Enabling OppOrtunitiEs thrOugh aviatiOn

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


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.



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



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



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



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



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.



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



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


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.



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



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



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



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



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



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.



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



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



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.



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



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



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.



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



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



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



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



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



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



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


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


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



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.



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.



63

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.



65

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.


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.



67

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.




69

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.




71

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.




73

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


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


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.




75

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.




77

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)




79

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




81

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)




83

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



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




235,428 19,625 – (29) 255,024


Non-interest bearing NA 24,966 – – – 24,966

24,966 – – – 24,966

Total



260,394 19,625 – (29) 279,990




85

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


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


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



Fixed interest rate


– Fixed deposits 0.45% 572,553 – – – 572,553

740,192 250 – (326) 740,116

Total


Fixed interest rate


– Fixed deposits 0.41% 1,663,853 – – – 1,663,853

1,932,182 1,175 – (815) 1,932,542

Weightedaverage


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



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



Fixed interest rate


entities 4.89% 7,058 – – (326) 6,732

– Fixed deposits 0.45% 411,000 – – – 411,000

469,702 250 – (326) 469,626

Total


Fixed interest rate


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




87

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.




89

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


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




91

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




93

Leasehold land

S$’000

Runways,taxiways

and othersS$’000

BuildingsS$’000

plant andequipment

S$’000

Vehiclesand

vessels $’000



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



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




95

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



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




97

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) –


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 –


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@


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


of consultancy service in the field

of civil aviation

Changi Airports Russia

Pte Ltd


aviation related projects and

provision of airport related


Changi Airports St Petersburg

Pte Ltd





Changi Airport Saudi Ltd Saudi Arabia – 100 Investment in airports and civil




@ 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.




99

12. INTEREST IN JOINTLY CONTROLLED ENTITIES


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




101

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


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


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:



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




103

15. STAFF LOANS


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


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


S$’0002008/09

S$’000

Comprising:



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


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


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




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


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:


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


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:


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.




107

19. OTHER DEBTORS AND pREpAYMENTS


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:


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




109

22. CASH AND CASH EQUIVALENTS


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


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:


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


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


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.




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


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


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:


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




113

25. OTHER CREDITORS


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


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


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:



10,834 11,410




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:


S$’0002008/09

S$’000



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:


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.




117

Changes in the present value of the defined benefit obligation are as follows:


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:


S$’0002008/09

S$’000(restated)

2009/10S$’000

2008/09S$’000

(restated)


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


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)


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




119

group Authority

Note2009/10

S$’0002008/09

S$’0002009/10

S$’0002008/09


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)


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


S$’0002008/09

S$’000


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


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.




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:


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



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




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


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




125

The Authority had committed to return surplus to the Government as follows:


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


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



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




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www.caas.gov.sg

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