Page 18 - NYAA FY2024

Docusign Envelope ID: F067D57E-6E60-4F26-8227-97F17DC4DBB9

NATIONAL YOUTH ACHIEVEMENT AWARD ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2024

2. Material accounting policy information (continued)

2.11 Financial assets (continued)

(ii) At subsequent measurement

Debt instrument (continued)

For cash and bank deposits, the general 3 stage approach is applied. Credit
loss allowance is based on a 12-month expected credit loss if there is no
significant increase in credit risk since the e initial recognition of the assets.
If there is a significant increase in credit risk since initial recognition, lifetime
expected credit loss will be calculated and recognised.

2.12 Other payables

Other payables represent liabilities for goods and services provided to the
Association prior to the end of the financial year which are unpaid. They are
classified as current liabilities if payment is due within one year or less (or in the
normal operating cycle of the business, if longer). Otherwise, they are presented as
non-current liabilities.

Other payables are initially recognised at fair value and subsequently carried at
amortised cost using the effective interest method.

2.13 Fair value estimation of financial assets and liabilities

The fair values of current financial assets and liabilities carried at amortised cost
approximate their carrying amounts.

2.14 Income taxes

The Association is an Institution of a Public Character ("IPC") under the Charities
Unit of the Ministry of Culture, Community and Youth. Under this scheme, the
income of the Association is exempt from tax under Section 13M(2)(b) of the Income
Tax Act.

2.15 Employee compensation

Employee benefits are recognised as an expense unless the cost qualifies to be
capitalised as an asset.

(a) Defined contribution plans

Defined contribution plans are post-employment benefit plans under which
the Association pays fixed contributions into separate entities such as the
Central Provident Fund on a mandatory, contractual or voluntary basis. The
Association has no further payment obligations once the contributions have
been paid.

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