore2009/2010 Annual Report
Civil Aviation Authority of Singapore2009/2010 Annual Report
33
Despite the challenging economic environment,
Changi Tower and Singapore Air Traffic Control
Centre (SATCC) continued to handle increasing air
traffic at and around Changi Airport and within the
Singapore Flight Information Region (FIR), managing
more than 485,000 aircraft movements by over
80 airlines.
Maintaining a high standard of safety in air traffic
services, CAAS again achieved a deficiency-free
rating by the International Federation of Air Line
Pilots’ Association (IFALPA).
Industry Honours
A key highlight for the year in review was the special
industry recognition accorded to CAAS for efforts in
providing safe and efficient air navigation services
and solutions. Two major industry awards were
presented to CAAS.
In June 2009, CAAS received the prestigious
International Air Transport Association (IATA) Eagle
Award for the ‘Best Air Navigation Service Provider’
for 2009. The award recognised in particular
CAAS’ efforts in enhancing air traffic management
procedures and runway capacity at Changi Airport
over the last five years.
In October 2009, CAAS was named the Air
Navigation Services Provider of the Year by the
Centre of Asia Pacific Aviation (CAPA). This inaugural
CAPA award recognises the vital role played by Air
Navigation Service Providers (ANSPs) and their
governments in improving air traffic management,
supporting airline operational efficiencies and
reducing carbon emissions in the process.
moving Towards Performance-based Navigation
Rising air traffic volumes has made it a busy year
for CAAS’ provision of air navigation services.
To continue to ensure air traffic efficiency and
airspace capacity, CAAS is committed to continually
improve air traffic management through adopting
Performance-Based Navigation (PBN) procedures.
These also contribute to the greening of the air
transport sector by reducing aircraft fuel use
and carbon emissions, thereby contributing to
sustainable development.
One efficiency enhancement and environmentally-
friendly initiative saw CAAS commence operational
trials for Continuous Descent Operations at Changi
Airport in September 2009. This exercise saw
arriving Singapore Airlines flights adopting their
optimal profile from cruise level to landing, which
resulted in reducing flight times, fuel burn and
carbon emissions.
CAAS also contributes to regional air traffic
management initiatives through active participation
in the ICAO and regional aviation forums, including
the chairing of key regional task forces. This includes
working with other Asia Pacific States and industry
partners in the optimisation of routes over the Bay
of Bengal and South China Sea to reduce congestion
and aircraft fuel consumption. Another such effort
is the implementation of improved horizontal
separation for two major routes servicing Changi
AIR NAVIGATION SERVICES
Civil Aviation Authority of Singapore2009/2010 Annual Report
34 35Civil Aviation Authority of Singapore2009/2010 Annual Report
and North Asia, allowing increased capacity and
more optimal flight levels to be assigned to en-
route flights. CAAS is currently looking into similar
improvements in horizontal separation for two major
routes serving Australasia. In addition, the route
structure is being reviewed for further improvement.
In February 2010, CAAS joined the Asia-Pacific
Initiative to Reduce Emissions (ASPIRE), a
partnership that includes Airservices Australia,
Airways New Zealand, Federal Aviation
Administration of the United States, and Civil
Aviation Bureau of Japan. Leveraging on existing
technologies and best practice procedures, the first
multi-sector ‘Green’ flight from Los Angeles, USA
through Narita, Japan to Singapore by a Singapore
Airlines flight was successfully conducted. The
demonstration flight presented the potential to
reduce flight time, save fuel and cut down carbon
emissions. CAAS has incorporated many of these
best practices into its operations.
Stepping up with Technology
Leveraging on state-of-the-art technologies is vital to
the safe and efficient management of air traffic.
Surveillance capability over the Singapore Flight
Information Region was stepped up during the
year with the introduction of Automatic Dependent
Surveillance – Broadcast (ADS-B) technology.
ADS-B offers the advantages of longer range, higher
accuracy and greater cost efficiency compared to
radars, positioning it to be a key element of future air
traffic management.
CAAS continues to make significant progress in the
implementation of a new air traffic management
system, LORADS III. The recent completion of the
systems design review, which encompasses defining
system requirements, culminated in a functional
demonstration test.
As part of the LORADS III project, a next generation
optic fibre data communications network is being
implemented. This allows for the speedy transfer of
high volumes of real-time operational data between
systems in a secure environment.
AIR NAVIGATION SERVICES
Civil Aviation Authority of Singapore2009/2010 Annual Report
36 37Civil Aviation Authority of Singapore2009/2010 Annual Report
sharingknOwlEDgEA Centre of Aviation Knowledge
and Capability Development
As a centre of aviation learning and thought leadership, CAAS shares its knowledge and experience globally and provides a platform for the exchange of knowledge and ideas. CAAS also contributes to building Singapore into a centre of excellence for aviation knowledge and human resource development for the aviation industry.
38 Civil Aviation Authority of Singapore2009/2010 Annual Report
Civil Aviation Authority of Singapore2009/2010 Annual Report
39
Through its aviation training arm, the Singapore
Aviation Academy (SAA), CAAS enables the sharing
and advancement of aviation knowledge and
expertise. As Singapore’s premier aviation training
centre, SAA provides the highest quality of training
and facilitates the sharing of aviation knowledge
and experiences. With its international profile, SAA
also contributes to Singapore’s leading role in the
international aviation arena.
Expanding Training Scope and Reach
One of SAA’s top priorities is to develop and conduct
programmes that meet the training demands of
national and international aviation communities at
the operational and management level. Many of
these programmes were designed to assist States to
comply with and implement the ICAO standards and
recommended practices on various aspects
of aviation.
Over the course of FY 2009/2010, SAA conducted
124 training programmes and recorded a 14 per
cent increase in participation numbers with 5,765
participants receiving training at SAA. The Academy
is increasingly being recognised for its high quality
training even beyond our shores. In the year under
review, SAA trained 1,427 overseas participants from
124 nations.
New programmes on topical issues and the latest
developments in aviation were introduced. They
include courses on State Safety Programme,
Environmental Management in Aviation, and Auditing
Techniques for Flight Personnel Licensing. On the
airport-related front, new programmes on Strategic
Airport Marketing and Branding, Airport Revenue
and Airport Ramp Safety were introduced.
To further extend SAA’s reach overseas, three on-site
training programmes were conducted in various
regions, jointly organised with the respective regional
Civil Aviation Commissions. Two of which, focusing
on aviation safety management, were held in Kenya
and Morocco. The third on civil aviation management
was held in Argentina.
SAA held its 3rd International Advisory Council
Meeting in August 2009. The meeting, chaired
by Minister for Transport and Second Minister for
Foreign Affairs, Mr Raymond Lim, saw prominent
experts representing various regions and sectors of
the aviation industry contributing useful views and
ideas. The Council offered advice on aviation trends
and emerging issues, including how SAA could
expand the depth and reach of its programmes.
Hosting Aviation Leaders
SAA hosted many forums and conferences
throughout the year to promote knowledge sharing
and networking within the international aviation
community. In August 2009, SAA organised the
3rd World Civil Aviation Chief Executives Forum.
More than 100 civil aviation chief executives and
senior officials from 40 nations and 10 international
and regional organisations attended the forum on
‘Aviation in Challenging Times: Building Resilience,
Leading Recovery.’ Twenty international experts
spoke on topics such as the challenges and
SHARING KNOWLEDGE
Civil Aviation Authority of Singapore2009/2010 Annual Report
40 41Civil Aviation Authority of Singapore2009/2010 Annual Report
opportunities of emerging aviation markets,
among others.
SAA collaborated with the Ministry of Transport,
IATA and Singapore Airshow & Events to jointly
organise the second Aviation Leadership Summit
on 1 February 2010. The Summit, which was held in
conjunction with the Singapore Airshow, engaged
key stakeholders in discussions on the challenges
confronting global civil aviation.
SAA also organised an Aircraft Accident Crisis
Preparedness and Management Conference jointly
with the Ministry of Transport in March 2010. The
conference brought together over 120 aviation
professionals from 28 countries to deliberate on
issues relating to crisis preparedness in aircraft
accident management.
Collaborating For Growth
SAA strives to stay at the forefront of aviation
knowledge and industry developments by forging
alliances with well-respected aviation organisations
and institutions worldwide.
One of the year’s highlights was the signing of a
Memorandum of Understanding (MOU) between
CAAS and Embry-Riddle Aeronautical University. The
MOU provides for, among other things, the conduct
of joint programmes and exchange of expertise and
information. The first joint programme is a Masters in
Business Administration in Aviation (MBAA), slated
for commencement in the first quarter of 2011.
In other tie-ups, SAA signed an MOU with the Civil
Air Navigation Services Organisation (CANSO) to
collaborate on the development of joint training
programmes. SAA and CANSO jointly organised the
CANSO Safety Seminar in November 2009.
SAA also played host to numerous conferences and
meetings organised by the Asia-Pacific Economic
Cooperation (APEC), Association of Southeast
Asian Nations (ASEAN), CANSO, European Aviation
Safety Agency (EASA), International Air Transport
Association (IATA) and ICAO. Some of the events
held at the Academy include the APEC Aviation
Emissions Task Force meeting, ICAO Working Group
Meeting on Developing a Comprehensive Aviation
Security Strategy, and an EASA Regional Conference.
SHARING KNOWLEDGE
Civil Aviation Authority of Singapore2009/2010 Annual Report
42 43Civil Aviation Authority of Singapore2009/2010 Annual Report
intErnatiOnal COntributiOn
Contributing to the Developmentof International Civil Aviation
As a member of the international civil aviation community, CAAS contributes expertise and resources towards the development and harmonisation of international aviation policies and standards to ensure safe, secure, efficient and sustainable air transport globally.
44 Civil Aviation Authority of Singapore2009/2010 Annual Report
Civil Aviation Authority of Singapore2009/2010 Annual Report
45
Committed to being an active member of the
international civil aviation community, CAAS
continually strives to contribute meaningfully
to shaping international aviation policies for the
sustainable development of civil aviation globally.
Singapore has been serving as a member of the
Council of the ICAO since 2003. Singapore also
endeavours to forge strong partnerships with other
States and aviation players through knowledge
sharing, cooperation and mutual assistance.
Contributing Expertise
Singapore’s support of ICAO’s strategic objectives is
broad-based and expertise-driven, involving many
of our dedicated professionals. A CAAS officer, Mr
Mervyn Fernando, who has been serving in the ICAO
Council’s Air Navigation Commission (ANC) since
2005, was appointed as the President of the ANC
for the 2010 term. Singapore also contributed as a
member in over 70 ICAO expert bodies. CAAS led
some 14 of these platforms, which covered diverse
aspects of civil aviation, ranging from safety, security,
law, medicine and environmental protection. To
support ICAO in the transition to a more systematic
model of safety management in aviation, CAAS
seconded a technical expert to the ICAO Air
Navigation Bureau (ANB) in March 2010 to assist in the
implementation of the global State Safety Programme.
Aviation Medicine. Singapore championed ICAO’s
efforts to mitigate high-level health threats arising
from air travel. This led to the adoption of ICAO’s
guidelines on health screening by various civil
aviation authorities around the world. CAAS also
worked with the World Health Organisation to
implement guidelines for the mitigation of public
health emergencies via air travel. In addition,
Singapore is playing an active role in ICAO’s
Cooperative Arrangement for Preventing the Spread
of Communicable Diseases through Air Travel
(CAPSCA), which gained momentum when the H1N1
pandemic surfaced in 2009. Tapping on its past
experience in handling the Severe Acute Respiratory
Syndrome (SARS) outbreak in 2003, the Chairman
of the CAAS Civil Aviation Medical Board (CAMB)
served as a medical expert/advisor to CAPSCA on
this latest epidemic. CAPSCA is set to be established
as an international organisation by October 2010.
International Aviation Law. Singapore actively
supports ICAO’s efforts to strengthen the
international legal framework and infrastructure
which enables the aviation industry to function
seamlessly and achieve sustainable growth.
Singapore’s approach to international aviation law is
facilitative and pragmatic, focusing on establishing
realistic and sound legal standards and requirements
while being mindful of implementation practicalities
and the impact on the aviation industry. Singapore
contributed actively to the development of two
recently concluded international treaties, which
updated the rules relating to compensation to third
parties for damage from aircraft.
Aviation Security. Singapore champions efforts
by ICAO’s Aviation Security (AVSEC) Panel to set
global aviation security standards across all its 190
Member States. Singapore also plays an active role
in strengthening aviation security in the region, with
CAAS engaging its regional counterparts in the
INTERNATIONAL CONTRIBUTION
Civil Aviation Authority of Singapore2009/2010 Annual Report
46 47Civil Aviation Authority of Singapore2009/2010 Annual Report
exchange of aviation security best practices
and the raising of regional standards in aviation
security training.
Aviation and Environmental Protection. In recent
years, CAAS has stepped up its contribution in
response to growing calls internationally for the
aviation industry to play its part in reducing its
impact on the environment and climate change.
CAAS actively collaborates with the industry
and other air navigation service providers to
leverage on technology and cooperation to effect
pragmatic solutions to reduce aircraft emissions.
CAAS Director-General, Mr Yap Ong Heng, was
elected as Chair of the ICAO High Level Meeting on
International Aviation and Climate Change (HLM-
IACC) held in Montréal, Canada in October 2009.
The meeting concluded with a declaration by ICAO
Contracting States reaffirming ICAO’s leadership
in addressing international aviation emissions, and
collective commitments to achieve global fuel
efficiency targets and to consider more ambitious
emission goals.
Aviation Training Across borders
Singapore is a firm advocate of human resource
development for civil aviation and has extended
numerous training fellowships under various
initiatives such as the ICAO-Singapore Developing
Country Training (SDCTP) Programmes. These
training programmes provide for developing
countries to attend courses at the Singapore Aviation
Academy (SAA). This year, the ICAO-SDCP was
renewed for three more years from 2010 to 2012, with
an increase of training fellowships from 150 to 180, in
response to overwhelming demand from
States worldwide.
Concurrently, CAAS renewed its Memorandum Of
Understanding (MOU) with the African, Arab, Latin
American and European Civil Aviation Commissions
to further extend and expand cooperation in civil
aviation matters between Singapore and the
respective regions.
Hosting International Guests
In August 2009, ICAO Council President Mr
Roberto Kobeh Gonzaléz visited Singapore under a
Distinguished Visitor Programme at the invitation of
the Singapore Government. During his visit, Mr Kobeh
delivered the keynote address at the World Civil
Aviation Chief Executives Forum at the SAA. As part
of the programme, he also toured the Aviation and
Aerospace Centre of Temasek Polytechnic, and met
with representatives from the Lufthansa Technical
Training Centre and Singapore Technologies Aviation
Training Academy, among other things.
The Singapore Airshow and Aviation Leadership
Summit provided an excellent platform for overseas
guests and members of the industry to network and
exchange views relating to the dynamic aviation
environment. CAAS played host to some 100 key
officials and aviation principals from some 50
countries and international organisations. More than
30 Director-Generals of Civil Aviation and Chief
Executives of Aviation Organisations worldwide
attended the event in February 2010.
INTERNATIONAL CONTRIBUTION
Civil Aviation Authority of Singapore2009/2010 Annual Report
48 49Civil Aviation Authority of Singapore2009/2010 Annual Report
air traffiC statistiCs
1,633,7912009
1,856,9402008
1,894,7672007
1,911,2142006
1,833,7212005
AIRFREIGHTMOVEMENTS
(Tonnes)
240,3602009
231,9262008
220,7462007
214,2242006
204,1382005
COMMERCIAL AIRCRAFT
MOVEMENTS
Singapore Changi Airport
37,203,9782009
37,694,8242008
36,701,5562007
35,033,0832006
32,430,8562005
PASSENGER MOVEMENTS
50 Civil Aviation Authority of Singapore2009/2010 Annual Report
51Civil Aviation Authority of Singapore2009/2010 Annual Report
CONTENTS
Statement by the Authority Members of the Civil Aviation Authority of Singapore 54 Independent Auditors’
Report 55 Statements of Financial Position 57 Statements of Comprehensive Income 59 Statements
of Changes in Equity 60 Consolidated Statement of Cash Flows 62 Notes to Financial Statements 65
Financial StatementS
52 Civil Aviation Authority of Singapore2009/2010 Annual Report
53Civil Aviation Authority of Singapore2009/2010 Annual Report
In our opinion,
a. the accompanying consolidated financial statements of Civil Aviation Authority of Singapore
(the “Authority”) and its subsidiaries (the “Group”) are properly drawn up in accordance with the provisions
of the Civil Aviation Authority of Singapore Act 2009 (No. 17 of 2009) (the “Act”), Singapore Statutory
Board Financial Reporting Standards (“SB-FRS”) and Singapore Financial Reporting Standards (“FRS”) so
as to give a true and fair view of the state of affairs of the Authority and the Group as at 31 March 2010, and
of the results and changes in equity of the Group and of the Authority and cash flows of the Group for the
year ended on that date;
b. proper accounting and other records have been kept, including records of all assets of the Authority whether
purchased, donated or otherwise have been kept in accordance with the provisions of the Act; and
c. the receipts, expenditure, investment of moneys and the acquisition and disposal of assets by the Authority
during the financial year have been in accordance with the provisions of the Act.
ON BEHALF OF THE AUTHORITY
LEE HSIEN YANg
Chairman
YAp ONg HENg
Director-general
Report on the Financial Statements
We have audited the accompanying financial statements of the Civil Aviation Authority of Singapore (the
“Authority”) and its subsidiaries (the “Group”) which comprise the statements of financial position as at
31 March 2010, the statements of comprehensive income and statements of changes in equity of the Authority
and the Group and statement of cash flows of the Group for the year then ended, and a summary of significant
accounting policies and other explanatory notes, as set out on pages 57 to 127.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with the provisions of the Civil Aviation Authority of Singapore Act 2009 (No. 17 of 2009) (the “Act”), Singapore
Statutory Board Financial Reporting Standards (“SB-FRS”) and Singapore Financial Reporting Standards
(“FRS”). This responsibility includes:
a. designing, implementing and maintaining internal controls relevant to the preparation of and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error;
b. selecting and applying appropriate accounting policies; and
c. making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements
are free from material misstatement.
Statement by the Authority Members of the Civil Aviation Authority Of Singapore
Independent Auditors’ Report to the Authority Members on the Financial Statements of Civil Aviation Authority Of SingaporeFor the financial year ended 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
54 Civil Aviation Authority of Singapore2009/2010 Annual Report
55
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion,
a. the consolidated financial statements of the Group and the statement of financial position, statement
of comprehensive income and statement of changes in equity of the Authority are properly drawn up in
accordance with the provisions of the Act, SB-FRS and FRS so as to give a true and fair view of the state of
affairs of the Group and of the Authority as at 31 March 2010 and of the results and changes in equity of the
Group and of the Authority, and cash flows of the Group for the year ended on that date; and
b. the accounting and other records, including records of all assets of the Authority whether purchased,
donated or otherwise, have been kept in accordance with the provisions of the Act.
Report on other Legal and Regulatory Requirements
During the course of our audit, nothing came to our attention that caused us to believe that the receipts,
expenditure, investment of moneys and the acquisition and disposal of assets by the Authority during the
financial year have not been in accordance with the provisions of the Act.
public Accountants and
Certified public Accountants
Singapore
23 June 2010
Independent Auditors’ Report to the Authority Members on the Financial Statements of Civil Aviation Authority Of SingaporeFor the financial year ended 31 March 2010
group Authority
Note2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000(restated) (restated)
Equity
Capital account 7 2,085,962 2,976,547 2,085,962 2,976,547
Reserves 8 (1,258) 2,797,343 – 2,850,797
2,084,704 5,773,890 2,085,962 5,827,344
Represented by:
Non-current assets
Property, plant and equipment 9 1,637,101 1,651,409 1,637,101 1,651,409
Capital work-in-progress 10 119,097 36,823 119,097 36,823
Interest in jointly controlled entities 12 33,883 28,269 35,141 34,662
Long-term investments 13 3,750 3,750 3,750 3,750
Derivative financial instruments 14 9,556 4,413 9,556 4,413
Staff loans 15 805 925 805 925
Prepaid lease 16 10,423 10,833 10,423 10,833
1,814,615 1,736,422 1,815,873 1,742,815
Current assets
Funds with investment managers 17 50,914 35,214 50,914 35,214
Trade debtors and accrued income 18 107,376 28,949 107,376 29,017
Other debtors and prepayments 19 48,081 48,181 48,081 48,207
Amount due from Changi Airport Group (“CAG”) 20 3,278,655 – 3,278,655 –
Cash and cash equivalents 22 824,833 1,101,786 824,833 1,101,786
4,309,859 1,214,130 4,309,859 1,214,224
Assets classified as held for sale 23 – 3,315,210 – 3,509,825
4,309,859 4,529,340 4,309,859 4,724,049
Civil Aviation Authority of Singapore and its SubsidiariesStatements of Financial positionAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
56 Civil Aviation Authority of Singapore2009/2010 Annual Report
57
Civil Aviation Authority of Singapore and its SubsidiariesStatements of Financial positionAs at 31 March 2010
Civil Aviation Authority of Singapore and its SubsidiariesStatements of Comprehensive IncomeYear ended 31 March 2010
See accompanying notes to financial statements. See accompanying notes to financial statements.
group Authority
Note2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000(restated) (restated)
Current liabilities
Trade creditors and accrued expenses 24 137,434 218,454 137,434 218,454
Other creditors 25 11,104 17,121 11,104 17,121
Contribution payable to Government
Consolidated Fund 27 19,923 69,102 19,923 69,102
Amount owing to MOF:
– Return of surplus 28 560,000 – 560,000 –
– Return of consideration on transfer of
airport assets & liabilities 29 3,278,655 – 3,278,655 –
4,007,116 304,677 4,007,116 304,677
Liabilities directly associated with assets
classified as held for sale 23 – 156,583 – 304,231
4,007,116 461,260 4,007,116 608,908
Net current assets 302,743 4,068,080 302,743 4,115,141
2,117,358 5,804,502 2,118,616 5,857,956
Less:
Non-current liabilities
Deferred income 30 10,424 10,987 10,424 10,987
Provision for pension and post retirement
medical benefits 32 22,230 19,625 22,230 19,625
32,654 30,612 32,654 30,612
2,084,704 5,773,890 2,085,962 5,827,344
group Authority
Note2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000(restated) (restated)
Continuing operations
Income
Airport licence fee 3,300 – 3,300 –
Aviation levy 55,509 – 55,509 –
Annual ground rent 56,250 – 56,250 –
Air navigation service charge 71,070 – 71,070 –
Aviation training programme fee 6,783 5,374 6,783 5,374
Certification, examination and licence fee 12,247 11,560 12,247 11,560
Other operating income 8,090 4,776 8,090 4,776
213,249 21,710 213,249 21,710
Expenditure
Salaries, wages and staff benefits 34 71,748 59,180 71,748 59,180
Maintenance of buildings and equipment 32,598 25,193 32,598 25,193
Depreciation of property, plant and equipment 9 52,586 38,338 52,586 38,338
Property tax 13,005 23,563 13,005 23,563
Services related expenses 18,582 13,011 18,582 13,011
Other operating expenses 10,826 2,883 10,826 2,883
199,345 162,168 199,345 162,168
Non-operating income/(loss), net 35 52,989 (14,563) 52,989 (14,562)
Share of results of jointly controlled entities 12 5,382 (2,598) – –
Surplus/(deficit) for the year before
contribution to government Consolidated
Fund and income tax 72,275 (157,619) 66,893 (155,020)
Contribution to Government Consolidated Fund 28 (11,372) – (11,372) –
Net surplus/(deficit) from continuing
operations for the year 60,903 (157,619) 55,521 (155,020)
Net surplus from discontinued operations for
the year 38 31,826 396,784 41,752 468,990
Net surplus for the year 92,729 239,165 97,273 313,970
Other comprehensive income
Currency translation reserve 39 27,855 23,310 – –
Revaluation reserve 39 28,987 (29,668) – –
Other comprehensive income for the year,
net of tax 56,842 (6,358) – –
Total comprehensive income for the year 149,571 232,807 97,273 313,970
Civil Aviation Authority of Singapore2009/2010 Annual Report
58 Civil Aviation Authority of Singapore2009/2010 Annual Report
59
Civil Aviation Authority of Singapore and its SubsidiariesStatements of Changes in EquityYear ended 31 March 2010
Note
CapitalaccountS$’000
Currencytranslation
reserve S$’000
Revaluation reserve S$’000
RestrictedreserveS$’000
Accumulated surplus/
(loss)S$’000
TotalS$’000
group
Balance at 1 April 2008 2,976,546 (51,165) 681 – 2,715,020 5,641,082
Total comprehensive income
for the year – 23,310 (29,668) – 239,165 232,807
Issue of share capital 7 1 – – – – 1
Transfer of accumulated surplus
to restricted reserve 8 – – – 102 (102) –
Return of surplus to Government – – – – (100,000) (100,000)
Balance at 31 March 2009 2,976,547 (27,855) (28,987) 102 2,854,083 5,773,890
Total comprehensive income
for the year 39 – 27,855 28,987 – 92,729 149,571
Loss on restricted reserve upon
disposal of a subsidiary company – – – (102) – (102)
Return of surplus to Government 28 – – – – (560,000) (560,000)
Return of consideration
on transfer of airport assets &
liabilities to Government 29 (890,585) – – – (2,388,070) (3,278,655)
Balance at 31 March 2010 2,085,962 – – – (1,258) 2,084,704
Note
CapitalaccountS$’000
AccumulatedsurplusS$’000
TotalS$’000
Authority
Balance at 1 April 2008 2,976,546 2,636,827 5,613,373
Total comprehensive income for the year – 313,970 313,970
Issue of share capital 1 – 1
Return of surplus to Government – (100,000) (100,000)
Balance at 31 March 2009 2,976,547 2,850,797 5,827,344
Total comprehensive income for the year – 97,273 97,273
Return of surplus to government 28 – (560,000) (560,000)
Return of consideration on transfer of airport assets &
liabilities to government 29 (890,585) (2,388,070) (3,278,655)
Balance at 31 March 2010 2,085,962 – 2,085,962
See accompanying notes to financial statements.
Civil Aviation Authority of Singapore2009/2010 Annual Report
60 Civil Aviation Authority of Singapore2009/2010 Annual Report
61
Civil Aviation Authority of Singapore and its SubsidiariesConsolidated Statement of Cash FlowsYear ended 31 March 2010
group
Note2009/10
S$’0002008/09
S$’000
Operating activities
Surplus for the year before contribution to Government Consolidated Fund
and income tax (Note B) 112,252 308,271
Adjustments for:
Share of results of jointly controlled entities (5,382) 3,757
Depreciation of property, plant and equipment 9 52,586 332,298
Impairment on property, plant and equipment relating to assets held for sale 9 59,363 –
Loss on disposal of property, plant and equipment 43 1,261
Loss/(Income) from funds with investment managers (14,983) 37,988
Changes in fair value of forward exchange contracts (11,223) (6,582)
Interest income (3,825) (19,188)
Dividends (204) (910)
Write-back of provision for obligations under guarantees – (2,708)
Allowance for doubtful debts 32 1,440
Provision for pension and post retirement medical benefits 3,880 815
Provision for gratuity – 1,565
Amortisation of deferred income (576) (5,136)
Amortisation of prepaid lease 410 410
Loss on disposal of investment in subsidiary group 39 70,240 –
Operating cash flows before movements in working capital 262,613 653,281
Inventories 11,076 2,378
Trade debtors and accrued income (21,013) 7,222
Other debtors and prepayments C (586,702) (1,169)
Trade creditors and accrued expenses (95,020) 73,019
Other creditors D (30,325) (1,694)
Staff loans repaid 381 300
Pension and post retirement medical benefits paid (1,267) (2,713)
Cash (used in)/generated from operations (460,257) 730,624
Contribution paid to Government Consolidated Fund (69,102) (67,631)
Income tax paid (2,879) (263)
Net cash (used in)/from operating activities (532,238) 662,730
group
Note2009/10
S$’0002008/09
S$’000
Investing activities
Interest income received 3,872 19,452
Purchase of funds with investment managers (717) –
Purchase of available-for-sale assets C – (52,690)
Investment in jointly controlled entity 12,245 (800)
Purchase of property, plant and equipment and payments for capital
work-in-progress (404,154) (313,258)
Proceeds from disposal of property, plant and equipment C – 179
Dividends received 204 910
Proceeds from divestments of funds with investment managers – 363,590
Net cash (used in)/from investing activities (388,550) 17,383
Financing activities
Issue of share capital – 1
Surplus returned to Government D – (100,000)
Repayment of finance leases (702) (903)
Withdrawal of fixed deposits pledged 5,963 1,046
Net cash from/(used in) financing activities 5,261 (99,856)
Net (decrease)/increase in cash and cash equivalents held (915,527) 580,257
Cash and cash equivalents at beginning of the year 1,740,360 1,133,946
Effects of exchange rate changes on balances held in foreign currency – 26,157
Cash and cash equivalents at end of the year A 824,833 1,740,360
Note A:
Cash and cash equivalents comprise:
Bank and cash balances 22 824,833 1,746,323
Less: Fixed deposits pledged – (5,963)
824,833 1,740,360
Certain fixed deposits were pledged to banks in the ordinary course of business in favour of third parties and to
secure standby letters of credit for a jointly controlled entity.
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Civil Aviation Authority of Singapore and its SubsidiariesConsolidated Statement of Cash FlowsYear ended at 31 March 2010
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
See accompanying notes to financial statements.
1. gENERAL
The Civil Aviation Authority of Singapore (the “Authority”) was established under the Civil Aviation Authority
of Singapore Act (Cap. 41, 1985 Revised Edition) and reconstituted under the Civil Aviation Authority of
Singapore Act 2009 (Act No 17 of 2009)(“the Act”). The supervisory ministry is the Ministry of Transport.
Its principal place of business and registered office is at 4th level, Terminal 2, Singapore Changi Airport,
Singapore 819643.
On 1 July 2009, the Civil Aviation Authority of Singapore Act 2009 took effect to:
i. provide for the transfer of airport undertaking of the Authority to a successor company – Changi Airport
Group (Singapore) Pte Ltd (“CAG”);
ii. provide for the reconstitution of the Authority;
iii. provide for the regulation of the operation of airports and imposition of economic controls at airports;
iv. repeal the Civil Aviation Authority of Singapore Act (Chapter 41 of the 1985 Revised Edition); and
v. make consequential amendments to other written laws relating to airports.
The principal functions and duties of the Authority after the reconstitution are:
i. to regulate safety and promote safety and security in civil aviation and to exercise safety regulatory
oversight over civil aviation operations in Singapore and the operation of Singapore aircraft outside
Singapore;
ii. to exercise licensing and regulatory functions in respect of the provision of air services, the operation of
airports and the provision of airport services and facilities in Singapore;
iii. to regulate and promote competition and fair and efficient market conduct in the operation of airports
and the provision of airport services and facilities or, in the absence of a competitive market, to prevent
the misuse or abuse of monopoly or market power;
iv. to regulate, encourage, promote, facilitate and assist in the use, development and improvement of air
services, airports and aerospace industries;
v. to ensure that there are, provided in every airport (whether by itself or by any airport licensee), adequate
and efficient airport services and facilities on such terms as the Authority thinks expedient;
vi. to provide air navigation services within the Singapore Flight Information Region and such other area as
the Minister may authorise;
Note B:
Surplus for the year ended before contribution to Government Consolidated Fund and income tax comprised:
2009/10S$’000
2008/09S$’000
Surplus/(deficit) from continuing operations 72,275 (157,619)
Surplus from discontinued operations (Note 38) 39,977 465,890
Surplus before contribution to Government Consolidated Fund & Income Tax 112,252 308,271
Note C:
As at 31 March 2010, the aggregate consideration value for the transfer of airport assets and liabilities of
S$3,278,655,000 (2008/09: S$Nil) was receivable from CAG. This consideration included the transfer of
property, plant and equipment to CAG at a carrying amount of S$2,350,764,000 (2008/09: S$Nil) (Note 20).
Note D:
As at 31 March 2010, the surplus to be returned to the Government of S$560,000,000 (2008/09: S$Nil) and the
aggregate consideration value on the transfer of airport assets and liabilities to be returned to the Government
of S$3,278,655,000 (2008/09: S$Nil) (Note 29) remained unpaid.
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64 Civil Aviation Authority of Singapore2009/2010 Annual Report
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vii. to provide or co-ordinate search and rescue services to aircraft in distress within the Singapore Search
and Rescue Region;
viii. to encourage, promote, facilitate and assist in the development and improvement of civil aviation
capabilities, skills and services in Singapore;
ix. to provide technical, consultancy and management services relating to any of the matters referred to in
this subsection;
x. to act internationally as the national authority or body representing Singapore in respect of matters
relating to civil aviation;
xi. to discharge or facilitate the discharge of international obligations of the Government as a Contracting
State or otherwise in respect of civil aviation;
xii. to collaborate and enter into agreements and arrangements with organisations in respect of any matter
relating to civil aviation and any other matter as the Authority thinks expedient;
xiii. to foster appropriate education and provide training and training facilities in respect of any matter
relating to civil aviation;
xiv. to advise the Government on all matters relating to civil aviation;
xv. to promote understanding of civil aviation policies and programmes;
xvi. to promote research and development on any matter relating to civil aviation; and
xvii. to carry out such other functions and duties as are conferred or imposed on the Authority by or under
the Civil Aviation Authority of Singapore Act or any other written law.
The principal activities of the subsidiaries and jointly controlled entities are disclosed in Notes 11 and 12
respectively.
The financial statements are expressed in Singapore dollars and all values are rounded to the nearest
thousand (S$’000) except when otherwise indicated.
The consolidated financial statements of the Group and statement of financial position, statement of
comprehensive income and statement of changes in equity of the Authority for the year ended 31 March
2010 were authorised for issue by the Authority members on 23 June 2010.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
2. CORpORATISATION OF CHANgI AIRpORT & RESTRUCTURINg OF CAAS
In August 2008, the Ministry of Transport announced the corporatisation of Changi Airport and the
restructuring of CAAS. The key objective was to strengthen Changi Airport’s position as a premier air hub
by allowing for more focused roles and greater flexibility in meeting future challenges in a rapidly changing
aviation landscape.
On 1 July 2009, a new entity, Changi Airport Group (Singapore) Pte Ltd (“CAG”) was set up to operate Changi
Airport, manage its operations, commercial activities and emergency services, as well as its investments and
projects in foreign airports. CAAS was reconstituted to focus on strategic and regulatory functions such as
air services negotiations, safety, service and economic regulation, as well as continue with the provision of
air navigation services and the development of the Singapore Aviation Academy into a world class centre for
knowledge sharing and international standard aviation related training institution.
3. SUMMARY OF SIgNIFICANT ACCOUNTINg pOLICIES
BASIS OF ACCOUNTING – The financial statements have been prepared in accordance with the historical
cost convention, except as disclosed in the accounting policies below, and are drawn up in accordance
with the provisions of the Civil Aviation Authority of Singapore Act (the “Act”), Singapore Statutory Board
Financial Reporting Standards (“SB-FRS”) and Singapore Financial Reporting Standards (“FRS”). As a
statutory board, the Authority is required to comply with policies and instructions issued from time to time
by the Ministry of Finance (“MOF”) and other central government agencies.
ADOPTION OF NEW AND REVISED STANDARDS – Pursuant to the Accounting Standards Act which was
introduced and came into effect on 1 November 2007 and Circular Number 1/2008 issued by the Accountant-
General on 11 March 2008, Singapore Statutory Boards are required to prepare and present their financial
statements in accordance with the SB-FRS including related interpretations (“INT FRS”) promulgated by the
Accountant-General.
In the current financial year, the Group has adopted all the new and revised SB-FRSs and INT SB-FRS that are
relevant to its operations and effective for annual periods beginning on or after 1 April 2009. The adoption of
these new/revised SB-FRSs and INT SB-FRSs does not result in changes to the Group’s accounting policies
and has no material effect on the amounts reported for the current or prior years except as disclosed below:
FRS 1 – Presentation of Financial Statement (Revised)
SB-FRS 1 – Presentation of Financial Statements (Revised)
FRS and SB-FRS 1 (2008) have introduced terminology changes (including revised titles for the financial
statements) and changes in the format and content of the financial statements. In addition, the revised
Standard requires the presentation of a third statement of financial position at the beginning of the earliest
comparative period presented if the entity applies new accounting policies retrospectively or makes
retrospective restatements or reclassifies items in the financial statements.
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Amendments to FRS 107 Financial Instruments: Disclosures – Improving Disclosures about Financial
Instruments
Amendments to SB-FRS 107 Financial Instruments: Disclosures – Improving Disclosures about Financial
Instruments
The amendments to FRS and SB-FRS 107 expand the disclosures required in respect of fair value measurements
and liquidity risk. The Group has elected not to provide comparative information for these expanded
disclosures in the current year in accordance with the transitional reliefs offered in these amendments.
At the date of authorisation of these financial statements, the following SB-FRS, FRS, INT SB-FRS and
amendments to SB-FRS that are relevant to the Group were issued but not effective:
Improvements to Statutory Board Financial Reporting Standards (issued in June 2009)
Improvements to Financial Reporting Standards (issued in June 2009)
Consequential amendments were also made to various standards as a result of these new/revised standards.
Management anticipates that the adoption of the above SB-FRS, FRS, INT SB-FRS and INT FRS and
amendments to SB-FRS and FRS in future periods will not have a material impact on the financial statements
of the Group and Authority in the period of their initial adoption.
BASIS OF CONSOLIDATION – The consolidated financial statements incorporate the financial statements
of the Authority and entities controlled by the Authority (its subsidiaries). Control is achieved where the
Authority has the power to govern the financial and operating policies of an entity so as to obtain benefits
from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement
of comprehensive income from the effective date of acquisition or up to the effective date of disposal, as
appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies in line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
In the Authority’s financial statements, investments in subsidiaries are carried at cost less any impairment in
net recoverable value that has been recognised in income and expenditure.
FINANCIAL INSTRUMENTS – Financial assets and financial liabilities are recognised on the Group’s statement
of financial position when the Group becomes a party to the contractual provisions of the instrument.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and
of allocating interest income or expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts or payments (including all fees on points paid or received
that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial instrument, or where appropriate, a shorter period. Income is
recognised on an effective interest basis for debt instruments, other than those financial instruments at fair
value through income and expenditure.
Financial assets
Investments are recognised and de-recognised on a trade date where the purchase or sale of an investment
is under a contract whose terms require delivery of the investment within the timeframe established by the
market concerned, and are initially measured at fair value plus transaction costs, except for those financial
assets classified as fair value through income and expenditure which are initially measured at fair value.
Other financial assets are classified into the following specified categories: financial assets “at fair value
through income and expenditure”, “available-for-sale” financial assets and “loans and receivables”. The
classification depends on the nature and purpose of financial assets and is determined at the time of initial
recognition.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and fixed deposits that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
Funds with investment managers and other investments
Funds with investment managers and other investments are classified as financial assets at fair value through
income and expenditure.
An instrument is classified as at fair value through income and expenditure if it is held for trading or is
designated as such upon initial recognition. Financial instruments are designated as at fair value through
income and expenditure if the Authority manages such investments and makes purchase and sale decisions
based on their fair value.
Financial assets at fair value through income and expenditure are stated at fair value, with any resultant gain
or loss recognised in income and expenditure. The net gain or loss recognised in income and expenditure
incorporates any dividend or interest earned on the financial asset. Fair value is determined in the manner
described in Note 5.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
68 Civil Aviation Authority of Singapore2009/2010 Annual Report
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Available-for-sale financial assets
Certain shares and debt securities held by the Group are classified as being available for sale and are stated at
fair value. Fair value is determined in the manner described in Note 5. Gains and losses arising from changes
in fair value are recognised directly in the revaluation reserve with the exception of impairment losses,
interest calculated using the effective interest method and foreign exchange gains and losses on monetary
assets which are recognised directly in income and expenditure. Where the investment is disposed of or is
determined to be impaired, the cumulative gain or loss previously recognised in the revaluation reserve is
included in income and expenditure for the period. Dividends on available-for-sale equity instruments are
recognised in income and expenditure when the Group’s right to receive payments is established. The fair
value of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign
currency and translated at the spot rate at reporting date. The change in fair value attributable to translation
differences that result from a change in amortised cost of the asset is recognised in income and expenditure,
and other changes are recognised in other comprehensive income.
Loans and receivables
Trade debtors, loans, other debtors and amount due from CAG that have fixed or determinable payments
that are not quoted in an active market are classified as “loans and receivables”. Loans and receivables are
measured at amortised cost using the effective interest method less impairment. Interest is recognised by
applying the effective interest method, except for short-term receivables when the recognition of interest
would be immaterial.
Impairment of financial assets
Financial assets, other than those carried at fair value through income and expenditure, are assessed for indicators
of impairment at the end of each reporting period. Financial assets are impaired where there is objective evidence
that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated
future cash flows of the receivables or investment have been negatively affected.
For financial assets carried at amortised cost, the amount of the impairment is the difference between the
asset’s carrying amount and the present value of estimated future cash flows, discounted at the original
effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets
with the exception of trade receivables where the carrying amount is reduced through the use of an allowance
account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are credited against the allowance account. Changes in the
carrying amount of the allowance account are recognised in income and expenditure.
With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of the
impairment loss decreases and the decrease can be related objectively to an event occurring after the
impairment loss was recognised, the previously recognised impairment loss is reversed through income and
expenditure to the extent the carrying amount of the investment at the date the impairment is reversed does
not exceed what the amortised cost would have been had the impairment not been recognised.
In respect of available-for-sale equity instruments, any subsequent increase in fair value after an impairment
loss is recognised in other comprehensive income.
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset
to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Group recognises its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards
of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received.
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Group are classified according to the substance of
the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting
all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial liabilities
Trade, other payables and amount owing to MOF are initially measured at fair value, net of transaction costs,
and are subsequently measured at amortised cost, using the effective interest method, with interest expense
recognised on an effective yield basis, except for short-term payables where the recognition of interest
would be immaterial.
Financial guarantee contract liabilities are measured initially at their fair values and subsequently at the
higher of the amount of obligation under the contract recognised as a provision in accordance with SB-FRS
and FRS 37 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less
cumulative amortisation in accordance with SB-FRS and FRS 18 Revenue.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged,
cancelled or expired.
Forward exchange contracts
The Group’s activities are subject to financial risks of changes in foreign exchange rates.
The Group uses forward exchange contracts to hedge its risks associated with foreign currency fluctuations
relating to financial assets at fair value through income and expenditure.
Forward exchange contracts are initially measured at fair value at the date the contract is entered into and
are subsequently re-measured to fair value at the end of each reporting period.
Changes in the fair value of forward exchange contracts that do not qualify for hedge accounting are
recognised in income and expenditure as they arise.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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LEASES – Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
The Group as lessor
Amounts due from lessees under finance leases are recorded as receivables at the amount of the Group’s net
investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant
periodic rate of return on the Group’s net investment outstanding in respect of the leases.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease
unless another systematic basis is more representative of the time pattern in which use benefit derived from
the leased asset is diminished. Initial direct costs incurred in negotiating and arranging an operating lease
are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease
term.
The Group as lessee
Assets held under finance leases are recognised as assets of the Group at the lower of their fair value at the
inception of the lease or the present value of the minimum lease payments. The corresponding liability to
the lessor is included in the statement of financial position as a finance lease obligation. Lease payments
are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance charges are charged directly to income
and expenditure, unless they are directly attributable to qualifying assets, in which case they are capitalised
in accordance with the Group’s general policy on borrowing costs. Contingent rentals are recognised as
expenses in the periods in which they are incurred.
Rentals payable under operating leases are charged to income and expenditure on a straight-line basis over
the term of the relevant lease unless another systematic basis is more representative of the time pattern in
which economic benefits from the leased asset are consumed. Contingent rentals arising under operating
leases are recognised as an expenditure in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised
as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-
line basis, except where another systematic basis is more representative of the time pattern in which
economic benefits from the leased asset are consumed.
NON-CURRENT ASSETS HELD FOR SALE – Non-current assets and disposal groups are classified as held
for sale if their carrying amount will be recovered through a sale transaction rather than through continuing
use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal
group) is available for immediate sale in its present condition. Management must be committed to the sale,
which should be expected to qualify for recognition as a completed sale within one year from the date of
classification.
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of the assets’
previous carrying amount and fair value less costs to sell.
PREPAID LEASE – Prepaid lease comprises premium paid for leasehold land. The initial cost is capitalised
and amortised on a straight-line basis over its useful life of 30 years.
PROPERTY, PLANT AND EQUIPMENT AND CAPITAL WORK-IN-PROGRESS – Property, plant and equipment
are stated at cost, less accumulated depreciation and any accumulated impairment losses. Assets taken over
from the former Department of Civil Aviation were valued on the following bases at the date of transfer:
i. Land, runways, taxiways and others, and buildings were stated based on the Government Chief Valuer’s
valuation.
ii. Other assets were transferred at their net book values.
iii. Capital work-in-progress was valued at cost.
Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software
that is integral to the functionality of the related equipment is capitalised as part of the equipment.
The costs of the day-to-day servicing of property, plant and equipment are recognised in the income and
expenditure as incurred.
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.
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using the
straight-line method, on the following bases:
Leasehold land Over the lease period
Runways, taxiways and others 25 years
Buildings 15 to 30 years
Plant and equipment 7 to 15 years
Vehicles and vessels 5 to 10 years
Office/Other equipment, furniture and fixtures 1 to 3 years
Capital improvements 5 to 15 years
No depreciation is provided for capital work-in-progress. Capital work-in-progress are transferred to the
various categories to property, plant and equipment and depreciated upon the completion of the capital
project.
Fully depreciated assets still in use are retained in the financial statements.
The estimated useful lives and depreciation method are reviewed at each year end, with the effect of any
changes in estimate accounted for on a prospective basis.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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Assets held under finance leases are depreciated over their expected useful lives on the same basis as
owned assets or, if there is no certainty that the lessee will obtain ownership by the end of the lease term,
the asset shall be fully depreciated over the shorter of the lease term and its useful life.
The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the carrying amount of the asset and is recognised in
income and expenditure.
IMPAIRMENT OF ASSETS – At the end of each reporting period, the Group reviews the carrying amounts of
its assets to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. 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.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognised immediately in income and expenditure.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for
the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in
income and expenditure.
INTERESTS IN JOINT VENTURES – A joint venture is a contractual arrangement whereby the Group and other
parties undertake an economic activity that is subject to joint control that is when the strategic financial
and operating policy decisions relating to the activities require the unanimous consent of the parties sharing
control.
The results and assets and liabilities of joint ventures are incorporated in these financial statements using
the equity method of accounting, except when the investment is classified as held for sale, in which case it
is accounted for under SB-FRS and FRS 105 Non-current Assets Held for Sale and Discontinued Operations.
Under the equity method, investments in joint ventures are carried in the consolidated statement of financial
position at cost as adjusted for post-acquisition changes in the Group’s share of the net assets of the joint
venture, less any impairment in the value of individual investments. Losses of a joint venture in excess of the
Group’s interest in that joint venture (which includes any long-term interests that, in substance, form part of
the Group’s net investment in the joint venture) are not recognised, unless the Group has incurred legal or
constructive obligations or made payments on behalf of the joint venture.
Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets,
liabilities and contingent liabilities of the joint venture recognised at the date of acquisition is recognised
as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for
impairment as part of the investment. Any excess of the Group’s share of the net fair value of the identifiable
assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognised
immediately in income and expenditure.
Where the Group transacts with its jointly controlled entities, unrealised income and expenditure is eliminated
to the extent of the Group’s interest in the joint venture.
In the Authority’s financial statements, investments in joint ventures are carried at cost less impairment in net
recoverable value that has been recognised in income and expenditure.
PROVISIONS – Provisions are recognised when the Group has a present obligation (legal or constructive) as
a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably.
REVENUE RECOGNITION – Revenue is measured at the fair value of the consideration received or receivable.
Revenue is reduced for estimated customer returns, rebates and other similar allowances.
Income from services is recognised as and when services are rendered.
Income from consultancy projects is recognised on a progressive billing basis which is in accordance with
the contracted schedule of payment for projects undertaken.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that assets carrying amount.
Dividend income from investments is recognised when the shareholders’ rights to receive payment have
been established.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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GRANTS – Government grants and contributions from other organisations for the purchase of depreciable
assets are taken to the Deferred Capital Grants Account.
The deferred capital grants are recognised in income and expenditure over the periods necessary to match
the depreciation of the assets purchased with the related grants. Upon the disposal of fixed assets, the
balance of the related deferred capital grants is recognised in income and expenditure to match the carrying
amount of the fixed assets written off.
RETIREMENT BENEFIT COSTS – Payments to defined contribution retirement benefit plans are charged
as expenditure as they fall due. Payments made to state-managed retirement benefit schemes, such as
the Central Provident Fund, are dealt with as payments to defined contribution plans where the Group’s
obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan.
Provision is made for the payment of retirement benefits to those pensionable employees who did not opt
for transfer to the Central Provident Fund scheme. For such defined benefit retirement plan, the cost of
providing benefits is determined using the Projected Unit Credit Method. Actuarial gains and losses will
be recognised immediately. Past service cost is recognised immediately to the extent that the benefits are
already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits
become vested.
The retirement benefit obligation recognised in the statement of financial position represents the present value
of the defined benefit obligation as adjusted for unrecognised actuarial gains and losses and unrecognised
past service cost. Any asset resulting from this calculation is limited to unrecognised actuarial losses and past
service cost, plus the present value of available refunds and reductions in future contributions to the plan.
EMPLOYEE LEAVE ENTITLEMENT – Employee entitlements to annual leave are recognised when they accrue
to employees. A provision is made for the estimated liability for annual leave as a result of services rendered
by employees up to the end of the reporting period.
INCOME TAX – The Authority is exempted from income tax under Section 13(1)(e) of the Income Tax Act
(Cap. 134, 2004 Revised Edition).
In respect of the subsidiary companies, income tax expense represents the sum of the tax currently payable
and deferred tax.
The tax currently payable is based on taxable income for the year. Taxable income differs from profit as reported
in the statement of comprehensive income because it excludes items of income or expense that are taxable
or deductible in other years and it further excludes items that are not taxable or tax deductible. The Group’s
liability for current tax is calculated using tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period in the countries where the Authority and subsidiaries operate.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit, and is
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for
all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences can be utilised.
Deferred tax liabilities are recognised on taxable temporary differences arising on investments in subsidiaries
and associates, and interests in joint ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of
the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset realised based on the tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period in the countries where the Authority and subsidiaries operate.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax are recognised as an expenditure or income in income and expenditure, except
when they relate to items credited or debited directly to equity, in which case the tax is also recognised
directly in equity.
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION – The individual financial statements of each
Group entity are measured and presented in the currency of the primary economic environment in which the
entity operates (its functional currency). The consolidated financial statements of the Group, the statement
of financial position, statement of comprehensive income and statement of changes in equity of the Authority
are presented in Singapore dollars, which is the functional currency of the Authority and the presentation
currency for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the
entity’s functional currency are recorded at the rate of exchange prevailing on the date of the transaction.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at
the rates prevailing at the end of the reporting period. Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not
retranslated.
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Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items
are included in income and expenditure for the period. Exchange differences arising on the retranslation
of non-monetary items carried at fair value are included in income and expenditure for the period except
for differences arising on the retranslation of non-monetary items in respect of which gains and losses are
recognised directly in other comprehensive income. For such non-monetary items, any exchange component
of that gain or loss is also recognised directly in other comprehensive income.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s
foreign operations (including comparatives) are expressed in Singapore dollars using exchange rates
prevailing at the end of the reporting period. Income and expenditure items (including comparatives) are
translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during
that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences
arising, if any, are classified as equity and transferred to the Group’s currency translation reserve. Such
translation differences are recognised in income and expenditure in the period in which the foreign operation
is disposed of.
4. CRITICAL ACCOUNTINg JUDgEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Group’s accounting policies, which are described in Note 3, the management
is required to make judgements, estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Group’s accounting policies
The management did not make any material judgments that have significant effect on the amounts
recognised in the financial statements except for those affecting accounting estimations as disclosed below.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year relate to the management’s expectations regarding the
operations, are discussed below.
Useful lives of property, plant and equipment
As described in Note 3, the Group reviews the estimated useful lives of property, plant and equipment at the
end of each reporting period. During the financial year, there is a change in the useful lives of assets with
effect 1 July 2009 after considering the factors which includes the reassessment of the reasonableness of
the future economic benefits embodied in the fixed assets. The changes in the useful lives are as follows:
– Buildings increased from 20 years to 30 years;
– Plant & Equipments increased from 10 years to 15 years; and
– Capital Improvements increased from 10 years to 15 years.
The financial effect of this reassessment, assuming the assets are held until the end of their estimated useful
lives, is to decrease the consolidated depreciation expense in the financial year and consequently, the net
surplus for the year for the next 3 years, by the following amounts:
S$’000
2009/10 4,482
2010/11 5,976
2011/12 5,976
5. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CApITAL RISK MANAgEMENT
a. Categories of financial instruments
The following table sets out the financial instruments at the end of the reporting period:
group Authority
Total Continuing
Disposalgroup
(Note 23) Total Total Continuing
Disposal group
(Note 23) Total2009/10
S$’0002008/09
S$’0002008/09
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’0002008/09
S$’0002008/09
S$’000
Financial Assets
Loans and
receivables
(including
cash and cash
equivalents) 4,270,843 1,145,587 714,190 1,859,777 4,270,843 1,145,681 469,626 1,615,307
Available-for-sale
financial assets 3,750 3,750 25,926 29,676 3,750 3,750 – 3,750
Held for trading
financial assets 70,012 43,089 – 43,089 70,012 43,089 – 43,089
4,344,605 1,192,426 740,116 1,932,542 4,344,605 1,192,520 469,626 1,662,146
Financial Liabilities
Financial liabilities at
amortised cost (3,920,053) (255,024) (35,592) (290,616) (3,920,053) (255,024) (24,966) (279,990)
(3,920,053) (255,024) (35,592) (290,616) (3,920,053) (255,024) (24,966) (279,990)
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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5. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CApITAL RISK MANAgEMENT (CONT’D)
b. Financial risk management policies and objectives
Risk management is integral to the business of the Group. The Group 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 Group’s risk management process to ensure that an appropriate
balance between risk and control is achieved.
i. Interest rate risk management
The Group’s and the Authority’s exposure to market risk for changes in interest rates relates primarily
to investment portfolios in fixed deposits and bonds with financial institutions. The Group may use
derivative financial instruments to hedge investment portfolios. The investment portfolios comprise
securities with resale markets to ensure portfolio liquidity. However, the Group and the Authority do
not have a significant exposure to interest rate risk as there are minimal interest bearing financial
assets and liabilities. With the current interest rate level, any variation in the interest rates will not
have a significant impact on the results of the Group and the Authority. Accordingly, no sensitivity
analysis is performed.
ii. Foreign exchange risk management
The Authority and its subsidiaries maintain their books and accounts in their respective functional
currencies. As a result, the Group is subject to transaction and translation exposures resulting from
currency exchange rate fluctuations. The Group also has exposure to foreign exchange risk as a result
of transactions denominated in foreign currencies, arising from normal business and investment
activities. Where exposures are certain, the Group may hedge these risks as they arise.
At the reporting date, the carrying amounts of significant monetary assets and monetary liabilities
denominated in currencies other than the respective Group entities’ functional currency are as follows:
Liabilities Assets
Continuing
Disposal group
(Note 23) Total Continuing
Disposalgroup
(Note 23) Total2009/10
S$’0002008/09
S$’0002008/09
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’0002008/09
S$’0002008/09
S$’000
group
United States Dollar (11) (215) – (215) 20,054 16,416 – 16,416
British Pounds (2) – – – 5,385 2,584 – 2,584
Euro – (16) – (16) 3,107 3,107 1,400 4,507
Japanese Yen – – – – 4,806 4,914 – 4,914
Australian Dollar – – – – 81,892 9,893 – 9,893
Hong Kong Dollar – – (391) (391) – – 3,349 3,349
(13) (231) (391) (622) 115,244 36,914 4,749 41,663
Authority
United States Dollar (11) (215) – (215) 20,054 16,416 – 16,416
British Pounds (2) – – – 5,385 2,584 – 2,584
Euro – (16) – (16) 3,107 3,107 – 3,107
Japanese Yen – – – – 4,806 4,914 – 4,914
Australian Dollar – – – – 81,892 9,893 – 9,893
(13) (231) – (231) 115,244 36,914 – 36,914
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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Foreign currency sensitivity
The following table details the sensitivity to a 5% increase or decrease in the relevant foreign currencies
against the functional currency of each group entity. 5% is the sensitivity rate used when reporting foreign
currency risk internally to key management personnel and represents management’s assessment of the
possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign
currency denominated monetary items and adjusts their translation at the period end for a 5% change in
foreign currency rates.
If the relevant foreign currency were to strengthen by 5% against the functional currency of the respective
entities in the Group, net surplus and other equity will increase/(decrease) by:
2009/10 2008/09Disposal group
(Note 23)S$’000
Total Continuing TotalS$’000 S$’000 S$’000
Effect on net surplus
group
United States Dollar 1,002 810 – 810
British Pounds 269 129 – 129
Euro 155 155 – 155
Japanese Yen 240 246 – 246
Australian Dollar 4,095 495 – 495
5,761 1,835 – 1,835
Authority
United States Dollar 1,002 810 – 810
British Pounds 269 129 – 129
Euro 155 155 – 155
Japanese Yen 240 246 – 246
Australian Dollar 4,095 495 – 495
5,761 1,835 – 1,835
Effect on other equity
group
Hong Kong Dollar – – 167 167
Euro – – 50 50
– – 217 217
If the relevant foreign currency were to weaken by 5% against the functional currency of the respective
entities in the Group, net surplus and other equity will increase/(decrease) by:
2008/092009/10
Total ContinuingDisposal group
(Note 23) Total
S$’000 S$’000 S$’000 S$’000
Effect on net surplus
group
United States Dollar (1,002) (810) – (810)
British Pounds (269) (129) – (129)
Euro (155) (155) – (155)
Japanese Yen (240) (246) – (246)
Australian Dollar (4,095) (495) – (495)
(5,761) (1,835) – (1,835)
Authority
United States Dollar (1,002) (810) – (810)
British Pounds (269) (129) – (129)
Euro (155) (155) – (155)
Japanese Yen (240) (246) – (246)
Australian Dollar (4,095) (495) – (495)
(5,761) (1,835) – (1,835)
Effect on other equity
Group
Hong Kong Dollar – – (167) (167)
Euro – – (50) (50)
– – (217) (217)
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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iii. Equity price risk management
The Group is exposed to equity risks arising from equity investments classified as held-for-trading
and available-for-sale. These equity investments have been included under assets held for sale as at 31
March 2010. Further details of these equity investments can be found in Notes 17 and 23 respectively.
Available-for-sale equity investments are held for strategic rather than trading purposes. The Group
does not actively trade available-for-sale investments.
Equity price sensitivity
The sensitivity analyses below have been determined based on the exposure to equity price risks at
the reporting date.
In respect of available-for-sale equity investments, if the equity prices had been 20% higher while all
other variables were held constant:
• theGroup’snetsurplus for theyearended31March2010wouldhavebeenunaffectedasthe
equity investments are classified as available-for-sale and no investments were disposed of or
impaired; and
• theGroup’sassetrevaluationreserveswouldincreasebyS$Nil(2008/09:S$5,185,200).
In respect of held-for-trading equity instruments, if equity prices had been 20% higher:
• theGroup’sandAuthority’snetsurplusfortheyearended31March2010wouldbehigherby
S$9,934,000 (2008/09 : higher by S$6,949,600).
Conversely, had the equity prices been 20% lower, the respective effects on the Group’s assets
revaluation reserves and the net surplus would be in the opposite direction.
iv. Liquidity risk management
The Group monitors and maintains a level of cash and cash equivalents deemed adequate by
management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows.
Liquidity and interest risk analyses
Non-derivative financial liabilities
The following tables detail the remaining contractual maturity for non-derivative financial liabilities.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on
the earliest date on which the Group and Authority can be required to pay. The table includes both
interest and principal cash flows. The adjustment column represents the possible future cash flows
attributable to the instrument included in the maturity analysis which is not included in the carrying
amount of the financial liability on the statement of financial position.
Weightedaverage
effectiveinterest rate
Ondemand
or within1 year
Within 2 to
5 yearsAfter
5 years Adjustment Total% p.a. S$’000 S$’000 S$’000 S$’000 S$’000
group
2009/10
Total
Non-interest bearing NA 3,897,823 22,230 – – 3,920,053
3,897,823 22,230 – – 3,920,053
2008/09
Continuing Operations
Non-interest bearing NA 234,697 19,625 – – 254,322
Finance lease liability (fixed rate) 3.44% 731 – – (29) 702
235,428 19,625 – (29) 255,024
Disposal Group (Note 23)
Non-interest bearing NA 35,592 – – – 35,592
35,592 – – – 35,592
Total
Non-interest bearing NA 270,289 19,625 – – 289,914
Finance lease liability (fixed rate) 3.44% 731 – – (29) 702
271,020 19,625 – (29) 290,616
Authority
2009/10
Total
Non-interest bearing NA 3,897,823 22,230 – – 3,920,053
3,897,823 22,230 – – 3,920,053
2008/09
Continuing Operations
Non-interest bearing NA 234,697 19,625 – – 254,322
Finance lease liability (fixed rate) 3.44% 731 – – (29) 702
235,428 19,625 – (29) 255,024
Disposal Group (Note 23)
Non-interest bearing NA 24,966 – – – 24,966
24,966 – – – 24,966
Total
Non-interest bearing NA 259,663 19,625 – – 279,288
Finance lease liability (fixed rate) 3.44% 731 – – (29) 702
260,394 19,625 – (29) 279,990
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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Non-derivative financial assets
The following table details the expected maturity for non-derivative financial assets. The tables
below have been drawn up based on the undiscounted contractual maturities of the financial assets
including interest that will be earned on those assets except where the Group and the Authority
anticipate that the cash flow will occur in a different period. The adjustment column represents the
possible future cash flows attributable to the instrument included in the maturity analysis which are
not included in the carrying amount of the financial asset on the statement of financial position.
Weightedaverage
effectiveinterest rate
Ondemand
or within1 year
Within2 to
5 yearsAfter
5 years Adjustment Total% p.a. S$’000 S$’000 S$’000 S$’000 S$’000
group
2009/10
Total
Non-interest bearing NA 3,798,722 805 – – 3,799,527
Fixed interest rate
– Fixed deposits 0.52% 546,931 – – (1,853) 545,078
4,345,653 805 – (1,853) 4,344,605
2008/09
Continuing Operations
Non-interest bearing NA 90,103 925 – – 91,028
Fixed interest rate
– Loan to jointly controlled entities 4.89% 10,587 – – (489) 10,098
– Fixed deposits 0.40% 1,091,300 – – – 1,091,300
1,191,990 925 – (489) 1,192,426
Disposal Group (Note 23)
Non-interest bearing NA 160,581 250 – – 160,831
Fixed interest rate
– Loan to jointly controlled entities 4.89% 7,058 – – (326) 6,732
– Fixed deposits 0.45% 572,553 – – – 572,553
740,192 250 – (326) 740,116
Total
Non-interest bearing NA 250,684 1,175 – – 251,859
Fixed interest rate
– Loan to jointly controlled entities 4.89% 17,645 – – (815) 16,830
– Fixed deposits 0.41% 1,663,853 – – – 1,663,853
1,932,182 1,175 – (815) 1,932,542
Weightedaverage
effectiveinterest rate
Ondemand
or within1 year
Within2 to
5 yearsAfter
5 years Adjustment Total
% p.a. S$’000 S$’000 S$’000 S$’000 S$’000
Authority
2009/10
Total
Non-interest bearing NA 3,798,722 805 – – 3,799,527
Fixed interest rate
– Fixed deposits 0.52% 546,931 – – (1,853) 545,078
4,345,653 805 – (1,853) 4,344,605
2008/09
Continuing Operations
Non-interest bearing NA 90,197 925 – – 91,122
Fixed interest rate
– Loan to jointly controlled
entities 4.89% 10,587 – – (489) 10,098
– Fixed deposits 0.40% 1,091,300 – – – 1,091,300
1,192,084 925 – (489) 1,192,520
Disposal Group (Note 23)
Non-interest bearing NA 51,644 250 – – 51,894
Fixed interest rate
– Loan to jointly controlled
entities 4.89% 7,058 – – (326) 6,732
– Fixed deposits 0.45% 411,000 – – – 411,000
469,702 250 – (326) 469,626
Total
Non-interest bearing NA 141,841 1,175 – – 143,016
Fixed interest rate
– Loan to jointly controlled
entities 4.89% 17,645 – – (815) 16,830
– Fixed deposits 0.41% 1,502,300 – – – 1,502,300
1,661,786 1,175 – (815) 1,662,146
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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Derivative financial instruments
The following table details the liquidity analysis for derivative financial instruments. The table has
been drawn up based on the undiscounted net cash inflows/(outflows) on the derivative instrument
that settle on a net basis and the undiscounted gross inflows/(outflows) on those derivatives that
require gross settlement.
Weighted average
effective interest rate
Ondemand or
within 1 year
Within 2 to
5 yearsAfter
5 years Adjustment Total
group and Authority % p.a. S$’000 S$’000 S$’000 S$’000 S$’000
2009/10
Forward exchange contracts (Note 14) NA 9,542 9,556 – – 19,098
2008/09
Forward exchange contracts (Note 14) NA 3,462 4,413 – – 7,875
v. Credit risk management
The Group has a credit policy in place which establishes credit limits for customers and monitors their
balances on an ongoing basis. Credit evaluations are performed on all customers requiring credit over
a certain amount. Cash and fixed deposits are placed with banks and financial institutions which are
regulated. Investments and transactions involving derivative financial instruments are allowed only
with counterparties who have sound credit ratings.
At the end of the reporting period, there is no significant concentration of credit risk. Investment
managers are bound by investment mandates, which prohibit investments with high credit risks. The
maximum exposure to credit risk is represented by the carrying amount of each financial asset in the
statement of financial position.
Further details of credit risk on trade and other receivables are disclosed in Notes 18 and 19
respectively.
vi. Fair value of financial assets and financial liabilities
The carrying amounts of cash and cash equivalents, trade and other current receivables and payables
approximate their respective fair values due to the relatively short-term maturity of these financial
instruments. The fair value of other classes of financial assets and liabilities are disclosed in the
respective notes to financial statements.
The fair values of financial assets and financial liabilities are determined as follows:
i. the fair value of financial assets and financial liabilities with standard terms and conditions and
traded on active liquid markets are determined with reference to quoted market prices;
ii. the fair value of other financial assets and financial liabilities (excluding derivative instruments)
are determined in accordance with generally accepted pricing models based on discounted cash
flow analysis; and
iii. the fair value of derivative instruments are calculated using quoted prices. Where such prices are
not available, discounted cash flow analysis is used, based on the applicable yield curve of the
duration of the instruments for non-optional derivatives, and option pricing models for optional
derivatives.
Certain available-for-sale financial assets are stated at cost less impairment losses as these financial
assets do not have quoted market prices in an active market or other methods of reasonably
estimating their fair values.
The derivative financial instruments are initially recognised at fair value (Level 1 fair value as defined
below) at the date a derivative contract is entered into and are subsequently remeasured to their fair
value at the end of the reporting period. The fair value of funds with investment managers (Level 1
fair value) is determined based on the quoted bid price at the end of the reporting period. There are
no significant transfers between Level 1 and Level 2 during the year.
With the adoption of the amendments to FRS 107 Financial Instruments: Disclosures, the following
describes the hierarchy of inputs used to measure the fair value and the primary valuation
methodologies used by the Group and Authority for investments measured at fair value on a recurring
basis. The three levels of inputs are as follows:
i. Level 1
Fair values are measured based on quoted prices (unadjusted) from active markets for identical
financial instruments. Prices are generally obtained from relevant exchange or dealer markets.
The Group does not adjust the quoted prices for such investments.
ii. Level 2
Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices
for similar assets or liabilities and quoted prices in markets that are not active. Inputs are obtained
from various sources including market participants, dealers, and brokers.
iii. Level 3
Unobservable inputs that are supported by little or no market activity and that are significant
to the fair value of the assets or liabilities. The fair values of such funds that do not have readily
determinable fair values may be determined by the alternative investment managers.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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c. Capital risk management policies and objectives
The Group reviews its capital structure at least annually to ensure that the Group will be able to continue
as a going concern. The capital structure of the Group comprises capital and reserves as disclosed
in Notes 7 and 8 respectively. The Group’s and Authority’s overall strategy remains unchanged from
2008/09.
6. RELATED pARTY TRANSACTIONS
Related parties are entities with common direct or indirect shareholders and/or directors. Parties are
considered to be related if one party has the ability to control the other party or exercise significant influence
over the other party in making financial and operating decisions. All Government ministries, statutory boards
and the Authority’s subsidiary companies and jointly controlled entities are deemed related parties to the
Authority.
Key management personnel compensation
Key management personnel are those persons having the authority and responsibility for planning, directing
and controlling the activities of the Group. Key management personnel compensation are as follows:
group Authority
2009/10S$’000
2008/09S$’000
2009/10S$’000
2008/09S$’000
Continuing operations
Salaries and other short-term employee benefits 861 1,598 861 1,598
861 1,598 861 1,598
Discontinued operations (Note 38)
Salaries and other short-term employee benefits 1,081 1,651 1,081 1,651
Post-employment benefits 16 16 16 16
1,097 1,667 1,097 1,667
Other related party transactions
During the financial year, other than those disclosed elsewhere in the financial statements, there were the
following significant related party transactions based on terms agreed between the parties:
group and Authority
2009/10 2008/09
Balances Transactions Balances TransactionsS$’000 S$’000 S$’000 S$’000
Amounts due from:
Subsidiaries
Changi Airports International Pte Ltd – 137 54 971
Changi Airports Consultants Pte Ltd – 151 14 76
Joint Venture
Singapore Airshow & Events Pte Ltd – 79 12 147
Related parties:
Airport Police – 117 54 527
Attorney-General's Chambers 6 – – –
Maritime and Port Authority of Singapore 86 317 – –
Ministry of Defence 311 4,959 4 7,955
Ministry of Foreign Affairs 106 1,178 240 1,083
Ministry of Trade and Industry 5,432 94 – 559
Ministry of Transport 101 131 – –
National Environment Agency – 21 1 1,287
National Security Coordination Centre 257 – – –
Amounts due to:
Subsidiaries:
Changi Airports International – 125 – 645
Changi Airport Planners and Engineers – 221 – 50
Related parties:
Commissioner of Police – 1,598 770 11,556
National Environment Agency – 6,270 1 7,601
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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7. CApITAL ACCOUNT
This represents the value of assets and liabilities transferred from the former Department of Civil Aviation
when the Authority was established, less any subsequent return of assets to the Government.
In 2008/09, under the Ministry of Finance’s Capital Management Framework for Statutory Boards (Finance
Circular Minute No. M26/2008), the Authority issued a share for S$1,000 equity contribution received from
the Minister for Finance, the body incorporated by the Minister for Finance (Incorporation) Act. The share
does not carry any voting rights nor has a par value. The share carries a right to dividend.
8. RESERVES
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
Currency translation reserve – (27,855) – –
Revaluation reserve – (28,987) – –
Restricted reserve – 102 – –
Accumulated (loss)/surplus (1,258) 2,854,083 – 2,850,797
(1,258) 2,797,343 – 2,850,797
The currency translation reserve of the Group comprised foreign exchange gains or losses arising from the
translation of the financial statements of the subsidiary companies and the Group’s share of the foreign
exchange gains or losses of the jointly controlled entities.
The revaluation reserve of the Group comprised the net cumulative difference in the fair value of available-
for-sale assets held until the investment was derecognised or impaired.
Movements in the respective reserves are disclosed in the statements of changes in equity.
9. pROpERTY, pLANT AND EQUIpMENT
Leasehold land
S$’000
Runways,taxiways
and othersS$’000
BuildingsS$’000
plant andequipment
S$’000
Vehiclesand
vessels $’000
Office/Otherequipment,
furniture,and fixtures
S$’000
Capitalimprove-
mentsS$’000
TotalS$’000
group
Cost:
At 1 April 2008 2,024,013 1,125,774 1,822,216 1,633,478 39,701 117,259 438,380 7,200,821
Additions – – – – 104 743 – 847
Transferred from
capital work-in-
progress (Note 10) – 13,990 197,898 148,101 4,986 21,478 95,021 481,474
Disposals – – (2,020) (26,784) (4,548) (4,760) (433) (38,545)
Translation
difference – – – – – 154 – 154
Classified as held
for sale (Note 23) – (1,138,179) (1,897,299) (1,506,250) (37,789) (117,523) (506,807)(5,203,847)
At 31 March 2009 2,024,013 1,585 120,795 248,545 2,454 17,351 26,161 2,440,904
Additions – – – – – 892 – 892
Transferred from
capital work-in-
progress (Note 10) 1,425 5,144 50,389 68,874 470 7,371 30,147 163,820
Disposals (2) – (138) (12,921) (5) (24,679) (294) (38,039)
Transfers – – – 1,341 (1,341) – – –
Adjustments from
classified as held
for sale in prior
year (Note A) – – – – – 17,383 – 17,383
Transferred to CAG – (6,729) (46,956) (53,819) (70) (381) (23,211) (131,166)
At 31 March 2010 2,025,436 – 124,090 252,020 1,508 17,937 32,803 2,453,794
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Leasehold land
S$’000
Runways,taxiways
and othersS$’000
BuildingsS$’000
plant andequipment
S$’000
Vehiclesand
vessels $’000
Office/Otherequipment,
furniture,and fixtures
S$’000
Capitalimprove-
mentsS$’000
TotalS$’000
Authority
Cost:
At 1 April 2008 2,024,013 1,125,774 1,822,216 1,633,478 39,701 115,765 438,380 7,199,327
Additions – – – – – 499 – 499
Transferred from
capital work-in-
progress (Note 10) – 13,990 197,898 148,101 4,986 21,478 95,021 481,474
Disposals – – (2,020) (26,784) (4,548) (4,677) (433) (38,462)
Classified as held
for sale (Note 23) – (1,138,179) (1,897,299) (1,506,250) (37,685) (115,714) (506,807) (5,201,934)
At 31 March 2009 2,024,013 1,585 120,795 248,545 2,454 17,351 26,161 2,440,904
Additions – – – – – 892 – 892
Transferred from
capital work-in-
progress (Note 10) 1,425 5,144 50,389 68,874 470 7,371 30,147 163,820
Disposals (2) – (138) (12,921) (5) (24,679) (294) (38,039)
Transfers – – – 1,341 (1,341) – – –
Adjustments from
classified as held
for sale in prior
year (Note A) – – – – – 17,383 – 17,383
Transferred to CAG – (6,729) (46,956) (53,819) (70) (381) (23,211) (131,166)
At 31 March 2010 2,025,436 – 124,090 252,020 1,508 17,937 32,803 2,453,794
9. pROpERTY, pLANT AND EQUIpMENT (CONT’D)
Leasehold land
S$’000
Runways,taxiways
and othersS$’000
BuildingsS$’000
plant andequipment
S$’000
Vehiclesand
vessels $’000
Office/Otherequipment,
furniture,and fixtures
S$’000
Capitalimprove-
mentsS$’000
TotalS$’000
group
Accumulated
depreciation:
At 1 April 2009 432,617 702,451 998,288 914,542 26,015 108,952 230,711 3,413,576
Depreciation for
the year (Note B) 21,040 45,697 85,061 123,785 2,676 9,653 44,386 332,298
Disposals – – (1,093) (26,443) (4,536) (4,744) (289) (37,105)
Translation
difference – – – – – 89 – 89
Classified as held
for sale (Note 23) – (747,289) (1,004,872) (796,061) (22,935) (97,498) (250,708) (2,919,363)
At 31 March 2009 453,657 859 77,384 215,823 1,220 16,452 24,100 789,495
Depreciation for
the year (Note B) 21,071 659 4,363 18,286 197 5,230 2,780 52,586
Disposals (1) – (128) (12,884) (5) (24,676) (294) (37,988)
Transfers – – – 85 (85) – – –
Adjustments from
classified as held
for sale in prior
year (Note A) – – – – – 17,383 – 17,383
Transferred to CAG – (1,518) (1,421) (548) (199) – (1,097) (4,783)
At 31 March 2010 474,727 – 80,198 220,762 1,128 14,389 25,489 816,693
Carrying amount:
At 31 March 2009 1,570,356 726 43,411 32,722 1,234 899 2,061 1,651,409
At 31 March 2010 1,550,709 – 43,892 31,258 380 3,548 7,314 1,637,101
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9. pROpERTY, pLANT AND EQUIpMENT (CONT’D)
Leasehold land
S$’000
Runways,taxiways
and othersS$’000
BuildingsS$’000
plant andequipment
S$’000
Vehiclesand
vessels $’000
Office/Otherequipment,
furniture,and fixtures
S$’000
Capitalimprove-
mentsS$’000
TotalS$’000
Authority
Accumulated
depreciation:
At 1 April 2008 432,617 702,451 998,289 914,542 26,015 108,209 230,713 3,412,836
Depreciation for
the year (Note B) 21,040 45,697 85,061 123,785 2,677 9,247 44,386 331,893
Disposals – – (1,094) (26,443) (4,539) (4,677) (291) (37,044)
Classified as held
for sale (Note 23) – (747,289) (1,004,872) (796,061) (22,933) (96,327) (250,708)(2,918,190)
At 31 March 2009 453,657 859 77,384 215,823 1,220 16,452 24,100 789,495
Depreciation for
the year (Note B) 21,071 659 4,363 18,286 197 5,230 2,780 52,586
Disposals (1) – (128) (12,884) (5) (24,676) (294) (37,988)
Transfers between
asset category – – – 85 (85) – – –
Adjustments from
classified as held
for sale in prior
year (Note A) – – – – – 17,383 – 17,383
Transferred to CAG – (1,518) (1,421) (548) (199) – (1,097) (4,783)
At 31 March 2010 474,727 – 80,198 220,762 1,128 14,389 25,489 816,693
Carrying amount:
At 31 March 2009 1,570,356 726 43,411 32,722 1,234 899 2,061 1,651,409
At 31 March 2010 1,550,709 – 43,892 31,258 380 3,548 7,314 1,637,101
Note A
In 2008/09, certain office/other equipment, furniture and fixtures were reclassified as held for sale.
Adjustments on assets held for sale of S$17,383,000 have been restated, as these equipment were not
transferred to CAG in the current year.
Note B
Total depreciation and impairment for the year comprised:
group Authority
2009/10S$’000
2008/09S$’000
2009/10S$’000
2008/09S$’000
a. Depreciation relating to continuing operations 52,586 38,338 52,586 38,338
b. Impairment relating to discontinued
operations for assets classified as held for sale
(Note 38) 59,363 – 59,363 –
c. Depreciation relating to discontinued
operations prior to the transfer to assets
classified as held for sale (Note 38) – 293,960 – 293,555
111,949 332,298 111,949 331,893
In 2003/04, the Authority entered into a lease-out-lease-back arrangement for its airport management
system with a total cost of S$153,000,000. The carrying amount is S$15,438,000 as at 31 March 2010
(2008/09: S$23,219,000). Since the title to these assets is retained by the Authority and no restrictions are
placed on its ability to utilise them, there is no adjustment made to the property, plant and equipment. The
net cash amount, less related transaction expenses, of S$11,900,000 in respect of this transaction has been
recorded as deferred income and is being amortised over the lease term of 18.25 years from October 2003.
Under the lease arrangement, the Authority is the primary obligor of the lease payments.
Following the corporatisation of Changi Airport, the Authority will be entering into a sub-sub-lease
arrangement with CAG for the airport management system.
10. CApITAL WORK-IN-pROgRESS
group and Authority2009/10
S$’0002008/09
S$’000
At beginning of the year 36,823 479,705
Expenditure incurred during the year 403,262 312,411
Transferred to property, plant and equipment (Note 9) (163,820) (481,474)
Transferred to CAG (157,168) –
Classified as held for sale (Note 23) – (273,819)
At end of the year 119,097 36,823
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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11. INVESTMENT IN SUBSIDIARY COMpANIES
Authority2009/10
S$’0002008/09
S$’000
Unquoted equity shares, at cost 306,539 –
Provision for impairment losses (49,375) –
Transferred to CAG (257,164) –
Classified as held for sale (Note 23) – 306,539
– 306,539
Authority
2009/10S$’000
2008/09S$’000
Movement in impairment losses:
Balance at beginning of the year – 72,927
Write off of provision for impairment losses due to disposal of subsidiary – (72,927)
Impairment loss recognised in the year (Note 35) 49,375 –
Transferred to CAG (49,375) –
Balance at the end of the year – –
On 1 July 2009, the Authority transferred its entire interest in Changi Airports International Pte Ltd (“CAI”),
represented by 306,539,000 ordinary shares to Changi Airport Group (Singapore) Pte Ltd (“CAG”) at its
carrying amount of net assets in CAI. The impairment loss recognised represents the difference between the
carrying amounts of the assets and liabilities recorded in the books of CAI and the cost of unquoted equity
shares.
Details of the subsidiary companies were as follows:
Name of subsidiary companies
Country ofincorporation and operations
proportion of ownershipinterest and voting power held principal activities
2009/10 2008/09% %
Held by the Authority
Changi Airports International
Pte Ltd@
Singapore – 100 Investment holding and provision
of consultancy services in the
field of civil aviation
Name of subsidiary companies
Country ofincorporation and operations
proportion of ownershipinterest and voting power held principal activities
2009/10 2008/09% %
Held by Subsidiary Companies
Singapore Changi Airport
Enterprise Pte Ltd@
Singapore – 100 Investment holding and provision
of consultancy service in the field
of civil aviation
SCAE Alterra Pte Ltd Singapore – 100 Investment in overseas airports
Changi Airports China Ltd Singapore – 100 Investment holding and
consultancy services
Changi Airport Consultants
Pte Ltd
Singapore – 100 Provision of consultancy services
in the field of civil aviation
Changi Airport Planners
and Engineers Pte Ltd
(previously known as Changi
Airport Engineers Pte Ltd)
Singapore – 100 Provision of engineering services
Changi Airport India
Pte Ltd
Singapore – 100 Investment in airports and civil
aviation related projects
Changi Airports MENA
Pte Ltd
Singapore – 100 Investment holding and provision
of consultancy service in the field
of civil aviation
Changi Airports Russia
Pte Ltd
Singapore – 100 Investment in airports and civil
aviation related projects and
provision of airport related
consultancy services
Changi Airports St Petersburg
Pte Ltd
Singapore – 100 Investment in airports and civil
aviation related projects and
provision of airport related
consultancy services
Changi Airport Saudi Ltd Saudi Arabia – 100 Investment in airports and civil
aviation related projects and
provision of airport related
consultancy services
@ On 1 July 2009, the Authority transferred its entire interest in Changi Airports International Pte Ltd (“CAI”), represented by 306,539,000 ordinary shares to CAG at the carrying amount of net assets in CAI.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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12. INTEREST IN JOINTLY CONTROLLED ENTITIES
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
Investment in jointly controlled entities 44,761 33,985 44,761 33,985
Implied interest on loan to jointly
controlled entity upon inception 1,129 678 1,129 678
Share of losses of jointly controlled entities (1,258) (6,393) – –
Impairment losses (10,513) (10,513) (10,513) (10,513)
34,119 17,757 35,377 24,150
Loan to jointly controlled entity – 10,098 – 10,098
Interest income receivable – 603 – 603
Discount implicit in loan to jointly
controlled entity (236) (189) (236) (189)
33,883 28,269 35,141 34,662
Classified as held for sale (Note 23) – 12,325 – 10,928
33,883 40,594 35,141 45,590
Details of the jointly controlled entities are as follows:
Name of jointlycontrolled entities
place ofincorporation and business
Effective equityHeld by the group principal activities
2009/10 2008/09% %
Held by the Authority
Singapore Airshow & Events
Pte Ltd
Singapore 30 50 Organising and management of
conferences, exhibition and other
related activities
Airport Logistics Park
of Singapore*
* Unincorporated entity
Singapore 20 20 Developing, marketing, managing
and provision of facilities to the
free trade zone logistics park
Held by Subsidiary Companies
Alterra Partners Cayman
Islands
– 50 Development, financing and
construction of airports
China-Singapore Airport
Management Academy
People’s
Republic
of China
– 50 Provision of airport management
training services
SVO-Changi Stock Company Russia – 49 Dormant
Shenzhen Xin Peng Airport
Management Co Ltd
People’s
Republic
of China
– 49 Provision of airport consultancy
services
Bearstorm Limited Cyprus – 25 Investment holding company
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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The Group’s share of the jointly controlled entities’ results, assets and liabilities under the continuing
operations for the period from 1 April 2009 to 31 March 2010 are as follows:
group
Continuing Operations2009/10
S$’0002008/09
S$’000
Statement of comprehensive income
Revenue 6,605 1,111
Expenses (2,669) (3,709)
Reversal of impairment losses 1,446 –
Surplus/(deficit) before income tax 5,382 (2,598)
Income tax – –
Surplus/(deficit) for the year 5,382 (2,598)
Assets and liabilities
Current assets 11,924 12,002
Non-current assets 42,407 41,737
Current liabilities (5,765) (8,792)
Non-current liabilities (4,373) (16,664)
Net assets 44,193 28,283
The Group’s share of the jointly controlled entities’ results, assets and liabilities under the discontinued
operations for the period from 1 April 2009 to 31 March 2010 are as follows:
group
Discontinued Operations2009/10
S$’0002008/09
S$’000
Statement of comprehensive income
Revenue – 57,666
Expenses – (45,221)
Surplus before income tax – 12,445
Income tax – 581
Surplus for the year – 13,026
Assets and liabilities
Current assets – 44,378
Non-current assets – 99,614
Current liabilities – (57,211)
Non-current liabilities – (57,063)
Net assets – 29,718
13. LONg-TERM INVESTMENTS
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
Unquoted equities, at cost 3,600 3,600 3,600 3,600
Other investments, at cost 150 150 150 150
3,750 3,750 3,750 3,750
Long-term investments are classified as available-for-sale financial assets. These long-term investments are
stated at cost less impairment losses, if any, as these do not have a quoted market price in an active market
and other methods of reasonably estimating their fair value are inappropriate.
The investments in unquoted equities offer the Authority the opportunity for returns through dividend
income and fair value gains.
14. DERIVATIVE FINANCIAL INSTRUMENTS
group and Authority2009/10
S$’0002008/09
S$’000
Forward exchange contracts, at fair value 19,098 7,875
Analysed as:
Current (Note 19) 9,542 3,462
Non-current 9,556 4,413
19,098 7,875
At the end of the reporting period, the total notional amount of forward exchange contracts outstanding to
which the Group and Authority are committed is as follows:
group and Authority2009/10
group and Authority2008/09
Contract Amount
Contract Amount
Sell Buy Fair value gain Sell Buy Fair value gain$’000 $’000 S$’000 $’000 $’000 S$’000
SGD/Danish
Krone (“DKK”)
forward exchange
contracts – – – SGD 867 DKK3,200 2
SGD/Australian
Dollars (“AUD”)
forward exchange
contracts SgD62,654 AUD67,100 19,098 SGD 111,423 AUD 117,593 7,873
SgD62,654 19,098 SGD 112,290 7,875
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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103
15. STAFF LOANS
group and Authority2009/10
S$’0002008/09
S$’000
Repayable:
Current (Note 19) 165 176
Non-current 805 925
970 1,101
Classified as held for sale
Current (Included as part of other debtors and prepayments)(Note 23) – 193
Non-current (Note 23) – 250
– 443
970 1,544
These comprise various loans to the Authority’s staff in accordance with the terms of the Authority’s loan
schemes.
Other than the computer and study loans which are interest-free, the other loans are repayable with interest
at rates ranging from 4.25% to 4.5% (2008/09: 4.25% to 4.5%) per annum. The repayment period for housing
and other loans are up to 25 and 7 years respectively. Interest rates are re-priced at intervals of 1 year.
In the opinion of the management, the carrying amount of the staff loans approximates their fair values.
16. pREpAID LEASE
group and Authority2009/10
S$’000
Cost:
At 1 April 2009 and 31 March 2010 12,290
Accumulated amortisation:
At 1 April 2009 1,047
Amortisation charge for the year 410
At 31 March 2010 1,457
Carrying amount:
At 1 April 2009 11,243
At 31 March 2010 10,833
group and Authority2009/10
S$’0002008/09
S$’000
Comprising:
Current (Note 19) 410 410
Non-current 10,423 10,833
10,833 11,243
Prepaid lease comprises premium paid for leasehold land to Singapore Land Authority. The land was leased
to Singapore Airshow & Events Pte Ltd for the new exhibition centre on a back-to-back lease arrangement.
17. FUNDS WITH INVESTMENT MANAgERS
group and Authority2009/10
S$’0002008/09
S$’000(restated)
Equities, at fair value 49,670 34,748
Bonds, at fair value 7 –
Forward exchange contracts 126 93
Other assets
Cash and cash equivalents 1,812 1,158
Dividend receivable 142 204
Amount receivable 406 250
Liabilities
Amount payable to investment managers (1,249) (1,239)
50,914 35,214
group and Authority2009/10
S$’0002008/09
S$’000
Denominated in:
– United States Dollars 20,054 16,416
– British Pounds 5,385 2,584
– Japanese Yen 4,805 4,914
– Australian Dollars 4,344 2,016
– Euro 3,107 5,681
– Singapore Dollars 626 (38)
– Others 12,593 3,641
50,914 35,214
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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104 Civil Aviation Authority of Singapore2009/2010 Annual Report
105
18. TRADE DEBTORS AND ACCRUED INCOME
group Authority
2009/10S$’000
2008/09S$’000
2009/10S$’000
2008/09S$’000
Trade debtors
– Subsidiary companies (Note 11) – – – 68
– Jointly controlled entity (Note 12) – 12 – 12
– Related parties (Note 6) 6,299 299 6,299 299
– Third parties 90,475 29,581 90,475 29,581
96,774 29,892 96,774 29,960
Allowance for doubtful debts
– Third parties (32) (1,440) (32) (1,440)
96,742 28,452 96,742 28,520
Accrued income 10,634 497 10,634 497
107,376 28,949 107,376 29,017
Classified as held for sale (Note 23) – 57,446 – 50,435
107,376 86,395 107,376 79,452
The average credit period for trade receivables ranges from 13 to 30 days (2008/09: 13 to 30 days). No
interest is charged on the trade receivables for payment received before or on the due date of the invoice.
Thereafter, interest is charged at 8% (2008/09: 8%) per annum on the outstanding balance.
Trade receivables are provided on estimated non-recoverable amounts based on management’s assessment
and past default experience.
Included in the Group’s and Authority’s trade receivable balance are debtors with a carrying amount of
S$1,526,000 (2008/09: S$8,873,000) which are past due at the reporting date for which the Group and
Authority has not provided as there has not been a significant change in credit quality and the amounts are
still considered recoverable.
In determining the recoverability of a trade receivable, the Group and Authority noted no change in the
credit quality of the trade receivable from the date credit was initially granted up to the reporting date.
Accordingly, the management believes that there is no further credit provision required in excess of the
allowance for doubtful debts.
The Authority’s trade receivables due from subsidiaries were interest-free and repayable on demand and the
average age of these receivables was less than 30 days. The Authority had not made any allowance as the
management was of the view that these receivables were recoverable.
Included in the allowance for doubtful debts are specific trade receivables with a balance of S$32,000
(2008/09: S$1,440,000) which have been assessed as non-recoverable. The impairment recognised
represents the difference between the carrying amount of the specific trade receivable and present value of
expected proceeds.
The table below is an analysis of trade receivables as at 31 March:
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
Not past due and not impaired 95,216 19,579 95,216 19,647
Past due but not impaired (i) 1,526 8,873 1,526 8,873
Past due and no response to repayment demands 32 1,440 32 1,440
Less: Allowance for doubtful debts (32) (1,440) (32) (1,440)
Total trade receivables, net 96,742 28,452 96,742 28,520
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
Note:
(i) Aging of receivables that are past due but not impaired
Past due
1-30 days 1,304 5,872 1,304 5,872
31-60 days 15 2,320 15 2,320
61-90 days 49 288 49 288
More than 91 days 158 393 158 393
1,526 8,873 1,526 8,873
Movement in the allowance for doubtful trade receivables:
group and Authority2009/10
S$’0002008/09
S$’000
Balance at beginning of the year 1,440 –
(Decrease)/Increase in allowance recognised in statements of
comprehensive income (1,408) 1,440
Balance at end of the year 32 1,440
All trade debtors and accrued income of the Group and Authority are denominated in the respective
functional currencies of the Authority and group entities.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
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106 Civil Aviation Authority of Singapore2009/2010 Annual Report
107
19. OTHER DEBTORS AND pREpAYMENTS
group Authority2009/10
S$’0002008/09
S$’000(restated)
2009/10S$’000
2008/09S$’000
(restated)
Interest receivables 447 646 447 646
Current portion of
– prepaid lease (Note 16) 410 410 410 410
– staff loans (Note 15) 165 176 165 176
Prepayments 5,142 2,476 5,142 2,476
Property tax receivable 25,361 – 25,361 –
Deposits – 38,580 – 38,580
Recoverable expenses due from
– Subsidiary companies (Note 11) – – – 3
– Related parties (Note 6) – 1,728 – 1,728
– Third parties 118 163 118 186
Forward exchange contracts (Note 14) 9,542 3,462 9,542 3,462
Others 6,896 540 6,896 540
48,081 48,181 48,081 48,207
Classified as held for sale (Note 23) – 5,347 – 481
48,081 53,528 48,081 48,688
The Group’s and Authority’s other debtors that are not denominated in the functional currencies of the
respective entities are as follows:
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
United States Dollars – 65 – 65
20. AMOUNT DUE FROM CHANgI AIRpORT gROUp (“CAg”)
The legislative transfer of the airport undertaking to the successor company, Changi Airport Group
(Singapore) Pte Ltd (“CAG”) was provided for in the Civil Aviation Authority of Singapore Act 2009 (No. 17
of 2009). It was stipulated that, inter alia, on the transfer date, the property, rights and liabilities comprised
in the airport undertaking of the Authority shall become, by virtue of this Act and without further assurance,
the property, rights and liabilities of the successor company nominated by the Minister and such part of the
excluded property as may be determined by the Minister under this Act, shall vest in the successor company
on a lease.
The Authority has reached a preliminary agreement with CAG on the net value of S$3,278,655,000 for the
airport assets and liabilities transferred in connection with the corporatisation exercise. A confirmation
agreement will be drawn up to record the financial values of the transferred assets and liabilities as agreed
upon between the two entities. The settlement is subject to the finalisation of this ancillary agreement
while the CAAS Act 2009 has given effect to the execution of the transfer. A supplemental agreement to
the Master Lease Agreement will also be drawn up to record the financial values of the airport buildings
transferred to CAG.
The amount due from CAG of S$3,278,655,000 relates to the preliminary aggregate consideration value
for the transfer of airport assets and liabilities in connection with the corporatisation exercise and comprises
the following:
Authority2009/10
S$’000
Assets:
Property, plant and equipment 2,350,764
Capital work-in-progress 157,168
Investment in subsidiary companies (Note 39) 257,163
Interest in jointly controlled entities 10,652
Staff loans 419
Inventories 10,187
Trade debtors and accrued income 86,745
Amount held for subsidiary companies 160,713
Cash and cash equivalents 580,000
3,613,811
Liabilities:
Trade creditors and accrued expenses 34,507
Other creditors 26,093
Amount owing to subsidiary companies 160,713
Deferred income 112,048
Provision for gratuity 1,795
335,156
Net assets of disposal group 3,278,655
21. AMOUNT HELD FOR/OWINg TO SUBSIDIARY COMpANIES
The amount represents funds from subsidiary companies managed by the Authority on their behalf, and is
unsecured and repayable on demand.
Authority2009/10
S$’0002008/09
S$’000
Classified as held for sale (Note 23) – 161,553
– 161,553
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
108 Civil Aviation Authority of Singapore2009/2010 Annual Report
109
22. CASH AND CASH EQUIVALENTS
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
Funds on Government's Centralised Liquidity
Management scheme 258,567 – 258,567 –
Bank and cash balances 21,188 10,486 21,188 10,486
Fixed deposits 545,078 1,091,300 545,078 1,091,300
824,833 1,101,786 824,833 1,101,786
Classified as held for sale (Note 23) – 644,537 – 411,000
824,833 1,746,323 824,833 1,512,786
The carrying amounts of cash and cash equivalents approximate their fair values.
The funds on Government’s Centralised Liquidity Management scheme are centrally maintained as a
consolidated pool and are available on request.
Fixed deposits bear average effective interest rate ranging from 0.25% to 3.75% (2008/09: 0.06% to 1.20%)
per annum and for a tenure ranging from 31 to 147 days (2008/09: 1 to 159 days). The balances are repayable
on demand.
The above balances that are not denominated in the functional currencies of the respective entities are as follows:
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
Australian dollars 29,178 – 29,178 –
23. ASSETS HELD FOR SALE
Following the announcement of the corporatisation of Changi Airport and restructuring of Civil
Aviation Authority of Singapore in 2007, the relevant assets and liabilities were identified for transfer
to the corporatised entity, Changi Airport Group (Singapore) Pte Ltd. As guided by the principles
for formation and divestment of companies held by Ministries and Statutory Boards as set out in
MOF’s Finance Circular Minute No. M17/2007, only assets pertinent to the corporatised entity’s
core operations were transferred so as to ensure a lean statement of financial position for the
new entity.
As at 31 March 2009, the management determined that the disposal group was available for immediate sale in
its present condition and the sale was highly probable. Accordingly, SB-FRS and FRS 105 Non-current Assets
Held for Sale and Discontinued Operations apply. The net assets attributable to the airport undertaking have
been classified as a disposal group held for sale and are presented separately on the statement of financial
position. The net surplus from discontinued operations (Note 38) is presented separately in the Group’s and
the Authority’s statements of comprehensive income for the year.
The major classes of assets and liabilities comprising the disposal group classified as held for sale were as follows:
Note
group Authority2009/10
S$’0002008/09
S$’000(restated)
2009/10S$’000
2008/09S$’000
(restated)
Assets:
Property, plant and equipment 9 – 2,284,484 – 2,283,744
Capital work-in-progress 10 – 273,819 – 273,819
Investment in subsidiary companies 11 – – – 306,539
Interest in jointly controlled entities 12 – 12,325 – 10,928
Available-for-sale asset (Note A) – 25,926 – –
Staff loans 15 – 250 – 250
Inventories – 11,076 – 11,076
Trade debtors and accrued income (Note B) 18 – 57,446 – 50,435
Other debtors and prepayments 19 – 5,347 – 481
Amount held for subsidiary companies 21 – – – 161,553
Cash and cash equivalents 22 – 644,537 – 411,000
Total assets classified as held for sale – 3,315,210 – 3,509,825
Liabilities:
Trade creditors and accrued expenses 24 – 14,000 – 9,503
Other creditors 25 – 23,498 – 23,332
Provision for obligations under guarantees 26 – 5,963 – –
Income tax payable – 1,827 – –
Amount owing to subsidiary companies 21 – – – 161,553
Deferred tax liability 31 – 1,452 – –
Deferred income 30 – 108,339 – 108,339
Provision for gratuity – 1,504 – 1,504
Liabilities directly associated with assets
classified as held for sale – 156,583 – 304,231
Net assets of disposal group – 3,158,627 – 3,205,594
Note A
In 2008/09, the Group invested US$36,000,000 (S$55,188,000 equivalent) in Beijing Capital International
Airport Co., Ltd. (“BCIA”), a company listed on the Hong Kong Stock Exchange. BCIA was principally engaged
in the ownership and operation of the Beijing International Airport in China. The carrying amount of the
investment, which was accounted for as an available-for-sale asset as at 31 March 2009 was approximately
S$25,926,000.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
110 Civil Aviation Authority of Singapore2009/2010 Annual Report
111
Note B
group Authority2009/10 2008/09 2009/10 2008/09
Trade debtors and accrued income S$’000 S$’000 S$’000 S$’000
Trade debtors – Third Parties – 2,136 – –
Accrued Income – 55,310 – 50,435
– 57,446 – 50,435
The table below is an analysis of trade receivables as at 31 March:
group Authority2009/10 2008/09 2009/10 2008/09
S$’000 S$’000 S$’000 S$’000
Not past due and not impaired – 2,032 – –
Past due but not impaired (i) – 104 – –
Total trade receivables, net – 2,136 – –
Note:
(i) Aging of receivables that are past due but not impaired
group Authority
past due2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
1 – 30 days – – – –
31 – 60 days – 81 – –
61 – 90 days – 22 – –
More than 91 days – 1 – –
– 104 – –
24. TRADE CREDITORS AND ACCRUED EXpENSES
group Authority2009/10
S$’0002008/09
S$’000(restated)
2009/10S$’000
2008/09S$’000
(restated)
Trade creditors
– Related parties (Note 6) – 771 – 771
– Third parties 3,656 46,786 3,656 46,786
Income billed and received in advance 88,960 163 88,960 163
Accrued expenses 44,818 170,734 44,818 170,734
137,434 218,454 137,434 218,454
Classified as held for sale (Note 23) – 14,000 – 9,503
137,434 232,454 137,434 227,957
The average credit period on purchases of goods and services is 1 month (2008/09: 1 month). No interest is
charged on outstanding balance.
The Group’s and Authority’s trade creditors that are not denominated in the functional currencies of the
respective entities are as follows:
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
United States Dollars 11 209 11 209
Sterling Pounds 2 – 2 –
Canadian Dollars – 1 – 1
Euro – 17 – 17
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
112 Civil Aviation Authority of Singapore2009/2010 Annual Report
113
25. OTHER CREDITORS
group Authority2009/10
S$’0002008/09
S$’000(restated)
2009/10S$’000
2008/09S$’000
(restated)
Salary related accruals 9,810 9,281 9,810 9,281
Sundry creditors and other accruals (6) 5,959 (6) 5,959
Deposits received 258 132 258 132
Current portion of
– Deferred income (Note 30) 410 423 410 423
– Provision for pension and post retirement
medical benefits (Note 32) 632 624 632 624
– Obligations under finance leases (Note 33) – 702 – 702
11,104 17,121 11,104 17,121
Liabilities directly associated with assets
classified as held for sale (Note 23) – 23,498 – 23,332
11,104 40,619 11,104 40,453
26. pROVISION FOR OBLIgATIONS UNDER gUARANTEES
group2009/10
S$’0002008/09
S$’000
At beginning of the year – 7,998
Provision written back – (2,708)
Translation differences – 673
Classified as held for sale (Note 23) – (5,963)
At end of the year – –
These provisions were made by subsidiaries and they were related to standby letters of credit provided
to secure a jointly controlled entity’s obligations under the airport investment contracts and related loan
agreements entered into between the jointly controlled entity and the financiers of these airports.
27. CONTRIBUTION pAYABLE TO gOVERNMENT CONSOLIDATED FUND
The contribution to the Government Consolidated Fund is in accordance with Section 3(a) of the Statutory
Corporations (Contributions to Consolidated Fund) Act (Cap. 319A, 2004 Revised Edition). The contribution
is computed based on the guidelines specified by the Ministry of Finance.
28. AMOUNT OWINg TO MINISTRY OF FINANCE (“MOF”) – RETURN OF SURpLUS
The Ministry of Finance (“MOF”) requires Statutory Boards undergoing corporatisation to return excess
surplus funds to the Government. Following the corporatisation of Changi Airport, the Authority made a
provision of S$560,000,000 to be returned to the Government.
29. AMOUNT OWINg TO MINISTRY OF FINANCE (“MOF”) – CONSIDERATION ON TRANSFER OF AIRpORT
ASSETS AND LIABILITIES
The Ministry of Finance (“MOF”) requires the Authority to return the consideration of S$3,278,655,000
receivable from CAG on the transfer of airport assets and liabilities to the Government.
30. DEFERRED INCOME
group and Authority2009/10
S$’0002008/09
S$’000(restated)
At beginning of the year 11,410 129,598
Lease income received during the year – –
11,410 129,598
Amount taken to statement of comprehensive income (576) (5,136)
Classified as held for sale
Current (included as part of other creditors in Note 23) – (4,713)
Non-current (Note 23) – (108,339)
At end of the year 10,834 11,410
Comprising:
Current (Note 25) 410 423
Non-current 10,424 10,987
10,834 11,410
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
114 Civil Aviation Authority of Singapore2009/2010 Annual Report
115
31. DEFERRED TAX LIABILITY
The following are the major deferred tax liabilities recognised by the Group, and the movements thereon,
during the current and prior reporting periods:
Accelerated tax depreciation
S$’000
Unremittedforeign sourcedinterest income
S$’000Total
S$’000
group
At 1 April 2008 30 1,301 1,331
Charge to income or expenditure for the year (Note 36) (3) (12) (15)
Exchange differences 3 133 136
At 31 March 2009 (as part of disposal group in Note 23) 30 1,422 1,452
Transferred to CAG (30) (1,422) (1,452)
At 31 March 2010 – – –
32. pROVISION FOR pENSION AND pOST RETIREMENT MEDICAL BENEFITS pLAN
The Authority provides pension and post retirement medical benefit schemes to certain of its employees
who did not opt for transfer to the Central Provident Fund Scheme. The pension and post retirement medical
benefits schemes are closed to new entrants.
i. pension Scheme
An eligible employee, upon reaching his retirement date and who has completed at least 10 years of
service, is entitled to opt for one of the three retirement benefit options:
Option (i) : Fully commuted pension gratuity
Option (ii) : Full annual pension
Option (iii) : Partial commutation of pension with gratuity
ii. post Retirement Medical Benefits Scheme
An eligible employee, upon reaching his retirement date and who has completed at least 10 years of
service, is entitled to the following post retirement medical benefits:
Option (i) : Hospitalisation benefits
Option (ii) : Outpatient benefits
Option (iii) : Dental benefits
The actuarial valuation of the present value of the defined benefit obligation was carried out as at 31 March
2008 by a qualified independent actuary in accordance with SB-FRS and FRS 19. In assessing the plan’s
liabilities, the Projected Unit Credit actuarial methodology has been applied. For the purpose of ascertaining
the obligation as of 31 March 2010, management has conducted a review of the bases and underlying
assumptions used in the calculation.
In recognising actuarial gains or losses, the Authority has adjusted its net liability to be equal to the present
value of obligation. Any actuarial gains or losses arising in the year of valuation will be recognised immediately.
This actuarial gains and losses recognition methodology will be applied consistently in all future actuarial
valuations.
The principal financial assumptions used for the purpose of the actuarial valuations were as follows:
Valuation at2009/10
%2008/09
%
Discount rate 2.0 2.0
Expected rate of salary increases 2.0 2.0
Medical inflation rate 5.0 5.0
The amount recognised in the statement of financial position in respect of the Group’s defined benefit plans
is as follows:
group and Authority2009/10
S$’0002008/09
S$’000
Current (Note 25) 632 624
Non-current 22,230 19,625
Total liability recognised in the statement of financial position 22,862 20,249
Amounts recognised in income and expenditure in respect of the defined benefit plan are as follows:
group and Authority2009/10
S$’0002008/09
S$’000
Current service cost 383 384
Interest cost 434 431
Actuarial losses recognised in the year 3,063 –
3,880 815
The charge for the year is included in the employee benefits expense in the statements of comprehensive
income.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
116 Civil Aviation Authority of Singapore2009/2010 Annual Report
117
Changes in the present value of the defined benefit obligation are as follows:
group and Authority2009/10
S$’0002008/09
S$’000
Opening defined benefit obligation 20,249 22,147
Current service cost 383 384
Interest cost 434 431
Actuarial losses 3,063 –
Benefits paid (1,267) (2,713)
Closing defined benefit obligation 22,862 20,249
33. OBLIgATIONS UNDER FINANCE LEASES
group and Authority
Minimumlease payments
present value of minimumlease payments
2009/10S$’000
2008/09S$’000
2009/10S$’000
2008/09S$’000
Amounts payable under finance leases:
Within one year – 731 – 702
In the second to fifth year Inclusive – – – –
– 731 – 702
Less: Future finance charges – (29) – –
Present value of lease obligations – 702 – 702
Less: Amount due for settlement within
12 months, included in other creditors
(Note 25) – (702)
Amount due for settlement after 12 months – –
The finance lease, which was for a computer system, had expired during the year. At the expiration of the
lease, the Authority had the option to purchase the asset.
The effective interest rate of the finance lease was Nil% (2008/09: 3.44%) per annum.
All lease obligations were denominated in Singapore Dollars.
The fair value of the company’s lease obligations approximated their carrying amount.
34. SALARIES, WAgES AND STAFF BENEFITS
The following are included in salaries, wages and staff benefits:
group Authority2009/10
S$’0002008/09
S$’000(restated)
2009/10S$’000
2008/09S$’000
(restated)
Continuing operations
Pension and post retirement medical
benefits cost (Note 32) 3,880 815 3,880 815
Employer’s contribution to provident fund 5,239 4,588 5,239 4,588
Key management personnel compensation (Note 6) 861 1,598 861 1,598
Discontinued operations (Note 38)
Employer’s contribution to provident fund 1,318 6,283 1,318 6,283
Key management personnel compensation (Note 6) 1,097 1,667 1,097 1,667
35. NON-OpERATINg INCOME/(LOSS) (NET)
group Authority
Note
2009/10S$’000
2008/09S$’000
(restated)
2009/10S$’000
2008/09S$’000
(restated)
Continuing operations
Non-operating income
Income from funds with investment
managers 36 14,983 – 14,983 –
Changes in fair value of forward
exchange contracts
– Realised gain 2,341 – 2,341 –
– Unrealised gain 11,223 6,582 11,223 6,582
Interest income 3,541 12,049 3,541 12,049
Dividend income (1) 204 884 204 884
Gain from foreign exchange 13,831 1,763 13,831 1,764
Others 6,909 3,397 6,909 3,397
53,032 24,675 53,032 24,676
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
118 Civil Aviation Authority of Singapore2009/2010 Annual Report
119
group Authority
Note2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000(restated) (restated)
Continuing operations (cont’d)
Non-operating expense
Loss from funds with investment managers 36 – (37,988) – (37,988)
Loss on disposal of property, plant
and equipment (43) (1,250) (43) (1,250)
(43) (39,238) (43) (39,238)
Non-operating income/(loss), net 52,989 (14,563) 52,989 (14,562)
Discontinued operations (Note 38)
Non-operating income
Interest income 284 7,139 – 4,581
Gain on disposal of subsidiary to another
subsidiary – 26 – 45,445
Write back of provision for obligations
under guarantee – 2,708 – –
Gain from foreign exchange 10,000 – – –
Others 1,889 1,205 1,890 1,817
12,173 11,078 1,890 51,843
Non-operating expense
Loss on disposal of property, plant
and equipment – (11) – –
Loss from foreign exchange – (21,178) – –
Impairment loss on investments in
subsidiary 11 – – (49,375) –
Loss on disposal of investment in
subsidiary group 39 (70,240) – – –
(70,240) (21,189) (49,375) –
Non-operating (loss)/income (net) (58,067) (10,111) (47,485) 51,843
(1) Dividend income of US$Nil [2008/09: US$18,000 (S$26,152 equivalent)] was received from a jointly controlled entity (Note 12), and S$204,000 (2008/09: S$884,370) was received as a return of investment in unquoted equities (Note 13).
36. INCOME/(LOSS) FROM FUNDS WITH INVESTMENT MANAgERS
group and Authority2009/10
S$’0002008/09
S$’000
Continuing operations
Interest (expense)/income (34) 2,600
Dividend income 1,005 2,135
Capital loss (4,010) (25,094)
Gain/(Loss) from foreign exchange 289 (15,194)
Net fair value gain/(loss) 18,152 (1,038)
Investment gain/(loss) 464 (410)
Investment expenses (883) (987)
Total (Note 35) 14,983 (37,988)
37. INCOME TAX (CREDIT)/EXpENSE
group2009/10
S$’0002008/09
S$’000
Discontinued operations (Note 38)
Tax expense comprises:
Current tax expense – 566
Deferred tax expense relating to the origination and
reversal of temporary differences – 63
Overprovision in prior years
– Current tax (400) (547)
Effect of changes in tax rates – (78)
Total tax expense (400) 4
Domestic income tax is calculated at 17% (2008/09: 17%) of the estimated assessable surplus before
contribution to Government Consolidated Fund and income tax for the year. Taxation for other jurisdictions
is calculated at the rates prevailing in the relevant jurisdictions.
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
120 Civil Aviation Authority of Singapore2009/2010 Annual Report
121
The total charge for the year can be reconciled to the accounting surplus before contribution to Government
Consolidated Fund and income tax as follows:
group2009/10
S$’0002008/09
S$’000
Surplus before contribution to Government Consolidated Fund
and income tax (Note 38) 39,977 465,890
Jointly controlled entities’ results presented net of tax (Note 38) – 1,159
39,977 467,049
Numerical reconciliation of income tax expense
group2009/10
S$’0002008/09
S$’000
Income tax expense calculated at 17% (2008/09: 17%) 6,796 79,398
Tax exemption and rebates (6,796) (84,345)
Effect of expenses that are not deductible in determining taxable profit – 5,198
Deferred tax assets not recognised – 332
Effect of different tax rates of subsidiary operations in other jurisdictions – 46
Adjustment recognised in current year in relation to current tax of prior year (400) (547)
Effect on the change in income tax rate – (78)
(400) 4
38. DISCONTINUED OpERATIONS
As disclosed in Note 23, corporatisation of Changi Airport took effect on 1 July 2009. As a result of the
corporatisation exercise, the results of the discontinued operations for the period from 1 April 2008 to
30 June 2009 are as follows:
group Authority2009/10
S$’0002008/09
S$’000(restated)
2009/10S$’000
2008/09S$’000
(restated)
Income
Landing, parking and aerobridge fees 55,733 248,026 55,733 248,026
Passenger and security service charges 71,858 240,760 71,858 240,760
Rental of office and warehouse space 22,560 94,103 22,689 94,670
Airport concession fees 118,637 521,550 118,637 521,550
Franchise fees 18,875 84,842 18,875 84,842
Utility and service charges 14,137 68,762 14,142 68,762
Sundry income 9,643 34,761 5,571 24,752
311,443 1,292,804 307,505 1,283,362
Less: Expenditure
Salaries, wages and staff benefits 21,347 74,814 18,526 63,887
Maintenance of building and equipment 56,413 246,496 56,287 246,496
Impairment on property, plant and equipment
relating to assets held for sale (Note 9) 59,363 – 59,363 –
Depreciation of property, plant and
equipment (Note 9) – 293,960 – 293,555
Property tax 18,714 33,908 18,714 33,908
Services related expenses 32,496 111,136 32,126 111,136
Other operating expenses 25,066 55,330 24,701 48,131
213,399 815,644 209,717 797,113
Non-operating (loss)/income (net) (Note 35) (58,067) (10,111) (47,485) 51,843
Share of results of jointly controlled entities (Note 12) – (1,159) – –
Surplus for the year before contribution
to government Consolidated Fund
and income tax 39,977 465,890 50,303 538,092
Contribution to Government Consolidated Fund
(Note 28) (8,551) (69,102) (8,551) (69,102)
Income Tax (Note 37) 400 (4) – –
Net surplus for the year 31,826 396,784 41,752 468,990
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
122 Civil Aviation Authority of Singapore2009/2010 Annual Report
123
During the year, the discontinued operations contributed S$174,478,000 (2008/09: S$792,032,000) to the
Group’s net operating cash flows, paid S$Nil (2008/09: S$17,964,000) in respect of investing activities and
received S$Nil (2008/09: S$1,046,000) in respect of financing activities.
39. COMpONENTS OF OTHER COMpREHENSIVE INCOME
group2009/10
S$’0002008/09
S$’000
Currency translation reserve:
Arising during the year 68,635 23,310
Reclassification to comprehensive income on disposal of investment
in subsidiary (Note A) (40,780) –
27,855 23,310
Revaluation reserve:
Arising during the year 58,345 (29,668)
Reclassification to comprehensive income on disposal of investment
in subsidiary (Note A) (29,358) –
28,987 (29,668)
56,842 (6,358)
Note A
group2009/10
S$’0002008/09
S$’000
Realised loss on disposal of subsidiary:
a. Currency translation reserve
– Reclassification to income and expenditure statement 40,780 –
b. Revaluation reserve
– Reclassification to income and expenditure statement 29,358 –
c. Restricted reserve
– Reclassification to income and expenditure statement 102 –
70,240 –
40. DISpOSAL OF INVESTMENT IN SUBSIDIARIES
On 1 July 2009, the Authority transferred its entire interest in its subsidiary, Changi Airports International Pte
Ltd (“CAI”), at the carrying amounts of the assets and liabilities of the subsidiary.
Carrying amounts of net assets disposed:2009/10
S$’000
Non-current assets
Plant and equipment 611
Advisory fee-investment 176
Interest in jointly controlled entities 306
Investment in Beijing Capital International Airport 24,219
Total non-current assets 25,312
Current assets
Trade and other receivables 12,732
Funds placed with CAAS 160,927
Cash and bank balances 70,318
Total current assets 243,977
Current liabilities
Trade and other payables (1,434)
Provisions and accruals (9,315)
(10,749)
Non-current liability
Deferred tax liability (1,377)
Net assets (Note 20) 257,163
Equity:
Share capital 306,539
Reserves (43,160)
Accumulated deficit (6,216)
257,163
41. COMMITMENTS
group Authority2009/10
S$’0002008/09
S$’0002009/10
S$’0002008/09
S$’000
Capital commitments
Amount approved and contracted 176,934 1,054,025 176,934 1,054,025
Amount approved but not contracted 140,793 246,020 140,793 246,020
317,727 1,300,045 317,727 1,300,045
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
124 Civil Aviation Authority of Singapore2009/2010 Annual Report
125
The Authority had committed to return surplus to the Government as follows:
group and Authority2009/10
S$’0002008/09
S$’000
Within one year – 400,000
42. RECLASSIFICATIONS AND COMpARATIVE FIgURES
Certain reclassifications have been made to the prior year’s financial statements to enhance comparability
with current year’s financial statements, following the Authority’s change in methodology on the split of
assets and liabilities for transfer to CAG.
As a result, certain line items have been amended on the face of the statement of financial position, statement
of comprehensive income and the related notes to the financial statements. Comparative figures have been
adjusted to conform with the current year’s presentation.
The items were reclassified as follows:
group Authoritypreviously
reportedAfter
reclassificationpreviously
reportedAfter
reclassification2008/09
S$’0002008/09
S$’0002008/09
S$’0002008/09
S$’000
Statements of financial position
Current assets
Funds with investment manager – 35,214 – 35,214
Other debtors and prepayments 48,469 48,181 48,495 48,207
Assets classified as held for sale 3,350,136 3,315,210 3,544,751 3,509,825
Current liabilities
Trade creditors and accrued expenses 223,707 218,454 223,707 218,454
Other creditors 16,711 17,121 16,711 17,121
Liabilities directly associated with assets
classified as held for sale 162,574 156,583 310,222 304,231
Non-current liabilities
Deferred income 153 10,987 153 10,987
These reclassifications have no impact on the corresponding amount as at 31 March 2007.
group Authoritypreviously
reportedAfter
reclassificationpreviously
reportedAfter
reclassification2008/09
S$’0002008/09
S$’0002008/09
S$’0002008/09
S$’000
Consolidated statement of comprehensive income
Income
Landing, parking and aerobridge fees 443 – 443 –
Passenger and security service charges 59,614 – 59,614 –
Rental of office and warehouse space 2,317 – 2,317 –
Utilities and service charges 345 – 345 –
Aviation training programme fee – 5,374 – 5,374
Certification, examination and licence fee – 11,560 – 11,560
Sundry income 21,009 4,776 21,009 4,776
Expenses
Salaries, wages and staff benefits 61,854 59,180 61,854 59,180
Maintenance of buildings and equipment 26,583 25,193 26,583 25,193
Property tax – 23,563 – 23,563
Services related expenses 14,392 13,011 14,392 13,011
Other operating expenses 2,970 2,883 2,970 2,883
Non-operating income/(loss), net 18,062 (14,563) 63,479 (14,562)
Net surplus from discontinuing operations
for the year 284,110 396,784 310,900 468,990
Civil Aviation Authority of Singapore and its SubsidiariesNotes to Financial StatementsAs at 31 March 2010
Civil Aviation Authority of Singapore2009/2010 Annual Report
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Singapore Changi Airport, PO Box 1, Singapore 918141Tel 65 6542 1122 Fax 65 6542 1231
www.caas.gov.sg
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