EMPOWERING POSSIBILITIES - IMDA · PDF fileNational University of Singapore Mr. Chey Chor Wai...

EMPOWERING POSSIBILITIESA N N U A L R E P O R T | O C T O B E R 2 0 1 6 – M A R C H 2 0 1 7

During the period in review, IMDA forged ahead with plans to groom ICM talents and develop more local content. In addition, new developmental initiatives were launched to help companies scale up their competencies, improve their storytelling abilities and prepare themselves for Singapore’s new Digital Economy.

IMDA still has a long journey ahead, one that will be filled with opportunities and challenges. Strengthening our partnerships with all stakeholders from industry partners to the community and staff is integral to achieving our future success.

FOREWORD

On the regulatory front, a key milestone was reached in creating greater competition in the telecommunications sector with the conclusion of the New Entrant Spectrum Auction. TPG Telecom emerged as the winner in this auction and its entry into Singapore is envisioned to spur innovation and provide consumers with greater service choices.

This report captures IMDA’s milestones and achievements in the first six months of its formation from October 2016 to March 2017.

Half a year into its new journey, the strong foundation laid by its predecessors - IDA and MDA – gave IMDA an excellent head-start for delivering on its promise of developing and regulating the infocomm and media (ICM) sectors in a more holistic and converged manner.

2

Ms. Janet AngVice President,

Industry Solutions, Systems of

Engagement & Smarter Cities, IBM Asia Pacific

Dr. Lily ChanChief Executive

Officer, NUS Enterprise,

National University

of Singapore

Mr. Chey Chor WaiFormer Assurance Partner, PricewaterhouseCoopers LLP

BOARD OF DIRECTORS

Mr. Steve LeonardDeputy Chairman, IMDA* Founding CEO, SGInnovate

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Mr. Chan Yeng KitChairman, IMDA,

Permanent Secretary (Defence),

Ministry of Defence

Mr. Robert GilbyManaging Director,

The Walt Disney Company

(Southeast Asia)

Mr. Ryan LimPrincipal Consultant

and Founding Partner, QED Consulting

Pte Ltd

Mr. Chng Kai FongPrincipal Private Secretary to Prime Minister, Prime Minister’s Office

Mr. Vivek KumarAssistant

Director-General, National Trades Union Congress

Mr. Ong Peng TsinManaging Director, Monk’s Hill VenturesPte Ltd

*Until 10 March 2017

BOARD OF DIRECTORS

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Ms. Jacqueline PohChief Executive Officer,

Government Technology Agency

Ms. Janet YoungManaging Director and

Head Group Channels & Digitalization,

United Overseas Bank Group

Mr. Caesar SenguptaVice President,

Product Management, Google

Ms. Tham Loke KhengExecutive Vice President (Pay TV), PCCW Media Ltd

Mr. Zahidi bin Abdul RahmanPrincipal Architect, Zahidi A.R. Arkitek

Ms. Thien Kwee EngAssistant Managing

Director, (Cluster Group Consumer, Planning and

Research & Statistics Unit), Economic Development

Board Singapore

Ms. Shirley WongManaging Partner,

TNF VenturesPte Ltd

Mr. Tan Kiat HowChief Executive

Officer,IMDA*

Mr. Colin SampsonDirector, Coli$on Ventures Pte Ltd

Mr. Gabriel LimChief Executive Officer,

IMDA* Permanent Secretary,

Ministry of Communications and

Information#

*Until 31 December 2016#From 1 January 2017

*From 1 January 2017

SENIORMANAGEMENTMr. Tan Kiat How

Chief Executive Officer, IMDA

Commissioner, Personal Data Protection Commission

Mr. Leong Keng ThaiDeputy Chief Executive,

International & Corporate

Mr. Tan Chee WeeCovering Director, Digital Literacy

Mr. Charles ChewDirector, International

Ms. Joyce TongDirector, Finance

Ms. Ann ChanDirector, Regulatory & Corporate Communications

Ms. Karen LowDirector, Industry & Marketing Communications

Ms. Charis YanChief Information Officer, Group Information Technology

Ms. Foo Shu ChingGeneral Counsel,Group Legal

Mr. Leo TanChief Counsel, Group Legal

Mr. Tow Joon LaiDirector,Corporate Services

Ms. RajaswariDirector, Human Resource

Ms. Amy ChuaDirector, Content & Standards (Broadcast, Internet & Publications)

Ms. Chetra SinnathambyDirector, Content & Standards (Films, Video Games & Arts)

Mr. Lawrence TayDirector, Enforcement, Investigation & Prosecution

Ms. Yuvarani ThangaveluDirector, Licensing

Ms. Lee Ee JiaDirector, Media Policy

Mr. Lim Chin SiangDirector, Operation Preparedness

Ms. Lee Lie YenDirector, Planning

Mr. Christopher NgDeputy Chief Executive,

Media Regulation & Cyber Security

Ms. Aileen ChiaAssistant Chief

Executive, Connectivity & Competition Development

Ms. Angeline PohAssistant Chief Executive,

Content & Innovation

Mr. Khoong Hock YunAssistant Chief Executive,

Development

Mr. Kenneth TanAssistant Chief Executive,

Assessment & Engagement

Mr. Yeong Zee KinAssistant Chief Executive, Personal Data Protection

CommissionDeputy Commissioner,

Personal Data Protection CommissionMr. Ong Tong San

Cluster Director, Competition & Resilience Development Cluster

Mr. Harin S GrewalCluster Director, Resource & Interconnection Management ClusterDirector, Interconnection & Access

Mr. Yeo Tiong YeowDirector, Competition & Market Access

Mr. Raymond LeeDirector, Resource Management & Standards

Mr. Edwin LowDirector, Accreditation

Ms. Samantha FokDirector, Enterprise DevelopmentDirector, Incentive Management

Ms. June KohDirector, Human Capital DevelopmentDirector, TeSA Programme Office

Ms. Lee Wan SieDirector, Next Generation Infrastructure Group

Ms. Tan Sze SiangDirector, Digital Broadcasting Deployment Office

Mr. Andrew KhawSenior Director, Productivity Growth Through ICT

Ms. Yip Yuen FongSenior Director, Sectoral Innovation Group

Mr. Adrian LimDirector, Education

Ms. Karen WongDirector, Healthcare & Wellness

Mr. New Soon TeeDirector, Logistics & Retail

Mr. Yip Shue HengDirector, Services

Mr. Zeck LimDirector, Technology Solutions

Mr. Wilson AngDirector, Intelligent Computing Labs

Mr. Joachim NgDirector, Innovation SpacesDirector, Singapore Film Commission

Ms. Lee Lie YenDirector, Programme Review & Administration

Mr. Allan PhuaDirector, Punggol Creative Cluster Programme Office

Ms. Dorothy LaiDirector, Public Service Broadcast

Mr. Jason TanDirector, Operations

Ms. Evelyn GohDirector, Comms, Policy & Projects

Mr. David AlfredChief Counsel, Legal

5Designations reflected here are as of 31 March 2017.

SINGAPORE FILMS ON THE INTERNATIONAL STAGE

Singapore’s ICM talents were given a boost with almost 1,000 awards handed out by Minister of Communications and Information Dr. Yaacob Ibrahim to develop their potential in the field. These included 800 students who were admitted as the first intake in IMDA’s Industry Preparation for Pre-Graduates (iPREP) Programme. In addition, 160 SkillsFuture Study Awards were given out to support skills upgrading among ICM professionals. 33 IMDA scholarships were also presented to students to allow them to pursue ICT and media studies in polytechnics and universities.

MILESTONES& HIGHLIGHTS

A new keystone digital event, SMF Ignite made its maiden appearance at the Singapore Media Festival (SMF) 2016. The one-day event gave digital content creators the opportunity to learn, experience and create through interactive workshops and insightful conference tracks led by industry thought leaders. SMF 2016 also saw the debut of the Festival Square at CHIJMES. This hangout arena gave festival goers a special zone to network and unwind after attending screenings, conferences and meetings.

SPARKING THE MAGIC OF EXPERIENTIAL LEARNING

Singaporean filmmaker, Kirsten Tan3 made history when her debut film ‘Pop Aye’ won the World Cinema Dramatic Special Jury Award for Screenwriting at the prestigious Sundance Film Festival in January 2017. The win was a first for a Singapore film and filmmaker at the largest independent film festival in the United States. ‘Pop Aye’ also took the VPRO Big Screen Award at the International Film Festival Rotterdam in February 2017 – another first for Singapore films.

‘A Yellow Bird’ by K.Rajagopal1 was screened at the Busan International Film Festival (BIFF) in October 2016, while Boo Junfeng2 was conferred the Rising Director Award at BIFF. Boo’s ‘Apprentice’ also won the Network for the Promotion of Asia Pacific Cinema award at the Taipei Golden Horse Film Festival in November 2016 and was Singapore’s official entry to the Oscars the following year.

In December 2016, IMDA’s Media Education Scholarship recipient Alvin Lee, who is studying at the Beijing Film Academy, won the Best New Director award at the China Short Film Golden Hummingbird Awards for his short film, ‘Seed’.

1 Supported by IMDA’s New Talent Feature Grant.2 Supported by IMDA’s Production Assistance Grant, Development Assistance Grant, Film Mentorship Initiative Grant.3 Supported by IMDA’s New Talent Feature Grant, Development Assistance Grant, Film Mentorship Initiative Grant.

REALISING THE POTENTIAL OF OUR ICM TALENTS

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OCTOBER 2016

Organised by IMDA, the Data-Driven Innovation Challenge attracted 110 students from five institutes of higher learning who submitted 42 projects. The nine-month long competition challenged students to develop solutions, working prototypes and data visualisation using datasets, of which at least one dataset must be available on the Data-as-a-Service platform.

PROMOTING DATA INNOVATION AMONG YOUTHS

The four-part Mandarin series, ‘Your Personal Data, Our Responsibility’, was part of an overall media campaign by the Personal Data Protection Commission. It aims to highlight the importance of data protection to the industry, and show organisations, in particular SMEs, how a Data Protection Officer can play a role in helping to cultivate data protection at the workplace.

TELEVISION INFO-EDUCATIONAL SERIES ON PERSONAL DATA PROTECTION

IMDA led a delegation of 14 Singapore media companies on a fruitful journey to MIPCOM 2016, where the team presented more than 650 hours of Asian stories across 40 over titles. At MIPCOM 2016, IMDA also announced a year-long partnership with Discovery Networks Asia-Pacific. The partnership will see the co-creation of content between emerging and established production companies using advanced techniques and technologies and the upskilling of these production companies. These content will premiere on Discovery’s global platforms.

OVER 650 HOURS OF LOCAL CONTENT PRESENTED TO A GLOBAL AUDIENCE

MILESTONES& HIGHLIGHTS

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OCTOBER 2016

IMDA IMPOSES FINANCIAL PENALTY ON NETLINK TRUST

IMDA imposed a financial penalty of $500,000 on NetLink Trust (NLT) for not meeting the residential and non-residential Quality of Service (QoS) standards for service activation between January 2015 and June 2016. The decision took into consideration NLT’s previous QoS failures and the operational improvements made by NLT to raise its performance across the board.

To spur companies to explore a new light-based communication technology called Light Fidelity (Li-Fi), IMDA waived frequency fees for companies that intend to conduct Li-Fi trials.

MOVING AT LIGHT SPEED

The Digital TV and Silver IT Fest 2016 attracted close to 4,000 seniors and their family members at Bedok Mall. Seniors were able to learn about useful mobile apps on health, transport and government e-services at the learning islands, and explored the latest tech including Virtual Reality at the exhibition booths. Attendees also learnt about the 2G cessation and how to make the switch to 3G and Digital TV.

DIGITAL TV ANDSILVER IT FEST 2016

Machine learning and big data analytics technologies firms emerged as the big winners at National Infocomm Awards 2016, Singapore’s highest accolade for infocomm innovation. The biennial event is jointly organised by IMDA and the Singapore Infocomm Technology Federation. From 179 submissions, 16 organisations from the private and public sectors came out tops for embracing the spirit of innovation and excellence. They received the awards from Dr. Yaacob Ibrahim, Minister for Communications and Information.

MACHINE LEARNING AND BIG DATA ANALYTICS TECHNOLOGIES FIRMS ARE BIG WINNERS AT NATIONAL INFOCOMM AWARDS 2016

& HIGHLIGHTS

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NOVEMBER 2016

MILESTONES

A CELEBRATION OF ALL THINGS TECH AND MEDIA

The inaugural Infocomm Media Youth Festival at Suntec Convention Centre featured exhibitions, career talks, workshops and competitions. Visitors were able to experience augmented and virtual reality, make life-size 3D paintings, fly drones, and try their hands on radio and television news presenting. The festival aimed to increase awareness among local youths of the career opportunities in the infocomm media sector. Guest-of-honour, Mr. Chee Hong Tat, Minister of State for Communications and Information, also presented awards to three Computing teachers, in recognition of their innovative teaching methods.

IMDA and Singapore Press Holdings joined hands to produce short form digital video content in both English and Mandarin. The content will be distributed on SPH’s multimedia platforms as part of a pilot Public Service Broadcast initiative.

SPH INKS DIGITAL CONTENT PARTNERSHIP WITH IMDA

The Singapore Film Commission (SFC) partnered with Viddsee, a home-grown video streaming platform specialising in the curation and dissemination of short films from Asia, to launch a Singapore Film Channel that showcased 30 Singapore short films by up-and-coming student filmmakers and other notable independent filmmakers including Kirsten Tan and Leon Cheo. As part of the collaboration with the SFC, Viddsee commissioned its first original short film in May 2017, entitled ‘Time’ by director Daniel Yam.

NEW CHANNEL LAUNCHED TO SHOWCASE LOCAL SHORT FILMS

After reviewing the Expression of Interest Documents submitted by airYotta Pte Ltd, MyRepublic Limited and TPG Telecom Pte Ltd, IMDA pre-qualified MyRepublic Limited and TPG Telecom Pte Ltd to participate in the NESA .

IMDA PRE-QUALIFIES TWO COMPANIES FOR NEW ENTRANT SPECTRUM AUCTION (NESA)

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& HIGHLIGHTSNOVEMBER 2016

MILESTONES

CREATING FILMS INSPIRED BY ART

The Singapore Film Commission (SFC) supported the National Gallery Singapore on a first-ever collaboration involving five award-winning ASEAN film directors – Apichatpong Weerasethakul (Thailand), Brillante Mendoza (Philippines), Eric Khoo (Singapore), Ho Yuhang (Malaysia) and Joko Anwar (Indonesia) – to celebrate Southeast Asian art through film. Titled ‘Art Through Our Eyes’, the directors each selected a masterpiece from the Gallery’s Southeast Asian collection which would serve as inspiration for their original short films. The films were later compiled into an omnibus and had its world premiere at the Busan International Film Festival in October 2016 and was screened at the Singapore International Film Festival on 24 November 2016.

IMDA opened the doors to PIXEL Studios, the first facility in Singapore dedicated to helping the next generation of digital content creators and media professionals explore innovative ways to create content and tell compelling stories. Housed in 25,000 square feet of space in one-north, PIXEL Studios is one of IMDA’s PIXEL (Promising Innovation and Experiential Learning) spaces.

IMDA OPENS PIXEL STUDIOS

IMDA released its Urban Logistics Technology Roadmap for 2020 to help local firms take innovative leaps in significantly improving their domestic logistics processes. The roadmap will see the testing and implementing of new technologies to enable greater supply chain efficiencies in Singapore’s logistics and retail sectors. Under the roadmap, the Urban Logistics programme will be further rolled out to 12 additional Singapore retail malls in 2017.

IMDA UNVEILS URBAN LOGISTICS TECHNOLOGY ROADMAP

IMDA imposed a combined financial penalty of $145,000 on SingNet for two separate disruptions to Singtel TV broadcasts that occurred on 1 October 2015 and 5 January 2016. In determining the quantum of the respective financial penalties, IMDA had considered factors such as SingNet’s response to the incidents, the extent of the disruptions and SingNet’s track record.

IMDA IMPOSES FINANCIAL PENALTY ON SINGNET FOR PAY-TV SERVICE DISRUPTIONS

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& HIGHLIGHTSNOVEMBER/DECEMBER 2016

MILESTONES

ASIAN STORIES UNDER THE SPOTLIGHT

Singapore companies and content were prominently represented at Asian Television Forum and Market 2016 with 65 local media companies exhibiting their latest offerings. This comprised over 700 hours of compelling Asian stories across more than 50 film and television titles of various genres.

IMDA conducted the NESA between 13 and 14 December 2016. TPG Telecom Pte Ltd made the winning bid of $105 million, and was provisionally awarded 60 MHz of spectrum available in the NESA.

4TH MOBILE NETWORK OPERATOR – TPG – WILL ENTER THE MARKET

In view of the impending closure of the 2G mobile networks by mobile network operators from 1 April 2017, IMDA de-registered 2G-only mobile devices for sale and use in Singapore from 1 January 2017.

CEASE OF 2G DEVICES FOR LOCAL USE – A STEP CLOSER TO 2G NETWORK CLOSURE

Production has began on HBO Asia’s first original comedy drama series, ‘SENT’. Filmed in Singapore and directed and co-produced by Singaporean comedian Alaric Tay, ‘SENT’ will air exclusively on HBO Asia’s on-air, online and on-demand platforms in 2017.

ACTION, CAMERA, LAUGHTER!

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& HIGHLIGHTSDECEMBER 2016

MILESTONES

A NEW CHAPTER IN ASIAN STORYTELLING

Singapore Media Festival (SMF) 2016 celebrated the best of Asian storytelling. The event drew over 20,000 media and creative professionals, industry thought leaders, and fans of television and film from around the world. Hosted by IMDA, SMF 2016 featured conferences, labs, trade markets, screenings and award ceremonies, as well as the keystone digital event, SMF Ignite. It also starred established events such as the Asia TV Forum & Market, ScreenSingapore, Asian Television Awards and Singapore International Film Festival.

The annual Silver IT Fest Roadshow travelled to Jurong Point to encourage seniors to learn IT. Seniors and families explored interesting exhibition booths, learnt about useful mobile apps at the learning islands and could even sign up for IT classes on-the-spot. Over 3,400 participants attended the weekend of tech festivities.

SPURRING LIFELONG LEARNING AT THE SILVER IT FEST

Virtual reality technology and content production company Hiverlab, environmental consultant and water environment expert DHI Water & Environment and IMDA’s PIXEL Labs joined hands to produce a unique interactive training tool, Eyes on Habitat: Coral Reefs. The tool constructs a virtual underwater environment based on the coral reefs at the Sisters’ Islands Marine Park. The simulation allows marine biologists and reef monitoring volunteers to learn how to assess and monitor coral reefs, orientate themselves on monitoring protocols and practise their identification skills in a virtual setting before they embark on actual dives.

DIVING INTO VIRTUAL REALITY

The Personal Data Protection Commission and Cyber Security Agency of Singapore released the second issue of their student activity book, ‘Cyber Safety’. This series supports the Ministry of Education’s Cyber Wellness programme by highlighting the different aspects of cyber wellness, online security, wireless security and online personal data protection. A total of 42,000 copies of this issue were distributed to all primary five students in Singapore.

DRIVING HOME THE IMPORTANCE OF CYBER SAFETY

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& HIGHLIGHTSJANUARY TO FEBRUARY 2017

MILESTONES

TACKLING CYBER WELLNESS ISSUES WITH THE BETTER INTERNET CAMPAIGN

The annual Better Internet campaign took place this year on 7 February with the tagline, “Do What’s Right Online, Be the Change for a Better Internet”. The campaign leveraged on current cyber-wellness issues such as cyber-bullying, discernment and excessive screen time, to promote positive online behaviour. As part of the campaign, a series of social experiments based on cyber-wellness issues were conducted to generate conversation and reflection on these issues. Real-life stories from a diverse range of individuals who have personally experienced cyber-wellness issues were also shared at the campaign website which resonated strongly with the public.

INJECTING MORE DIVERSITY INTO SINGAPORE’S RADIO SCENE

IMDA awarded two radio frequencies – FM89.3 and FM96.3 – to SPH Radio Pte Ltd, paving the way for two new commercial free-to-air radio stations. Singaporeans can look forward to a new Chinese radio station for seniors above 50 years of age and a new English radio station aimed at raising financial literacy of listeners.

IMDA pre-qualified four parties – M1 Limited, Singtel Mobile Singapore Pte Ltd, StarHub Mobile Pte Ltd and TPG Telecom Pte Ltd – to participate in the General Spectrum Auction (GSA). The Quantity Stage of the GSA was conducted between 30 March 2017 and 4 April 2017, with all four parties provisionally awarded a total of 175 MHz of spectrum available in the GSA, for total winning bids amounting to approximately $1.14 billion.

IMDA SUCCESSFULLY ISSUES MORE SPECTRUM FOR 4G

IMDA imposed a financial penalty of $7,000 on SPH Radio Pte Ltd. The station’s deejays had caused offence to some listeners with remarks which stereotyped certain races while discussing a study on sleep patterns. Following investigations, IMDA found Kiss 92FM to be in breach of the Free-To-Air Radio Programme Code.

IMDA IMPOSES FINANCIAL PENALTY ON SPH RADIO FOR BREACHING CODE OF PRACTICE

Over 1,500 seniors attended the Mass IT Classes held at the ITE College West with topics ranging from using a smart phone, to basic computing skills, digital lifestyle, government digital services, social media and many more. The IT Classes also involved about 130 volunteers from the Friends of Silver Infocomm, who helped guide seniors through their learning journeys.

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& HIGHLIGHTSMARCH 2017

MILESTONES

HANDS ON TRAINING FOR ‘SILVER SURFERS’

INFO-COMMUNICATION MEDIA DEVELOPMENT AUTHORITY

AND ITS SUBSIDIARYCONSOLIDATED ANNUAL REPORT

Period from 1 October 2016 (date of establishment) to 31 March 2017

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23 August 2017

STATEMENT BY INFO-COMMUNICATIONS MEDIA DEVELOPMENT AUTHORITY

In our opinion:

(a) theaccompanyingfinancialstatementsofInfo-communicationsMediaDevelopmentAuthority(the“Authority”)andits subsidiary(the“Group”)assetoutonpagesFS1toFS45aredrawnupinaccordancewiththeprovisionsoftheInfo- communicationsMediaDevelopmentAuthorityAct(No.22of2016)(the“Group”)andStatutoryBoardFinancialReporting Standardssoastopresentfairly,inallmaterialrespects,thestateofaffairsoftheGroupandoftheAuthorityasat31 March2017andtheresultsandchangesinequityoftheGroupandoftheAuthority,andcashflowsoftheGroupforthe period from 1 October 2016 (date of establishment) to 31 March 2017; and

(b) properaccountingandotherrecordshavebeenkept,includingrecordsofallassetsoftheGroupwhetherpurchased, donatedorotherwise;and

(c) thereceipts,expenditureandinvestmentofmoneysandtheacquisitionanddisposalofassetsbytheAuthorityduringthe financialperiodhavebeeninaccordancewiththeprovisionsoftheAct.

The Board of the Info-communicationsMediaDevelopmentAuthority has, on the date of this statement, authorised thesefinancialstatementsforissue.

OnbehalfoftheBoard

Chan Yeng KitChairman

Tan Kiat HowChief Executive Officer

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INDEPENDENT AUDITORS’ REPORT

MEMBERSOFINFO-COMMUNICATIONSMEDIADEVELOPMENTAUTHORITYINFO-COMMUNICATIONSMEDIADEVELOPMENTAUTHORITY

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Info-communications Media Development Authority (the “Authority”) and itssubsidiary(the“Group”),whichcomprisetheconsolidatedstatementsoffinancialpositionoftheGroupandthestatementoffinancialpositionoftheAuthorityasat31March2017,theconsolidatedstatementsofcomprehensiveincomeandconsolidatedstatementsofchangesinequityoftheGroupandthestatementofcomprehensiveincomeandstatementofchangesinequityoftheAuthorityandtheconsolidatedstatementofcashflowsoftheGroupforthe6-monthsperiodfrom1October2016(dateofestablishment)to31March2017,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpolicies,setoutonpagesFS1toFS45.

In our opinion, the accompanying consolidated financial statements of theGroup and the statements of financial position,statementofcomprehensiveincomeandstatementofchangesinequityoftheAuthorityareproperlydrawnupinaccordancewith theprovisionsof the Info-communicationsMediaDevelopmentAuthorityAct (the“Act”)andStatutoryBoardFinancialReportingStandardssoastopresentfairly,inallmaterialrespects,thestateofaffairsoftheGroupandtheAuthorityasat31March2017andtheresultsandchangesinequityoftheGroupandtheAuthorityandcashflowsoftheGroupfortheperiodfrom1October2016to31March2017.

Basis for opinion

WeconductedourauditinaccordancewithSingaporeStandardsonAuditing(SSAs).Ourresponsibilitiesunderthosestandardsare furtherdescribed in theAuditors’ responsibilities for theauditof thefinancial statements’ sectionofour report.Weareindependent of theAuthority in accordancewith theAccounting andCorporateRegulatoryAuthorityCodeof ProfessionalConductandEthicsforPublicAccountantsandAccountingEntities(ACRACode)togetherwiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsinSingapore,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheACRACode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Other information

Managementisresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedintheannualreport,butdoesnotincludethefinancialstatementsandourauditors’reportthereon.

WehaveobtainedtheStatementbyInfo-communicationsMediaDevelopmentAuthoritypriortothedateofthisauditors’report.TheChairman’sMessage,Highlights,KeyPerformanceIndicatorsandPerformanceforPublicServiceBroadcastProgrammes(‘theReports’)areexpectedtobemadeavailabletousafterthatdate.

Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwewillnotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditof thefinancialstatements,our responsibility is toreadtheother informationand, indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.

WhenwereadtheReports,ifweconcludethatthereisamaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargedwithgovernanceandtakeappropriateactionsinaccordancewithSSAs.

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Responsibilities of management for the financial statements

Managementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeprovisionsof the Act and Statutory Board Financial Reporting Standards, and for such internal control asmanagement determines isnecessary toenable thepreparationof financial statements that are free frommaterialmisstatement,whetherdue to fraud orerror.

AstatutoryboardisconstitutedbasedonitsActanditsdissolutionrequiresParliament’sapproval. Inpreparingthefinancialstatements,management is responsible for assessing the Authority’s ability to continue as a going concern, disclosing, asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthereisintentiontowinduptheAuthorityorfortheAuthoritytoceaseoperations.

TheAuditandRiskCommitteeisresponsibleforoverseeingtheGroup’sfinancialreportingprocess.

Auditors’ responsibilities for the audit of the financial statements

Ourobjectivesare toobtain reasonableassuranceaboutwhether thefinancialstatementsasawholeare free frommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditors’reportthatincludesouropinion.Reasonableassuranceis a high level of assurance, but is not a guarantee that an audit conducted in accordancewith SSAswill always detect amaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthese financialstatements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintainprofessional scepticism throughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designand performauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovide a basis for our opinion. The risk of not detecting amaterialmisstatement resulting from fraud is higher than for one resultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideof internalcontrols.

• Obtainanunderstandingofinternalcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriate inthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup’sinternalcontrols.

• Evaluate theappropriatenessofaccountingpoliciesusedand the reasonablenessofaccountingestimatesand related disclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheaudit evidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubt ontheGroup’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredto draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodifyouropinion.Our conclusions arebasedon the audit evidenceobtainedup to thedateofour auditors’report.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.

• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhether thefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithin theGrouptoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervision andperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion. WecommunicatewiththeAuditandRiskCommitteeregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolsthatweidentifyduringouraudit.

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REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Opinion

In our opinion:

(a) thereceipts,expenditure, investmentofmoneysandtheacquisitionanddisposalofassetsbytheAuthorityduringthe 6monthsperiodare,inallmaterialrespects,inaccordancewiththeprovisionsoftheAct.

(b) properaccountingandotherrecordshavebeenkept,includingrecordsofallassetsoftheAuthorityandofthesubsidiary incorporatedinSingaporeofwhichwearetheauditorswhetherpurchased,donatedorotherwise.

Basis for Opinion

WeconductedourauditinaccordancewithSSAs.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditors’ResponsibilitiesfortheComplianceAuditsectionofourreport.WeareindependentoftheBoardinaccordancewiththeACRACodetogetherwiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsinSingapore,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheACRACode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropiniononmanagement’scompliance.

Responsibilities of Management for Compliance with Legal and Regulatory Requirements

Managementisresponsibleforensuringthatthereceipts,expenditure,investmentofmoneysandtheacquisitionanddisposalofassets,areinaccordancewiththeprovisionsoftheAct.ThisresponsibilityincludesimplementingaccountingandinternalcontrolsasmanagementdeterminesarenecessarytoenablecompliancewiththeprovisionsoftheAct.

Auditors’ Responsibilities for the Compliance Audit

Our responsibility is to express an opinion on management’s compliance based on our audit of the financial statements.Weplannedandperformed thecomplianceaudit toobtain reasonableassuranceaboutwhether the receipts, expenditure,investmentofmoneysandtheacquisitionanddisposalofassets,areinaccordancewiththeprovisionsoftheAct.

Ourcomplianceauditincludesobtaininganunderstandingoftheinternalcontrolrelevanttothereceipts,expenditure,investmentofmoneysandtheacquisitionanddisposalofassets;andassessingtherisksofmaterialmisstatementofthefinancialstatementsfromnon-compliance,ifany,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Becauseoftheinherentlimitationsinanyaccountingandinternalcontrolsystem,non-compliancesmayneverthelessoccurandnotbedetected.

KPMG LLPPublic Accountants andChartered Accountants

Singapore23 August 2017


STATEMENTS OF FINANCIAL POSITIONAs at 31 March 2017

Group Authority Note 2017 2017 $’000 $’000Assets Property,plantandequipment 4 6,475 5,702Intangibleassets 5 6,503 6,503Subsidiary 6 – 3,813Deferredexpenditure 2,227 2,227Available-for-salefinancialassets 7 763 763Financialassetsatfairvaluethroughprofitorloss 9 122,551 122,551Non-current assets 138,519 141,559 Tradeandotherreceivables 10 161,854 161,694Amountduefromasubsidiary – 700Cashandcashequivalents 8 1,121,480 1,109,283Deferredexpenditure 1,268 1,268Current assets 1,284,602 1,272,945 Total assets 1,423,121 1,414,504 Equity Sharecapital 11 1,201 1,201Capitalaccount 12 635,650 622,457Fairvaluereserve 452 452Accumulateddeficits (18,587) (19,542)Totalequity 618,716 604,568 Liabilities Deferredincome 15 480,285 479,895Amountduetoasubsidiary – 10,000Deferredcapitalgrants 17 10,180 10,180Otherdeferredgrants 18 311 311Provisionforpensionandmedicalbenefits 13 36,826 36,826Provisionforex-gratia 170 170Provisionforreinstatementofproperty,plantandequipment 2,188 2,188Deferredtaxliabilities 166 –Non-current liabilities 530,126 539,570 Deferredincome 15 115,640 112,723Tradeandotherpayables 14 110,395 109,446Grantsreceivedinadvance 16 44,245 44,245Provisionforpensionandmedicalbenefits 13 3,952 3,952Incometaxpayable 47 –Current liabilities 274,279 270,366 Total liabilities 804,405 809,936Total equity and liabilities 1,423,121 1,414,504 Net assets of trust and agency funds 19 90,707 90,707

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Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

STATEMENTS OF COMPREHENSIVE INCOMEPeriod from 1 October 2016 (date of establishment) to 31 March 2017

Group Authority 1 October 2016 1 October 2016 (date of establishment) (date of establishment) to 31 March 2017 to 31 March 2017

General Restricted General Restricted Note Fund Funds Total Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000Income Licenceandfrequencyfees 71,492 – 71,492 71,492 – 71,492Servicefees 2,482 – 2,482 - – -Revenuefromcompletedfilms 3,144 – 3,144 3,144 – 3,144Interestincome 5,376 – 5,376 5,376 – 5,376Otherincome 20 1,349 – 1,349 1,406 – 1,406 83,843 – 83,843 81,418 – 81,418Gainondivestmentoffinancialassets available-for-sale 1,682 – 1,682 1,682 – 1,682Netlossonfinancialassetsatfairvalue throughprofitorloss 21 (2,353) – (2,353) (2,353) – (2,353) Expenses Employeecompensation 22 (59,183) (58) (59,241) (58,295) (58) (58,353)Professionalandconsultancyfees (8,481) (17) (8,498) (8,421) (17) (8,438)Outreach,eventsandpublicityexpenses (7,153) (277) (7,430) (7,145) (277) (7,422)ITexpenses (15,347) (13) (15,360) (15,125) (13) (15,138)IrrecoverableGST (2,024) – (2,024) (2,024) – (2,024)Otherexpenses (4,631) (93) (4,724) (4,763) (93) (4,856)Generalandadministrativeexpenses (4,829) (215) (5,044) (4,725) (215) (4,940)Rentalexpenses (4,691) (375) (5,066) (4,691) (375) (5,066)Stafftraining (1,043) – (1,043) (1,043) – (1,043)Depreciationand amortisationexpenses 4and5 (3,233) (505) (3,738) (3,033) (505) (3,538)Totaloperatingexpenditure (110,615) (1,553) (112,168) (109,265) (1,553) (110,818) Developmentexpenses 23 (20,968) (32,217) (53,185) (20,968) (32,217) (53,185) Deficit before grants carried forward (48,411) (33,770) (82,181) (49,486) (33,770) (83,256)

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Group Authority 1 October 2016 1 October 2016 (date of establishment) (date of establishment) to 31 March 2017 to 31 March 2017

General Restricted General Restricted Note Fund Funds Total Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000

Deficitbeforegrantsbroughtforward (48,411) (33,770) (82,181) (49,486) (33,770) (83,256) Government grants Governmentgrants 16 25,844 33,172 59,016 25,844 33,172 59,016Deferredcapitalgrantsamortised 17 1,554 598 2,152 1,554 598 2,152 Totalgovernmentgrants 27,398 33,770 61,168 27,398 33,770 61,168 Net deficit before contribution to consolidated fund and tax (21,013) – (21,013) (22,088) – (22,088) Taxexpenses (120) – (120) – – – Net deficit for the period (21,133) – (21,133) (22,088) – (22,088) Other comprehensive income Items that will not be reclassified to income or expenditure Actuarialgainrecognisedonprovision forpensionandmedicalbenefits 13 2,546 – 2,546 2,546 – 2,546 Items that are or may be reclassified subsequently to income or expenditure Netchangeinfairvalueoffinancialassets available-for-salereclassifiedto incomeorexpenditure – (1,682) (1,682) – (1,682) (1,682) Totalothercomprehensiveincome 2,546 (1,682) 864 2,546 (1,682) 864 Total comprehensive income (18,587) (1,682) (20,269) (19,542) (1,682) (21,224)

STATEMENTS OF COMPREHENSIVE INCOME (CONT’D)Period from 1 October 2016 (date of establishment) to 31 March 2017

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CONSOLIDATED STATEMENT OF CASH FLOWSPeriod from 1 October 2016 (date of establishment) to 31 March 2017

Group 1 October 2016 (date of establishment) Note to 31 March 2017 $’000 Cash flows from operating activities Deficitbeforegrants (82,181)Adjustments for: Depreciationandamortisationexpense 4and5 3,738Gainondivestmentoffinancialassetsavailable-for-sale (1,682)Lossonfinancialassetsatfairvaluethroughprofitorloss 21 2,353Lossondisposalofproperty,plantandequipment 123Amortisationofdeferredexpenditureintheincomeandexpenditure 634Allowanceforimpairmentfortradeandotherreceivables 128Amortisationofdeferredincomeintheincomeandexpenditure (205,307) (282,194)Changesin: -tradeandotherreceivables 246,300 -tradeandotherpayables 45,935 -deferredexpenditure (976) -deferredincome 327,693 -provisionforreinstatementofproperty,plantandequipment (756) -provisionforpensionandmedicalbenefits 427 -provisionforex-gratia 170Cashgeneratedfromoperations 336,599Taxpaid (10)Paymentofpensionandmedicalbenefits 13 (2,075)Net cash from operating activities 334,514 Cash flows from investing activities Purchasesofproperty,plantandequipment 4 (3,916)Purchasesofintangibleassets 5 (4,072)Proceedsfromsaleofproperty,plantandequipment 142Repaymentfromfinancialassetsavailable-for-sale 2,335Purchases of unit trusts (11)Proceedsfromdivestmentofunittrusts 517,225Interestreceived 2,550Net cash from investing activities 514,253 Cash flows from financing activity Governmentgrantsreceived 16 77,161Net cash from financing activity 77,161 Net increase in cash and cash equivalents 925,928CashandcashequivalentsatbeginningoftheperiodtransferredfromMDAandIDA 195,552Cash and cash equivalents at end of the period 8 1,121,480

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Thesenotesformanintegralpartofandshouldbereadinconjunctionwiththeaccompanyingfinancialstatements.ThefinancialstatementswereauthorisedforissuebytheBoardon[dateofsigning].

1 DOMICILE AND ACTIVITIES

Info-communications Media Development Authority (the “Authority”), a statutory board under the Ministry of CommunicationsandInformation(“MCI”),wasestablishedinTheRepublicofSingaporeundertheInfo-communications MediaDevelopmentAuthorityAct(No.22of2016)on1October2016.

TheestablishmentoftheAuthoritywasbywayofrestructuringofMediaDevelopmentAuthorityofSingapore(“MDA”)and Info-communications Development Authority of Singapore (“IDA”) to form Info-communications Media Development Authority(“IMDA”)andGovernmentTechnologyAgency.

PursuanttoPart9oftheInfo-communicationsMediaDevelopmentAuthorityAct(No.22of2016),allthebusinessand undertakingsandallrightsandobligationsoftheMDAandbusinessandundertakingsandrightsandobligationsofcertain divisionsof IDAweretransferredandvested intheAuthorityon1October2016.Onthedateofestablishmentof the Authority, theassets, liabilitiesandsharecapitalofMDAandtheassetsand liabilitiesofcertaindivisionsof IDAwere transferredtotheAuthorityattheirbookvalue,withacorrespondingamountcreditedtocapitalaccount.

Asastatutoryboard,theAuthorityissubjectedtothecontrolofitssupervisoryMinistry,MCI,andisrequiredtofollowthe policiesandinstructionsissuedfromtimetotimebyMCIandothergovernmentministriesanddepartmentssuchasthe MinistryofFinance(“MOF”).

TheregisteredofficeandprincipalplaceofoperationsoftheAuthorityislocatedat3FusionopolisWay,#16-22,Symbiosis, Singapore138633.

TheAuthorityhasthefollowingfunctions:

(a) to promote the efficiency, competitiveness (including internationally) and development of the information, communicationsandmediaindustryinSingapore;

(b) topromoteandmaintainfairandefficientmarketconductandeffectivecompetitionbetweenpersonsengagedin commercialactivitiesinconnectionwithmediaservicesortelecommunicationsystemsandservicesinSingaporeor, intheabsenceofacompetitivemarket,topreventthemisuseofmonopolyormarketpower;

(c) toregulatetheprovisionanduseoftelecommunicationsystems,andequipmentandsoftwareinconnectionwithsuch systems,andtelecommunicationservices,inSingapore,includingby—

(i) ensuringthattelecommunicationservicesarereasonablyaccessibletoallpersonsinSingaporeandaresupplied asefficientlyandeconomicallyaspracticableandatperformancestandards that reasonablymeet thesocial, industrialandcommercialneedsofSingapore;and

(ii) determiningorapprovingprices,tariffsandchargesfortheprovisionoftelecommunicationsystemsandservices;

NOTES TO THE FINANCIAL STATEMENTSAs at 31 March 2017

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1 DOMICILE AND ACTIVITIES (CONT’D)

(d) to regulate the provision and use of media services, and equipment and facilities used in connection with mediaservices,inSingapore,includingby—

(i) facilitatingtheprovisionofanadequaterangeofmediaservicesthatservestheinterestsofthegeneralpublic;

(ii) ensuringthatmediaservicesareprovidedatahighstandardinallrespects,particularlyinrespectofthequality, balance and range of subject matter of their content; and

(iii) ensuringthatthecontentofmediaservicesisnotagainstpublicinterest,publicorderornationalharmony,anddoes not offend against good taste or decency;

(e) topromotetheuseoftheInternetandelectroniccommerceinSingaporeandtoestablishregulatoryframeworksfor that purpose;

(f) toregulateandmanagedomainnamesofInternetwebsitesinSingapore;

(g) topromotetheuseofinformationandcommunicationstechnologyinSingaporeand,wherenecessary,tocollaborate withtheGovernmentTechnologyAgency(establishedbysection3oftheGovernmentTechnologyAgencyAct2016) in respect of that;

(h) topromote,wheresuitable,self-regulationintheinformation,communicationsandmediaindustryinSingapore;

(i) toadvisetheGovernmentonmattersrelatingtotheinformation,communicationsandmediaindustryandthe functions of the Authority;

(j) torepresentSingaporeandadvanceSingapore’sinterestinternationallyinmattersrelatingtotheinformation, communications and media industry;

(k) topromoteresearchanddevelopmentintotechnologicalmattersrelatingtotheinformation,communicationsand media industry;

(l) topromoteandsetstandardsforthetraining,andtheupgradingofthecompetencies,ofpersonsforthepurposesofthe information,communicationsandmediaindustryinSingapore;

(m) to provide consultancy services in or outside Singapore relating to the information, communications and media industry;

(n) toperformsuchotherfunctionsasmaybeconferredontheAuthoritybyanyotherAct,includingbeingdesignated as the Personal Data Protection Commission responsible for the administration of the Personal Data Protection Act2012.

2 BASIS OF PREPARATION

2.1 Statements of compliance

The financial statements have been prepared in accordance with the provisions of the Info-communications MediaDevelopmentAuthorityAct(No.22of2016)andStatutoryBoardFinancialReportingStandards(“SB-FRS”), including Interpretations of SB-FRS (“INT SB-FRS”) and SB-FRS Guidance Notes as promulgated by the Accountant-General.

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2 BASIS OF PREPARATION(CONT’D)

2.2 Basis of measurement

The financial statements have been prepared on the historical cost basis except as otherwise described in the notesbelow.

2.3 Functional and presentation currency

ThesefinancialstatementsarepresentedinSingaporedollars,whichistheAuthority’sfunctionalcurrency.Allfinancial informationpresentedinSingaporedollarshavebeenroundedtothenearestthousand,unlessotherwisestated.

2.4 Use of estimates and judgements

The preparation of financial statements in conformity with SB-FRSs requiresmanagement tomake judgements, estimatesandassumptionsthataffect theapplicationofaccountingpoliciesandthereportedamountsofassets, liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.

Estimatesandunderlyingassumptionsare reviewedonanongoingbasis. Revisions toaccountingestimatesare recognisedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.

Informationaboutcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamounts recognisedinthefinancialstatementsrelatetotheclassificationofinvestmentsatfairvaluethroughprofitorlossand available-for-saleinvestments,andaredisclosedinnote3.3.

Informationaboutassumptionsandestimationuncertaintiesthathaveasignificantriskofresultinginamaterialadjustment withinthenextfinancialperiodareasfollows:

Provision for pension and medical benefits

Provision forpensionandmedicalbenefits is estimatedbymanagementbasedon themost recent valuationby professionalactuaries.Changestoassumptionsandestimatesusedinthevaluationwouldresultinchangestothe provisionforpensionandmedicalbenefitsamountsestimated.

Valuation of investments

Thedeterminationoffairvalueforfinancialassetsforwhichtherearenoobservablemarketpricerequirestheuseof valuationtechniquesasdescribedinnote28.Forfinancialinstrumentsthattradeinfrequentlyandhavelittleprice transparency,fairvalueislessobjectiveandrequiresvaryingdegreesofjudgementdependingonliquidity,concentration, uncertaintyofmarketfactors,pricingassumptionsandotherrisksaffectingthespecificinstrument.

Deferred benefits on contribution to Consolidated Fund

Deferred benefits have not been recognised on unutilised deficits carried forward as the Authority expects to continuetobeinoperatingdeficit,excludinganyinvestmentincomeandfairvaluegainsorlossesfromitsfinancial assets held at fair value throughprofit or loss.Managementbelieves that theprobability of utilising the carried forwarddeficitsisdependentonmarketperformanceanddoesnotexpectsignificantgainsinitsinvestmentsand financial assets held at fair value through profit or loss to fully offset the unutilised deficits. Accordingly, the AuthorityhasnotrecognisedanydeferredbenefitsforcontributiontoConsolidatedFund.

Licence fees

Licencefeesarebilledinadvancebasedonapercentageofthelicencees’totalqualifyingincomeorannualgross turnover.Thelicencefeesarerecognisedevenlyoverthelicenceperiodandaresubsequentlyadjustedbasedonthe latestavailableinformation.Changestotheestimatesusedinthedeterminationoflicencefeewouldresultinchanges tothelicencefeerevenuerecognisedforthefinancialperiod.


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2 BASIS OF PREPARATION(CONT’D)

2.5 Changes in accounting policies

On1October2016,theGrouphasadoptedallthenewandrevisedSB-FRSs,INTSB-FRSsandGuidanceNotesthat aremandatory for application on that date. The adoption of these new or revised SB-FRSs, INT SB-FRSs and GuidanceNotesdoesnothaveanysignificantimpactonthefinancialstatements.

3 SIGNIFICANT ACCOUNTING POLICIES

Theaccountingpoliciessetoutbelowhavebeenappliedconsistentlytotheperiodpresentedinthesefinancialstatements, exceptasexplainedinnote2.5,whichaddressesthechangesinaccountingpolicies.

3.1 Basis of consolidation

Subsidiaries

SubsidiariesareentitiescontrolledbytheGroup.TheGroupcontrolsanentitywhenitisexposedto,orhasrights to,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerover theentity.Thefinancialstatementsofthesubsidiaryareincludedintheconsolidatedfinancialstatementsfromthedate thatcontrolcommencesuntilthedatethatcontrolceases.

Theaccountingpoliciesofsubsidiaryhavebeenchangedwhennecessarytoalignthemwiththepoliciesadoptedby theGroup. Transactions eliminated on consolidation

Intra-groupbalancesandtransactions,andanyunrealisedincomeandexpensesarisingfromintra-grouptransactions, areeliminatedinpreparingtheconsolidatedfinancialstatements.

3.2 Foreign currency

Foreigncurrency transactions

TransactionsinforeigncurrenciesaretranslatedtothefunctionalcurrenciesoftheGroupentitiesatexchangerates atthedatesofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthereportingdate aretranslatedtothefunctionalcurrencyattheexchangerateatthatdate.Theforeigncurrencygainorlossonmonetary itemsisthedifferencebetweenamortisedcostinthefunctionalcurrencyatthebeginningoftheperiod,adjustedfor effectiveinterestandpaymentsduringtheperiod,andtheamortisedcostinforeigncurrencytranslatedattheexchange rateattheendoftheperiod.

Non-monetaryassetsandliabilitiesdenominatedinforeigncurrenciesthataremeasuredatfairvaluearetranslatedto thefunctionalcurrencyattheexchangerateatthedatethatthefairvaluewasdetermined.Non-monetaryitemsina foreigncurrencythataremeasuredintermsofhistoricalcostaretranslatedusingtheexchangerateatthedateof thetransaction.Foreigncurrencydifferencesarisingontranslationarerecognisedinincomeorexpenditure,except forthefollowingdifferenceswhicharerecognisedinothercomprehensiveincomearisingonthetranslationofavailable- for-saleequityinstruments(exceptonimpairmentinwhichcaseforeigncurrencydifferencesthathavebeenrecognised inothercomprehensiveincomearereclassifiedtoincomeorexpenditure).


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3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

3.3 Financial instruments

(i) Non-derivativefinancialassets

TheGroupinitiallyrecognisesloansandreceivablesonthedatethattheyareoriginated.Allotherfinancialassets (includingassetsdesignatedatfairvaluethroughprofitorloss)arerecognisedinitiallyonthetradedate,whichis thedatethattheGroupbecomesapartytothecontractualprovisionsoftheinstrument.

TheGroupderecognisesafinancialassetwhenthecontractualrightstothecashflowsfromtheassetexpire,orit transferstherightstoreceivethecontractualcashflowsonthefinancialassetinatransactioninwhichsubstantially all the risksand rewardsofownershipof thefinancialassetare transferred,or itneither transfersnor retains substantiallyalloftherisksandrewardsofownershipanddoesnotretaincontroloverthetransferredasset.Any interestintransferredfinancialassetsthatiscreatedorretainedbytheGroupisrecognisedasaseparateasset orliability.

Financialassetsandliabilitiesareoffsetandthenetamountpresentedinthestatementsoffinancialpositionwhen, andonlywhen,theGrouphasalegalrighttooffsettheamountsandintendseithertosettleonanetbasisorto realisetheassetandsettletheliabilitysimultaneously.

TheGroupclassifiesnon-derivativefinancialassets into the followingcategories:financialassetsat fair value throughprofitorloss,loansandreceivablesandavailable-for-salefinancialassets.

Financial assets at fair value through profit or loss

A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designatedassuchuponinitialrecognition.Financialassetsaredesignatedatfairvaluethroughprofitorlossif theGroupmanagesandevaluatestheperformanceofsuchinvestmentsbasedontheirfairvalueinaccordance with the Group’s documented risk management or investment strategy. Attributable transaction costs are recognisedinincomeorexpenditureasincurred.Financialassetsatfairvaluethroughprofitorlossaremeasured at fair value, andchanges therein,which takes intoaccount anydividend income, are recognised in income andexpenditure.

Financialassetsdesignatedatfairvaluethroughprofitorlosscompriseunittrusts.

Loans and receivables

Loansandreceivablesarefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactive market.Suchassetsareinitiallymeasuredatfairvalueplusanydirectlyattributabletransactioncosts.Subsequent toinitialrecognition,loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethod,less anyimpairmentlosses.

Loansandreceivablescomprisecashandcashequivalents,tradeandotherreceivables(excludingprepayments) andamountduefromasubsidiary.


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3.3 Financial instruments (Cont’d)

(i) Non-derivativefinancialassets(Cont’d)

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and cash held with Accountant-General’s Department(“AGD”).

Available-for-sale financial assets

Available-for-salefinancialassetsarenon-derivativefinancialassetsthataredesignatedasavailableforsaleor arenotclassifiedinanyoftheabovecategoriesoffinancialassets.Available-for-salefinancialassetsareinitially measuredatfairvalueplusanydirectlyattributabletransactioncosts.Subsequenttoinitialrecognition,theyare measuredatfairvalueandchangestherein,otherthanimpairmentlossesandforeigncurrencydifferenceson available-for-saledebtinstruments(seenote3.2),arerecognisedinothercomprehensiveincomeandpresented inthefairvaluereserveinequity.Whenaninvestmentisderecognised,thegainorlossaccumulatedinequityis reclassifiedtoincomeorexpenditure.

Investmentsinequity instrumentsthatdonothaveaquotedmarketpriceinanactivemarketandwhosefair valuecannotbereliablymeasuredandderivativesthatare linkedtoandmustbesettledbydeliveryofsuch unquotedequityinstrumentsaremeasuredatcost.

Financialassetsavailable-for-salecompriseinvestmentinmediafunds.TheGroupdesignatedavailable-for-sale investmentsforlongterminvestmentsinmediafundswithanexpectedinvestmentperiodof10years.Thefinancial assetsarepresentedasnon-currentunlessmanagementintendstodisposetheassetswithin12monthsafter thereportingdate. (ii) Non-derivativefinancialliabilities Financialliabilities(includingliabilitiesdesignatedatfairvaluethroughprofitorloss)arerecognisedinitiallyonthe tradedate,whichisthedatethattheGroupbecomesapartytothecontractualprovisionsoftheinstrument. TheGroupderecognisesafinancialliabilitywhenitscontractualobligationsaredischarged,cancelledorexpired. Financialassetsandliabilitiesareoffsetandthenetamountpresentedinthestatementsoffinancialpositionwhen, andonlywhen,theGrouphasalegallyenforceablerighttooffsettheamountsandintendseithertosettleonanet basisortorealisetheassetandsettletheliabilitysimultaneously. TheGroup’sothernon-derivativefinancialliabilitiesareclassifiedintotheotherfinancialliabilitiescategory.Other non-derivativefinancialliabilitiesareinitiallymeasuredatfairvaluelessanydirectlyattributabletransactioncosts. Subsequentto initial recognition, thesefinancial liabilitiesaremeasuredatamortisedcostusingtheeffective interestmethod.

Thesefinancialliabilitiescomprisetradeandotherpayablesandamountduetoasubsidiary.


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3.4 Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairmentlosses. Cost includesexpenditure that isdirectlyattributable to theacquisitionof theasset.Thecostofself-constructed assets includes: • the cost of materials and direct labour; • anyothercostsdirectlyattributabletobringingtheassetstoaworkingconditionfortheirintendeduse; • whentheGrouphasanobligationtoremovetheassetorrestorethesite,anestimateofthecostsofdismantling andremovingtheitemsandrestoringthesiteonwhichtheyarelocated;and • capitalisedborrowingcosts. Thegainorlossondisposalofanitemofproperty,plantandequipment(calculatedasthedifferencebetweenthenet proceedsfromdisposalandthecarryingamountoftheitem)isrecognisedinincomeorexpenditure. Thecostofreplacingacomponentofanitemofproperty,plantandequipmentisrecognisedinthecarryingamount oftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthecomponentwillflowtotheGroup, anditscostcanbemeasuredreliably.Thecarryingamountofthereplacedcomponentisderecognised.Thecosts oftheday-to-dayservicingofproperty,plantandequipmentarerecognisedinincomeorexpenditureasincurred. Depreciationisbasedonthecostofanassetlessitsresidualvalue.Significantcomponentsofindividualassetsare assessedandifacomponenthasausefullifethatisdifferentfromtheremainderofthatasset,thatcomponentis depreciatedseparately. Depreciationisrecognisedasanexpenseinincomeorexpenditureonastraight-linebasisovertheestimateduseful livesofeachcomponentofanitemofproperty,plantandequipment,unlessitisincludedinthecarryingamountof anotherasset,andisrecognisedfromthedatethattheproperty,plantandequipmentareinstalledandarereadyfor use.Assetunderconstructionarenotdepreciated. Theestimatedusefullivesforthecurrentperiodareasfollows: Vehicles 5years Furniture,fittingsandequipment 5years Computers 3years Leaseholdimprovements Overtheremainingleaseperiod Building Overtheremainingleaseperiod

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjustedifappropriate.


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3.5 Intangible assets

Computersystemsincludingsoftwaredevelopmentcostsarecapitalisedonthebasisofthecostsincurredtobring touseordevelopthespecificsystem.Directexpendituresincludingemployeecosts,whichenhancesorextendsthe performanceofcomputerorapplicationsystembeyonditsspecificationsandwhichcanbereliablymeasured,isadded totheoriginalcostofthesystem.Costsassociatedwithmaintainingthecomputersystemarerecognisedasexpenses whenincurred. Computersystemsaremeasuredatcostlessaccumulatedamortisationandaccumulatedimpairmentlosses.These costslessresidualvalues,areamortisedandrecognisedtoincomeorexpenditureusingthestraight-linemethodover theirestimatedusefullivesof3years.

Inrespectofinternallyconstructedintangibleassets,amortisationisrecognisedfromthedatethattheassetiscompleted andreadyforuse.Systemsunderdevelopmentarenotamortised.

Theamortisationperiodandamortisationmethodofintangibleassetsarereviewedatleastateachreportingdate.

3.6 Impairment

(i) Non-derivativefinancialassets

Afinancialassetnotcarriedatfairvaluethroughprofitorlossisassessedattheendofeachreportingperiod todeterminewhetherthereisobjectiveevidencethatit isimpaired.Afinancialassetisimpairedifobjective evidenceindicatesthatalosseventhasoccurredaftertheinitialrecognitionoftheasset,andthatthelossevent hasaneffectontheestimatedfuturecashflowsofthatassetthatcanbeestimatedreliably. Objective evidence that financial assets (including equity securities) are impaired can include default or delinquencyby a debtor, restructuringof an amountdue to theGroupon terms that theGroupwould not considerotherwise, indicationsthatadebtoror issuerwillenterbankruptcy,adversechangesinthepayment statusofborrowersorissuers,economicconditionsthatcorrelatewithdefaultsorthedisappearanceofanactive marketforasecurity.Inaddition,foraninvestmentinanequitysecurity,asignificantorprolongeddeclineinits fairvaluebelowitscostisobjectiveevidenceofimpairment.

Loans and receivables TheGroupconsidersevidenceofimpairmentforloansandreceivablesatbothaspecificassetandcollectivelevel. Allindividuallysignificantloansandreceivablesareassessedforspecificimpairment.Allindividuallysignificant receivablesfoundnottobespecificallyimpairedarethencollectivelyassessedforanyimpairmentthathasbeen incurredbutnotyetidentified.Loansandreceivablesthatarenotindividuallysignificantarecollectivelyassessed forimpairmentbygroupingtogetherloansandreceivableswithsimilarriskcharacteristics.

In assessing collective impairment, theGroup uses historical trends of the probability of default, the timing of recoveries and the amountof loss incurred, adjusted formanagement’s judgement as towhether current economicandcreditconditionsaresuchthattheactuallossesarelikelytobegreaterorlessthansuggestedby historicaltrends. Animpairmentlossinrespectofafinancialassetmeasuredatamortisedcostiscalculatedasthedifferencebetween itscarryingamountandthepresentvalueoftheestimatedfuturecashflows,discountedattheasset’soriginal effectiveinterestrate.Lossesarerecognisedinincomeorexpenditureandreflectedinanallowanceaccount againstloansandreceivables.Interestontheimpairedassetcontinuestoberecognised.WhentheGroupc onsidersthattherearenorealisticprospectsofrecoveryoftheasset,therelevantamountsarewrittenoff.Ifthe amountofimpairmentlosssubsequentlydecreasesandthedecreasecanberelatedobjectivelytoaneventoccurring aftertheimpairmentwasrecognised,thenthepreviouslyrecognisedimpairmentlossisreversedthroughincome orexpenditure.


FS14


3.6 Impairment (Cont’d)

(i) Non-derivativefinancialassets(Cont’d)

Financial assets available-for-sale

Impairmentlossesonfinancialassetsavailable-for-salearerecognisedbyreclassifyingthelossesaccumulatedin thefairvaluereserveinequitytoincomeorexpenditure.Thecumulativelossthatisreclassifiedfromequityto income or expenditure is the difference between the acquisition cost, net of any principal repayment and amortisation,andthecurrentfairvalue,lessanyimpairmentlossrecognisedpreviouslyinincomeorexpenditure. Changes in cumulative impairmentprovisionsattributable toapplicationof theeffective interestmethodare reflectedasacomponentofinterestincome. If,inasubsequentperiod,thefairvalueofanimpairedavailable-for-saledebtsecurityincreasesandtheincrease canberelatedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognised,thentheimpairment lossisreversed.Theamountofthereversalisrecognisedinincomeorexpenditure.However,anysubsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensiveincome.

(ii) Non-financialassets The carrying amounts of theGroup’s non-financial assets are reviewed at each reporting date to determine whetherthereisanyindicationofimpairment.Ifanysuchindicationexists,thentheasset’srecoverableamount isestimated.Forintangibleassetsthatarenotyetavailableforuse,therecoverableamountisestimatedeach yearatthesametime.Animpairmentlossisrecognisedifthecarryingamountofanassetoritsrelatedcash- generatingunit(“CGU”)exceedsitsestimatedrecoverableamount. TherecoverableamountofanassetorCGUisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell. Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-tax discountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictothe assetorCGU. For thepurposeof impairmenttesting,assets thatcannotbetested individuallyaregrouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independentofthecashinflowsofotherassetsorCGUs. Impairmentlossesarerecognisedinincomeorexpenditure.ImpairmentlossesrecognisedinrespectofCGUs areallocatedtoreducethecarryingamountsoftheotherassetsintheCGU(groupofCGUs)onapro rata basis. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthat theasset’s carryingamountdoesnotexceed thecarryingamount thatwouldhavebeendetermined,netof depreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.

3.7 Deferred expenditure Expenditure incurred in providing scholarships is capitalised and stated at cost less accumulated amortisation. Amortisation is calculated on a straight-line basis to write off the cost over the period of the scholarship bond from1to6yearscommencingfromtheyearthatthescholarscommenceemploymentwiththeGroup.


FS15



3.8 Employee benefits

(i) Definedcontributionplans

Adefinedcontributionplanisapost-employmentbenefitplanunderwhichanentitypaysfixedcontributions intoaseparateentityandwillhavenolegalorconstructiveobligationtopayfurtheramounts.Obligationsfor contributionstodefinedcontributionpensionplansarerecognisedasanemployeebenefitexpenseinincome orexpenditureintheperiodsduringwhichrelatedservicesarerenderedbyemployees.

Contributionsontheemployees’salariesaremadetotheCentralProvidentFund(“CPF”)asrequiredbylaw.CPF contributionsarerecognisedasemployeecompensationexpensesintheperiodwhentheemployeesrendered theirservices.

(ii) Definedbenefitplans

TheGroupoperatesadefinedbenefitpensionplanthatprovidescertainpost-employmentpensionbenefitsfor eligibleemployees. Adefinedbenefitplanisapost-employmentbenefitplanotherthanadefinedcontributionplan.TheGroup’snet obligationinrespectofdefinedbenefitpensionplansiscalculatedseparatelyforeachplanbyestimatingthe futurebenefitthattheemployeeshaveearnedinreturnfortheirserviceinthecurrentandpriorperiods;that benefitisdiscountedtodetermineitspresentvalue.Thefairvalueofanyplanassetsisdeducted.TheGroup determinesthenetinterestexpense(income)onthenetdefinedbenefitliability(asset)fortheperiodbyapplying thediscount rateused tomeasure thedefinedbenefitobligationat thebeginningof theperiod to thenet definedbenefitliability(asset).ThediscountrateistheyieldoftheSingaporegovernmentbondratethathas maturitydatesapproximating the termsof theAuthority’sobligationsand thataredenominated in thesame currencyinwhichthebenefitsareexpectedtobepaid. Thecalculationisperformedannuallybyaqualifiedactuaryusingtheprojectedunitcreditmethod.Underthe method,a“projectedaccruedbenefit”iscalculatedforeachbenefit.Forallactivemembersofthescheme,the “projectedaccruedbenefit”isbasedonthescheme’saccrualformulaanduponserviceasofthevaluationdate, butusingtheemployee’sschemesalary,projectedtotheageatwhichtheemployeeisassumedtoleaveactive service.Forinactivemembers,itisthetotalbenefit.Thedefinedbenefitobligation/projectbenefitobligation/ plan liability is the discounted present value of the “projected accrued benefits”. The service cost is the correspondingvalueofbenefitsearnedbyactivemembersovertheyearasaresultofonemoreyearofservice. Re-measurements fromdefined benefit plans comprise actuarial gains and losses, the return on plan assets (excluding interest)andtheeffectof theassetceiling (ifany,excluding interest).TheGrouprecognises them immediately in other comprehensive income and all expenses related to definedbenefit plans in employee benefitsexpenseinincomeorexpenditure. Whenthebenefitsofaplanarechanged,orwhenaplaniscurtailed,theportionofthechangedbenefitrelated topastservicebyemployees,orthegainorlossoncurtailment,isrecognisedimmediatelyinprofitorlosswhen theplanamendmentorcurtailmentoccurs.

TheGrouprecognisesgainsandlossesonthesettlementofadefinedbenefitplanwhenthesettlementoccurs. Thegainor lossonsettlement is thedifferencebetweenthepresentvalueof thedefinedbenefitobligation being settled as determined on the date of settlement and the settlement price, including any plan assets transferredandanypaymentsmadedirectlybytheGroupinconnectionwiththesettlement.

FS16


3.8 Employee benefits(Cont’d)

(iii) Terminationbenefits

TerminationbenefitsarerecognisedasanexpensewhentheGroupiscommitteddemonstrably,withoutrealistic possibilityofwithdrawal,toaformaldetailedplantoeitherterminateemploymentbeforethenormalretirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. TerminationbenefitsforvoluntaryredundanciesarerecognisedasanexpenseiftheGrouphasmadeanoffer of voluntary redundancy, it is probable that theofferwill be accepted, and the number of acceptances can be estimated reliably. If benefits are payablemore than 12months after the reporting date, then they are discountedtotheirpresentvalue.

(iv) Short-termemployeebenefits

Short-term employee benefit obligations aremeasured on an undiscounted basis and are expensed as the relatedserviceisprovided.Aliabilityisrecognisedfortheamountexpectedtobepaidundershort-termcash bonusiftheAuthorityhasapresentlegalorconstructiveobligationtopaythisamountasaresultofpastservice providedbytheemployee,andtheobligationcanbeestimatedreliably.

(v) Employeeleaveentitlements

Employeeentitlementstoannualleavearerecognisedwhentheyaccruetoemployees.Accrualismadeforthe unconsumedleaveasaresultofservicesrenderedbyemployeesuptothereportingdate.

(vi) Provisionforex-gratiapayments

ThisamountisprovidedforpaymentstobemadetoformerSingaporeBroadcastingCorporation(“SBC”)staff transferredfromMDAtotheGroup.TheprovisioniscomputedbasedontheguidelinescontainedintheMinistry ofFinance(Revenue)CircularNo.4/94dated10August1994.

3.9 Provisions

Provisionsarerecognisedif,asaresultofapastevent,theGrouphasapresentlegalorconstructiveobligationthat can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle theobligation.Provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsthatreflectscurrentmarket assessmentsofthetimevalueofmoneyandtherisksspecifictotheliability.

3.10 Share capital OrdinarysharesissuedinaccordancewithFCM26/2008-CapitalManagementFrameworkforStatutoryBoards,are classifiedasequity.ThesharesissuedareheldbytheMinisterforFinance,incorporatedbytheMinisterforFinance (Establishment)Act.

3.11 Dividends

DividendspayabletotheMinistryofFinance,theultimateshareholder,arerecognisedwhentheAuthorityapprovesthe dividendsforpayment.


FS17


3 SIGNIFICANT ACCOUNTING POLICIES(CONT’D)

3.12 Trust and agency funds

MoneysreceivedfromtheGovernmentofSingaporeandotherorganisationswheretheAuthorityisnottheowner andbeneficiary,areaccountedforastrustandagencyfunds.

ThetotalnetassetsandliabilitiesofthetrustandagencyfundsoftheAuthority–PublicServiceBroadcast(“PSB”)as wellasothertrustandagencyfundsareshownasaseparatelineinthestatementsoffinancialposition.Trustand agencyfundsareaccountedforonacashbasis.Thereceiptsandexpendituresofthesefundsaredirectlytakento thefundaccounts.

3.13 Restricted funds

Thesearefundssetasideforspecificpurposesandforwhichseparatedisclosureismadeasthesefundsarematerial andsubjecttorestrictionsontheabilityoftheAuthoritytodistributeorotherwiseapplyitsfunds.Thetreatmentis inaccordancewithGuidanceNote1issuedbytheAGD.Restrictedfundsareaccountedforonanaccrualbasis.

3.14 Revenue recognition RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheAuthorityandthe revenuecanbereliablymeasured.Thefollowingrecognitioncriteriamustalsobemetbeforerevenueisrecognised:

(a) Licence & Frequency fees Licenceandfrequencyfeesarerecognisedontheaccrualbasisoverthevalidityperiod,exceptforcertaintypes offeesthatarerecognisedintheyearinwhichtheyarereceived,netofgoodsandservicestax.

(b) Service fees

Servicefeesarerecognisedintheperiodwhentheservicesarerenderedtocustomers,netofgoodsandservicetax.

(c) Revenue from completed films Under theGroup’s industrydevelopments schemes, the shareof returns from themarketingand saleof the completedfilms,televisionprogrammes,digitalmediaandpublishingprojectsarerecognisedasrevenuewhen soldbytheproductioncompaniestotheircustomers.

(d) Interest income

Interestincomeisaccruedonatime-proportionbasisbyreferencetotheprincipaloutstandingusingtheeffective interestmethod.

(e) Unclaimed moneys

UnclaimedmoneysheldbytheAuthoritywhicharenotclaimedwithin6yearsofitsreceiptarerecognisedin incomeorexpenditureas“Otherincome”.

FS18



3.15 Government grants

GovernmentgrantsandcontributionsfromotherorganisationsarerecognisedinitiallyasGrantsreceivedinadvance attheirfairvaluewherethereisreasonableassurancethattheywillbereceivedandtheAuthoritywillcomplywiththe conditionsassociatedwiththegrantsandcontributions. Government grants received to meet the Authority’s operating expenditure are recognised in the income or expenditureasincomeonasystematicbasisinthesamefinancialperiodwhentheexpensesarerecognised. Governmentgrantsutilisedforthepurchaseortheconstructionofdepreciabletangibleandintangibleassetsare recordedinthedeferredcapitalgrantsaccount.Thedeferredcapitalgrantsareamortisedtoincomeorexpenditure overtheperiodnecessarytomatchtheannualdepreciationandamortisationchargeoftheseassetspurchasedwith therelatedgrants.Ondisposaloftheseassets,thebalanceoftherelateddeferredcapitalgrantisrecognisedin incomeorexpendituretomatchthenetbookvalueoftheassetsdisposed.

Governmentgrantsutilised for investment infinancialassetsavailable-for-saleare recorded in theotherdeferred grants account. The other deferred grants are amortised to income or expenditure tomatch the impairment of thesefinancialassets.Ondisposalofthesefinancialassetsavailable-for-sale,thebalanceoftherelatedotherdeferred grantsisrecognisedinincomeorexpendituretomatchanynetimpairmentrelatingtothedisposedinvestments.

3.16 Operating lease payments When entities within the Group are lessees of an operating lease

WheretheGrouphastheuseofassetsunderoperatingleases,paymentsmadeundertheleasesarerecognisedini ncomeorexpenditureonastraight-linebasisoverthetermofthelease.Leaseincentivesreceivedarerecognised inincomeorexpenditureasanintegralpartofthetotalleasepaymentsmade.Leasedassetsarenotrecognisedin theGroup’sstatementsoffinancialposition.

Determining whether an arrangement contains a lease

Atinceptionofanarrangement,theGroupdetermineswhethersuchanarrangementisorcontainsalease.Thiswill bethecaseifthefollowingtwocriteriaaremet:

• thefulfilmentofthearrangementisdependentontheuseofaspecifiedassetorassets;and • thearrangementcontainsarighttousetheasset. At inceptionorupon reassessmentof thearrangement, theGroupseparatespaymentsandotherconsiderations requiredbysuchanarrangementintothosefortheleaseandthoseforotherelementsonthebasisoftheirrelative fairvalues.IftheGroupconcludesforafinanceleasethatitisimpracticabletoseparatethepaymentsreliably,then anassetandaliabilityarerecognisedatanamountequaltothefairvalueoftheunderlyingasset.Subsequently, theliabilityisreducedaspaymentsaremadeandanimputedfinancechargeontheliabilityisrecognisedusingthe Group’sincrementalborrowingrate.

FS19



3.17 Donation

Donations,otherthanthosespecifiedbelow,arerecognisedinincomeintheperiodofreceipt.

Property,plant andequipmentobtained throughdonations that canbe reliablymeasuredare taken todeferred capitalgrantsat their fair value in theperiodof receipt.Thedeferredcapitalgrantsareamortised to incomeor expenditureovertheperiodnecessarytomatchtheannualdepreciationandamortisationchargeoftheseassets.

3.18 Contribution to Consolidated Fund

TheAuthorityisrequiredtomakecontributiontotheConsolidatedFundinaccordancewiththeStatutoryCorporations (Contributions to Consolidation Funds) Act, Chapter 319A. The provision is based on guidelines specified by theMinistryofFinance.Itiscomputedbasedonapercentagepeggedattheprevailingcorporatetaxrateforthe periodofassessmenton thenetsurplusof theAuthorityandafterdeductingprioryear’saccumulateddeficits in accordancewithFCM5/2005–FrameworkforContributiontoConsolidatedFundbyStatutoryboards.Contribution isprovidedforonanaccrualbasis.

TheAuthorityisallowedtocarryforwarditsdeficitstooffsetitsfuturesurplus.Thedeficitshavenoexpirydate.

Thebenefitsassociatedwiththedeficitsarerecognisedasdeferredincometaxassettotheextentthatrealisation oftherelatedbenefitsthroughfuturesurplusisprobable.

3.19 New standards and interpretations not adopted

Anumberofnewstandards,amendmentstostandardsandinterpretationsareeffectiveforannualperiodsbeginning after1October2016,andearlierapplicationispermitted;however,theGrouphavenotearlyappliedthefollowing newstandardsandinterpretationsinpreparingthesestatements.

ThesenewstandardsthatmayberelevanttotheGroupinfuturefinancialperiods,andwhichtheGroupdoesnotplan toearlyadopt,aresetoutbelow.

• SB-FRS 109 replaces most of the existing guidance in SB-FRS 39 Financial Instruments: Recognition and Measurement. It includesrevisedguidanceonclassificationandmeasurementoffinancial instruments,anew expected credit loss model for calculating impairment on financial assets, and new general hedge accountingrequirements.

AsSB-FRS109ismandatoryforadoptionbytheGroupforannualperiodbeginningonorafter1January2018. Wheneffective,SB-FRS109willchangetheexistingaccountingstandardsandguidanceappliedbytheGroup inaccountingforfinancialinstruments,thisstandardisexpectedtoberelevanttotheGroup.TheGroupdoes notplantoadoptthisstandardearly.

FS20



3.19 New standards and interpretations not adopted (Cont’d) • SB-FRS115Revenue from Contracts with Customers.

SB-FRS115was issued inNovember2014andestablishesanewfive-stepmodel thatwill apply to revenue arising from contracts with customers. Under SB-FRS 115, revenue is recognised at an amount that reflects theconsiderationtowhichanentityexpectstobeentitledinexchangefortransferringgoodsorservicestoa customer. The principles in SB-FRS 115 provide amore structured approach tomeasuring and recognising revenue.Thenewrevenuestandardisapplicabletoallentitiesandwillsupersedeallcurrentrevenuerecognition requirementsunderSB-FRS.Eithera fullormodified retrospectiveapplication is required for annualperiods beginningonorafter1January2018withearlyadoptionpermitted.TheGroupiscurrentlyassessingtheimpact ofSB-FRS115toitsfinancialstatement.

• SB-FRS116Leaseseliminates the lessee’sclassificationof leasesaseitheroperating leasesorfinance leases and introducesasingle lesseeaccountingmodel.Applyingthenewmodel,a lessee is requiredtorecognise right-of-use (ROU) assets and lease liabilities for all leaseswith a term ofmore than 12months, unless the underlyingasset isof lowvalue. SB-FRS116substantiallycarriesforwardthelessoraccountingrequirements inSB-FRS17Leases.Accordingly,alessorcontinuestoclassifyitsleasesasoperatingleasesorfinanceleases, and toaccount for these two typesof leasesusing theSB-FRS17Leasesoperating leaseandfinance lease accountingmodelsrespectively.However,SB-FRS116requiresmoreextensivedisclosurestobeprovidedby alessor.

Wheneffective,SB-FRS116replacesexistingleaseaccountingguidance,includingSB-FRS17Leases,INTSB- FRS104Determiningwhether an Arrangement contains a Lease,INTSB-FRS15Operating Leases – Incentives, andINTSB-FRS27Evaluating the Substance of Transactions Involving the Legal Form of a Lease.SB-FRS116 Leases iseffectiveforannualperiodsbeginningonorafter1January2019,withearlyadoptionpermittedifFRS 115Revenue from Contracts with Customersisalsoapplied. TheGroupiscurrentlyassessingthepotentialimpactofadoptingthesenewstandardsandinterpretationsonthe financialstatementsoftheGroup.

FS21

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FS22

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FS23


5 INTANGIBLE ASSETS

Computer Systems under Systems development Total $’000 $’000 $’000 Group and Authority Cost TransferredonestablishmentoftheGroupon 1October2016 23,595 595 24,190 Additions 1,271 2,801 4,072 Reclassification 1,630 (1,630) – At31March2017 26,496 1,766 28,262 Accumulated amortisation TransferredonestablishmentoftheGroupon 1October2016 19,959 – 19,959 Amortisationfortheperiod 1,800 – 1,800 At31March2017 21,759 – 21,759 Carrying amounts At 1 October 2016 (dateofestablishment) 3,636 595 4,231 At31March2017 4,737 1,766 6,503

6 SUBSIDIARY

Authority 2017 $’000 Unquotedshares,atcost 3,813

Principal activities/ Effective equity interest country of incorporation held by the Authority Name of subsidiary and operation 2017 % SingaporeNetworkInformation Registryofinternet CentrePrivateLimited 1 domainnames/Singapore 100

1 AuditedbyKPMGLLP,Singapore

FS24


7 AVAILABLE-FOR-SALE FINANCIAL ASSETS

Group and Authority 2017 $’000 Transferred on establishment of the GroupandAuthorityon1October2016 (netofimpairmentandfairvaluegain) 3,098 Divestment (2,335) At 31 March 2017 763

Investmentinmediafundsrelatestocollaborationwithotherinvestorstofinancethedevelopmentofmediacompanies. Theseinvestmentslastfor10yearsandrepaymenttermsvaryaccordingtothetermsoftheagreements.

8 CASH AND CASH EQUIVALENTS

Group Authority Note 2017 2017 $’000 $’000 GeneralFund 1,101,640 1,089,443 RestrictedFunds 25 19,840 19,840 1,121,480 1,109,283 Cashatbankandonhand - depositsheldwithAccountant-General’s Department(“AGD”) 1,207,507 1,195,310 - depositsheldwithAGDmanagedbythe Authorityonbehalfofotherministries 19 (86,027) (86,027) 1,121,480 1,109,283

TheGroupparticipates in theAGD’sCentralisedLiquidityManagementScheme (“CLM”)whereby theGroup’s cash is pooledtogetherandmanagedcentrallybyAGD,arelatedparty,infixeddeposits.Individualaccountsarestillmaintained fordailytransactionpurposeandfundsaretransferredfromdepositsheldwithAGDwheneverthereareinsufficientfunds for transactional purpose.AGDpays interest on theGroup’s cashbalances participating inAGD’sCLM. The effective interestratewas1.31%.

CashandcashequivalentsoftheGroupandAuthorityincludeanamountof$40,778,000(Note13)earmarkedforpayment ofpensionandmedicalbenefitstopensioners.

FS25


9 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Group and Note Authority 2017 $’000 Transferred on establishment of the GroupandAuthorityon1October2016 646,370 Addition 11 Divestment (517,225) Netfairvaluechangerecognisedinincomeorexpenditure 21 (6,605) At31March2017 122,551 Financialassetsatfairvaluethroughprofitorloss - Quotedunittrusts 46,937 - Unquotedunittrusts 75,614 122,551

Theunittrustsareindiversifiedportfoliosofvariousassetclassesmanagedbyprofessionalfundmanagersawardedby AGDundertheDemandAggregationIIandIIISchemes.

10 TRADE AND OTHER RECEIVABLES

Group Authority 2017 2017 $’000 $’000 Tradereceivables 9,036 9,036 Less:Allowanceforimpairmentoftradereceivables (1,158) (1,158) 7,878 7,878 Unbilledreceivables 11,877 11,877 Otherreceivables - amountduefromMCI 50,435 50,435 - duefromastatutoryboard 73,171 73,171 - sundrydebtors 8,264 8,264 - interestreceivablefromAGD 5,420 5,320 157,045 156,945 Advancesanddeposits 3,719 3,719 Loansandreceivables 160,764 160,664 Prepayments 1,090 1,030 161,854 161,694

FS26

11 SHARE CAPITAL

Group and Authority 2017 2017 Number of $’000 shares (’000) TransferredonestablishmentoftheGroupandAuthorityon 1October2016and31March2017 1,201 1,201

On the establishment of IMDAon 1October 2016, share capital of $1,201,000 comprising of 1,201,000 shareswere transferredfromMDAtoIMDA.ThesharesissuedareheldbytheMinisterforFinance,incorporatedbytheMinisterfor Finance(Incorporation)Act.Theholdersofthesesharesareentitledtoreceivedividendsasandwhendeclaredbythe Authority.Thesharescarrynovotingrightsandhavenoparvalue.

12 CAPITAL ACCOUNT

Thecapitalaccountcomprisesthecapitalisationofnetassets/(liabilities)transferredfromtheMDAandcertaindivisionsof IDAon1October2016,thedateofestablishmentoftheGroupandtheAuthorityupontherestructuringofMDAandIDA toformIMDAandGovernmentTechnologyAgency.

13 PROVISION FOR PENSION AND MEDICAL BENEFITS

Theprovisionforpensionandmedicalbenefitsrelatestobenefitspayableuponretirementofofficerswhoweretransferred totheGroupandtheAuthorityfromtheMediaDevelopmentAuthorityofSingaporeandInfo-communicationsDevelopment AuthorityofSingaporeupontheestablishmentoftheGroupandtheAuthorityon1October2016.

TheGroupcontributestothefollowingpost-employmentdefinedbenefitplans:

a. Pensionbenefits–Theplanprovidespensionbenefitstopensionableemployeeswithatleast10yearsofpensionable services,whotransferredtotheAuthorityfromdirectemploymentwiththeSingaporegovernment.

b. Post-retirement benefits – The plan provides its eligible employees and their dependents with post-retirement medicalbenefits.

TheemployeebenefitsplansexposetheGrouptoactuarialrisks,suchaslongevityriskandinterestraterisk.Asat31March 2017,theGroupexpectstopay$40,778,000incontributionstoitsdefinedbenefitplans.


FS27

13 PROVISION FOR PENSION AND MEDICAL BENEFITS(CONT’D)

(a) Theamountrecognisedinthestatementsoffinancialpositionisdeterminedasfollows:

Group and Authority 2017 $’000

Presentvalueofobligations 40,778 Comprising: - Current 3,952 - Non-current 36,826 40,778 (b) Theamountsrecognisedinincomeorexpenditureareasfollows:

Group and Authority 2017 $’000 Currentservicecost 2 Interestcost 425 Expensesrecognisedinincomeorexpenditure 427

(c) Theamountsrecognisedinothercomprehensiveincomeareasfollows:

Group and Authority 2017 $’000 Actuarial gain arising from: Financialassumptions 1,757 Experienceadjustment 789 2,546

(d)Movementinthefairvalueofpensionandmedicalbenefitsisasfollows:

Group and Authority 2017 $’000 Transferred on establishment of the GroupandAuthorityon1October2016 44,972 Currentservicecost 2 Interestcost 425 Actuarialgainrecognisedinothercomprehensiveincome (2,546) Benefitspaid (2,075) At31March2017 40,778


FS28


13 PROVISION FOR PENSION AND MEDICAL BENEFITS(CONT’D)

TheprincipalassumptionusedindeterminingtheGroupandAuthority’spensionobligationsis:

Group and Authority 2017 Discountrate 2.10%

ThediscountrateusedisbasedontheinterpolatedyieldrateofSingaporeGovernmentBondwithdurationof8years, which is theweighteddurationof futurebenefitpayments. TheSingaporeMortality TableS2004-08M/Fwasused for purposeofthelatestvaluationofpensionliabilities.

Sensitivity analysis

Thecalculationofthedefinedbenefitobligationissensitivetotheassumptionsetoutabove.Thefollowingtablesummarises howtheimpactonthedefinedbenefitobligationattheendofthereportingperiodwouldhaveincreased/(decreased)as aresultofachangeintheassumptionby0.25percent.

Defined benefit obligation 0.25 percent 0.25 percent increase decrease $’000 $’000 Group and Authority 31 March 2017 Discountrate (709) 731

Theabovesensitivitiesarebasedontheaveragedurationofthebenefitobligationdeterminedatthedateofthelastfull actuarialvaluationat31March2017andareappliedtoadjustthedefinedbenefitobligationattheendofthereporting period for theassumptions concerned.Whilst theanalysisdoesnot takeaccountof the full distributionof cashflows expectedundertheplan,itdoesprovideanapproximationtothesensitivityoftheassumptionsshown.

14 TRADE AND OTHER PAYABLES Group Authority 2017 2017 $’000 $’000 Tradeandotherpayables 24,682 24,698 Accruedoperatingexpenses 25,100 24,787 Accrueddevelopmentexpenses 26,885 26,885 Depositsreceived 1,391 1,036 Accruedpayrollrelatedcosts 32,337 32,040 110,395 109,446

FS29


15 DEFERRED INCOME

Deferred incomemainlycomprises licenseand related fees thatwillbe recognised in incomeorexpenditureover the remainingperiodofthelicence,whichoccurssubsequenttoyearend.

16 GRANTS RECEIVED IN ADVANCE

General Restricted Fund Funds Total Note 2017 2017 2017 $’000 $’000 $’000 Group and Authority Transferred on establishment of the GroupandAuthorityon1October2016 - grantsreceivedinadvance 33,740 8,910 42,650 - grantsreceivables – (10,577) (10,577) 33,740 (1,667) 32,073 Receivedduringtheperiod 33,395 43,766 77,161 Transfertodeferredcapitalgrants 17 (3,438) (3,188) (6,626) Transferfromotherdeferredgrants 18 – 653 653 Transfertoincomeorexpenditure - governmentgrants (25,844) (33,172) (59,016) At31March2017 37,853 6,392 44,245

17 DEFERRED CAPITAL GRANTS

General Restricted Fund Funds Total Note 2017 2017 2017 $’000 $’000 $’000 Group and Authority Transferred on establishment of the GroupandAuthorityon 1October2016 5,696 10 5,706 Transferfromgrantsreceivedinadvance 16 3,438 3,188 6,626 Transfertoincomeorexpenditure - deferredcapitalgrantsamortised (1,554) (598) (2,152) At31March2017 7,580 2,600 10,180

FS30


18 OTHER DEFERRED GRANTS

Restricted Funds Note 2017 $’000 Group and Authority Transferred on establishment of the GroupandAuthorityon1October2016 964 Transfertograntsreceivedinadvance 16 (653) At 31 March 2017 311

19 TRUST AND AGENCY FUNDS

Detailsofthetrustandagencyfundsaresetoutbelowandhavebeenpreparedfromtherecordsofthesefundsandreflect onlytransactionshandledbytheGroupandtheAuthority:

Thereceiptsandexpenditureforthefinancialperiodaretakendirectlytothefunds’accounts,andthenetassetsofthese fundsatthereportingdateareasfollows:

Group and Authority 2017 $’000 PSB 82,261 Others 8,446 90,707

PSB Others Total 2017 2017 2017 $’000 $’000 $’000

Group and Authority Transferred on establishment of the GroupandAuthorityon1October2016 75,319 5,752 81,071 Receipts/receivables - governmentgrants 58,593 12,987 71,580 Deferredcapitalgrants – 12 12 Less: Fundsutilisedintheperiod (51,651) (10,305) (61,956) At31March2017 82,261 8,446 90,707 Representedby: Cashandcashequivalents 77,233 8,794 86,027 Otherassets 24,937 136 25,073 Currentliabilities (19,909) (484) (20,393) Netassets 82,261 8,446 90,707

FS31


20 OTHER INCOME

Group Authority 1 October 2016 1 October 2016 (date of (date of establishment) establishment) to 31 March 2017 to 31 March 2017 $’000 $’000

Subscriptionfeesrefunded 1,185 1,185 Others 164 221 1,349 1,406

21 NET LOSS ON FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Group and Note Authority 2017 $’000

Netfairvaluechangerecognisedinincomeorexpenditure 9 6,605 Less:FairvaluelossrecoverablefromGovernmentTechnologyAgency (4,252) 2,353

FollowingtherestructuringofMDAandIDAtoformIMDAandGovernmentTechnologyAgency(“GovTech”),theassets, liabilitiesandequityasat30September2016wasallocatedtoIMDAandGovTechinaccordancewiththebasisasagreed (“agreement”) by both parties. In accordance with the aforementioned agreement, the Group is entitled to recover $4,252,000fromGovTechrelatingtothefairvaluelossfromdivestmentoffinancialassetsatfairvaluethroughprofitand losswhichwastransferredfromIDA.

22 EMPLOYEE COMPENSATION

Group Authority 1 October 2016 1 October 2016 (date of (date of establishment) establishment) Note to 31 March 2017 to 31 March 2017 $’000 $’000

Wagesandsalaries 52,273 51,461 Employer’scontributiontoCentralProvidentFund 5,551 5,475 Pensionandmedicalbenefits 13 427 427 Otherbenefits 990 990 59,241 58,353

FS32


23 DEVELOPMENT EXPENSES

General Restricted Fund Funds 2017 2017 Total $’000 $’000 $’000 Group and Authority iN2015Masterplan 4,656 11,746 16,402 InfocommMedia2025 – 9,816 9,816 NextGenerationNationalBroadbandNetwork – 8,426 8,426 FibreReadyScheme – 1,576 1,576 DigitalTelevision(“DTV”)AssistanceScheme 9,215 – 9,215 SingaporeMediaFusionPlan(“SMFP”) 4,205 653 4,858 Others 2,892 – 2,892 20,968 32,217 53,185

iN2015Masterplan

The IntelligentNation2015 (“iN2015”)Masterplan isSingapore’s long-termstrategic info-communicationsmasterplan tofurtherenhancequalityoflifeandcreatenewnationalcompetitiveadvantagethroughinfocommunications.Theplan seekstoenrichthelivesofthepeople,enhanceSingapore’seconomiccompetitivenessandincreasethegrowthofthe info-communicationsindustry.

InfocommMedia2025

InfocommMedia2025setsouttocreateagloballycompetitiveinfocommmediaecosystemthatenablesandcomplements Singapore’sSmartNationVision,effectseconomicandsocialtransformation,andcreatesenrichingandcompellingcontent.

NextGenerationNationalBroadbandNetwork

TheNextGenerationNationalBroadbandNetwork(“NextGenNBN”)isanextgenerationnationaldigitalcommunication network. The Next Gen NBN will entrench Singapore’s Infocomm hub status and open the doors to new economic opportunities,businessgrowthandsocialvibrancyforthecountry.TheNextGenNBNwillofferpervasive,competitively priced,ultra-highbroadbandspeedsof1Gbpsandbeyond.

DTVAssistanceScheme

TheDTVAssistanceSchemewasimplementedtohelplow-incomehouseholdsmaketheswitchtodigitalTVsothatthey cancontinuetowatchtheirfavouritefree-to-airTVprogrammes.

SingaporeMediaFusionPlan

TheSingaporeMediaFusionPlan’s (SMFP)objective is tostrengthen thebuildingblocksof themediaecosystemand supportthecreationofinnovativecontent,applicationsandserviceswithglobalappeal.

FS33


24 PROVISION FOR CONTRIBUTION TO CONSOLIDATED FUND

ThecontributiontotheConsolidatedFundisbasedon17%ofthenetsurplusoftheAuthority.

FollowingtherestructuringoftheMDAandIDA,thenetdeficitpositionof$100,567,000fromMDAwasbroughtforward totheAuthorityon1October2016.

With net deficit of $22,088,000 recognised in the current period, the Authority has remaining unrecognised deficits of$122,655,000atthereportingdatewhichcanbecarriedforwardandusedtooffsetagainstfuturecontributionstothe ConsolidatedFund.

25 NET ASSETS OF RESTRICTED FUNDS

Group and Note Authority 2017 $’000

Property,plantandequipment 2,600 Available-for-salefinancialassets 763 Non-current assets 3,363 Cashandcashequivalents 8 19,840 Tradeandotherreceivables 1,216 Current assets 21,056 Total assets 24,419 Tradeandotherpayables 15,116 Grantsreceivedinadvance 16 6,392 Deferredcapitalgrants 17 2,600 Otherdeferredgrants 18 311 Current liabilities 24,419 Total liabilities 24,419 Net assets –

26 COMMITMENTS

(a) Capital commitments

Capitalexpenditurescontractedforatthereportingdatebutnotrecognisedinthefinancialstatementsareasfollows: Group and Authority 2017 $’000 Property,plantandequipment 2,217

FS34

26 COMMITMENTS(CONT’D)

(b) Non-cancellable operating lease commitments

TheGroupleasesofficepremisesundernon-cancellableoperatingleaseagreements.Theleaseshavevaryingterms, escalationclausesandrenewalrights.

Thefutureminimumleasepayableundernon-cancellableoperatingleasescontractedwithanotherstatutoryboardat thereportingdatebutnotrecognisedasliabilities,areasfollows: Group and Authority 2017 $’000 Notlaterthanoneyear 2,462 Betweenoneandfiveyears 724 3,186

(c) Restricted Funds

ThestatementsshownbelowrepresentstheamountcommittedagainstamountallocatedtoRestrictedFunds. Group and Authority 2017 $’000 Amountallocated 1,619,820 Amount utilised - Developmentexpenses (33,864) - Property,plantandequipment (3,079) (36,943) Amountcommittedbutyettobeutilised (55,030) Amountuncommitted 1,527,847

(d) Financial assets available-for-sale

Commitmentsforfinancialassetsavailable-for-salemanagedbyfundmanagersatreportingdateareasfollows: Group and Authority 2017 $’000 Amountunutilised 2,057


FS35

27 RELATED PARTY TRANSACTIONS

Forthepurposeofthesefinancialstatements,partiesareconsideredtoberelatedtotheAuthorityiftheAuthorityhasthe ability,directlyor indirectly, tocontrol thepartyorexercisesignificant influenceover theparty inmakingfinancialand operating decisions, or vice versa, or where the Authority and the party are subject to common control or common significantinfluence.Relatedpartiesmaybeindividualsorotherentities.

(a) Significant related party transactions

SomeoftheAuthority’stransactionsandarrangementsarewithrelatedpartiesandtheeffectofthesetransactionsand arrangementsbetweenthepartiesarereflectedinthesefinancialstatements.

TheamountduetoasubsidiaryrelatestofundsplacedbythesubsidiarywiththeAuthorityastheAuthoritymanages thefundsbyinvestingindebtandequitysecuritiesonapooledbasisforupto5years.Theoutstandingbalancedue toasubsidiaryisunsecuredandbearsinterestatafixedrateof2%perannum.

TheamountduefromasubsidiarymainlyrelatestorechargesofcertainexpensesfromtheAuthority.Theoutstanding balanceduefromasubsidiaryisunsecured,interest-freeandrepayableondemand.

Theremainingbalanceswithrelatedpartiesareunsecured,interest-freeandrepayableondemand.

Duringthefinancialperiod,otherthandisclosedelsewhereinthefinancialstatements,thesignificanttransactionswith relatedpartieswhichwerecarriedoutinthenormalcourseofbusinessareasfollows: Authority 1 October 2016 (date of establishment) to 31 March 2017 $’000 MCI ServicesandexpensespaidtoMCI (575) ComputerandInfo-technologyrelatedexpenses (2,843) ExpensespaidonbehalfofMCI (755) Subsidiary Professionalservicefeesincome 7 Rentalincome 47 Other income 13 Recoveryofmanpowercharges 647 Interestexpenses (100) Other Ministries and Statutory Boards ServicesandexpensespaidtootherMinistries (6,125) ServicesandexpensespaidtootherStatutoryBoards (4,710) ComputerandInfo-technologyrelatedexpenses (309) Operatingleaseexpense (2,266)


FS36

27 RELATED PARTY TRANSACTIONS (CONT’D)

(b) Compensation of key management personnel

Keymanagementpersonnelremunerationisasfollows: Group Authority 1 October 2016 1 October 2016 (date of (date of establishment) establishment) Note to 31 March 2017 to 31 March 2017 $’000 $’000 Wagesandsalaries 2,453 2,381 Employer’scontributiontoCentralProvidentFund 174 168 Boardmembers’allowances 172 172 2,799 2,721

28 FINANCIAL RISK MANAGEMENT

Overview

TheGrouphasexposuretomarketrisk(includingcurrency,priceandinterestraterisk),creditriskandliquidityriskfromits useoffinancialinstruments.

Risk management framework

TheGroupisresponsibleforsettingtheobjectivesandunderlyingprinciplesoffinancialriskmanagementfortheGroup. TheBoardthenestablishesthedetailedpoliciessuchasexposurelimits,riskidentificationandmeasurement.

TheGroupmeasuresactualexposureagainstthelimitssetandpreparesregularreportsforthereviewoftheBoard.The informationpresentedbelowisbasedoninformationreceivedbykeymanagement.

(a) Market risk

Market risk refers to the risk arising from uncertainty in the future values of a financial instrument, resulting from movementsinfactorssuchasequityprices,foreignexchangeratesandmarketinterestrates.TheGroup’sexposureto eachofthesefactorsispresentedinthefollowingparagraphs.

Currency risk

TheGroupoperatesmainlyinSingapore.TheGroup’soperationsarenotexposedtosignificantforeigncurrencyrisks asithasnosignificanttransactionsdenominatedinforeigncurrencies.


FS37

28 FINANCIAL RISK MANAGEMENT (CONT’D)

(a) Market risk (Cont’d)

Price risk

Priceriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatearisingfromchanges inmarketplaces(otherthanthosearisingfrominterestrateriskorcurrencyrisk),whetherthosechangesarecausedby factorsspecifictotheindividualfinancialinstrumentsoritsissuer,orfactorsaffectingsimilarfinancialinstrumentstraded inthemarket.

TheGroupisexposedtopriceriskarisingfromitsinvestmentsinfundinvestmentscategorisedasfinancialassetsatfair valuethroughprofitorloss.Theriskismanagedthroughfunddiversificationacrossdifferentassetclassesinvarious markets.Themarketriskassociatedwiththeseinvestmentsisthepotentiallossinfairvalueresultingfromthedecrease inthenetassetvalueofunittrusts.

Sensitivity analysis A10%decreaseintheunderlyingmarketpricesornetassetvalueofunittrustsatthereportingdate,withallother variablesremainconstant,woulddecreasenetsurplusordeficitbythefollowingamount: Group and Authority 2017 $’000 Quotedunittrusts 4,694 Unquotedunittrusts 7,561

A10%increaseintheunderlyingmarketpricesornetassetvalueofunittrustswouldhavehadtheequalbutopposite effecttotheamountsshownabove,onthebasisthatallothervariablesremainconstant.

Interest rate risk

TheGroup’sexposuretointerestrateriskforchangesininterestratesarisesprimarilyfromdepositsheldwithAGD.

TheGroupperiodicallyreviewsandmonitorsinterestratefluctuationstoensurethattheexposuretointerestrateriskis withinacceptablelimits.SurplusfundsareplacedwithAGD.

ThetablebelowsetouttheGroup’sexposuretointerestraterisks.

Group Authority Note 2017 2017 $’000 $’000 Variable rate instrument DepositsheldwithAGD 8 1,121,480 1,109,283


FS38


(a) Market risk (Cont’d)

Cash flow sensitivity analysis for variable rate instruments

Achangeof100basispointsininterestratesatthereportingdatewouldhaveincreased/(decreased)netsurplusor deficitbytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularforeigncurrencyrates, remainconstant. Net surplus or deficit 100bp 100bp increase decrease $’000 $’000 Group 31 March 2017 Variablerateinstruments 11,215 (11,215) Authority 31 March 2017 Variablerateinstruments 11,093 (11,093)

(b) Credit risk

Creditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationresultinginfinanciallosstothe GroupandtheAuthority.ThecarryingamountsoftheGroupandtheAuthority’smajorclassesoffinancialassetssuchas cashandcashequivalents,tradeandotherreceivables(excludingprepayments),amountduefromasubsidiary,financial assetsavailable-for-saleandfinancialassetsatfairvaluethroughprofitorlossrepresentsthemaximumexposureto creditrisk.

CashandcashequivalentsaremainlydepositsheldwithAGDandbankswhichhavehighcredit-ratingsasdetermined by international credit-rating agencies. Trade and other receivables that are neither past due nor impaired are substantiallyentitieswithgoodcollectiontrackrecordswiththeGroup. TheGroup limits its credit riskexposure in respectof investmentsbyplacing its fundsonlywithprofessional fund managers recommendedby an investment consultantor awardedbyAGDunder theDemandAggregation II and IIIScheme. TheGroupandtheAuthorityhasnocollateralinrespectoftheseinvestments.Duringtheperiodended31March2017, noimpairmentwasrecognisedontheGroup’sandtheAuthority’savailable-for-salefinancialassets.

TheGroupadopts thepolicyofdealingonlywithcompaniesofappropriatecredithistory,andobtainingsufficient securitywhereappropriatetomitigatecreditrisk.


FS39


(b) Credit risk (Cont’d) Theageingofloansandreceivablesareasfollows: Group Authority* Impairment Funds Impairment Gross loss Gross loss 2017 2017 2017 2017 $’000 $’000 $’000 $’000 Notpastdue 161,226 (1,103) 161,826 (1,103) Pastduelessthan3months 675 (55) 675 (55) Pastdue3to6months 21 – 21 – 161,922 (1,158) 162,522 (1,158)

* includes amount due from a subsidiary

Themovement in allowance for impairment loss in respect of loans and receivables during the financial period is asfollows: Group and Authority 2017 $’000 Transferred from establishment of the GroupandAuthorityon1October2016 1,360 Chargetoincomeorexpenditure 128 Utilisedduringtheperiod (330) At31March2017 1,158

Theimpairmentintradeandotherreceivablesisduetoseveraldebtorswhohavenotpaidtheiroutstandingamounts despite reminders. The Group and the Authority wrote-off the balances which have been assessed as, and deemeduncollectible.


FS40


(c) Liquidity risk

Liquidity risk is the risk of not being able to meet financial obligations arising from fluctuations in cash flow of financialassets.

TheGroupandtheAuthorityarenotsubjecttoregulatoryrequirementtomaintainminimumcashlevel.Itisthepolicy of theGroup and the Authority tomaintain a level of cash deemed adequate by themanagement to finance its operationsandmitigatetheeffectsoffluctuationsincashflows.

ThefinancialliabilitiesoftheGroupandtheAuthorityarepresentedinthestatementsoffinancialposition.Thecurrent liabilitiesarenon-interestbearingandrepayablewithinoneyearfromtheendofthereportingperiod.Thefinancial assetsoftheGroupandtheAuthorityareabletomeetthesefinancialobligations.

ThefollowingarethecontractualmaturitiesoffinancialliabilitiesoftheGroupandAuthorityincludingestimatedinterest paymentsandexcludingtheimpactofnettingarrangements:

Cash flows Carrying Contractual Within Between one amount cash flows a year to five years $’000 $’000 $’000 $’000 Group 2017 Tradeandotherpayables 110,395 110,395 110,395 – Authority 2017 Tradeandotherpayables 109,446 109,446 109,446 – Amountduetoasubsidiary 10,000 10,200 – 10,200 119,446 119,646 109,446 10,200

Itisnotexpectedthatthecashflowsincludedinthematurityanalysiscouldoccursignificantlyearlier,oratsignificantly differentamounts.

(d) Capital management

TheGroupandtheAuthoritymanage itscapital toensurethat theGroupandtheAuthoritywillcontinueasgoing concern.ThecapitalstructureoftheGroupandtheAuthoritycompriseonlyequityasreflectedinthestatementsof changesinequity.

TheGroupand theAuthority review itscapital structureperiodically.Aspartof this review, thecostofcapitaland associatedrisksareconsidered.TheAuthorityisnotsubjecttoanycapitalrequirementsundertheInfo-communications MediaDevelopmentAuthorityAct(No.22of2016)oranyotherexternallyimposedcapitalrequirements,exceptfor thosemandatedbytheMinistryofFinance.

(e) Accounting classifications and fair values

Determination of fair values

Financial assets at fair value through profit and loss and financial assets available-for-sale

Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarketisdeterminedbyusingvaluationtechniques. TheGroupandtheAuthorityusesavarietyofmethodsandmakesassumptionsthatarebasedonmarketconditions existingateachreportingdate.Othertechniques,suchasestimateddiscountedcashflows,areusedtodeterminefair valuefortheremainingfinancialinstruments.


FS41


(e) Accounting classifications and fair values (Cont’d)

Determination of fair values(Cont’d) Thefairvalueofthequotedunittrustsisbasedonthemarketbidprice.Asthefundisnotlistedinanactivemarket, theseinstrumentsareincludedinLevel2. Thefairvalueofunquotedunittrustsisbasedonrealisationpriceprovidedbytheadministratorofthoseunittrusts. TheseinstrumentsareincludedinLevel3.

Other financial assets and liabilities

Thecarryingamountsoftradeandotherreceivables,tradeandotherpayablesandamountdueto/fromasubsidiary areassumedtoapproximatetheirfairvaluesbecauseoftheshortperiodtomaturity.

Fair value hierarchy

Thetablebelowpresentsthefairvaluemeasurementsforfinancialassetsandfinancialliabilities,bythelevelsinthefair valuehierarchybasedontheinputstovaluationtechniques.

Thedifferentlevelsaredefinedasfollows:

(i) quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities(Level1); (ii) inputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly (i.e.prices)orindirectly(i.e.derivedfromprices)(Level2);and (iii)inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs)(Level3).

Valuation technique and key unobservable input

Thefollowingisalistofthevaluationtechniquesandthekeyunobservableinputsusedinthedeterminationoffair valueoftheavailable-for-saleinvestmentsandfinancialassetsatfairvaluethroughprofitandloss.

Valuation technique Inter-relationship between significant unobservable inputs and fair value measurement Theestimatedfairvaluewoulddecreaseif: Valuationofrecentacquisitionconsideration • valuationofrecentacquisitionconsiderationwaslower; Valuationofrealisationprice • valuationofrealisationpricewaslower

Managementconsiders thatchangingoneormoreof thesignificantunobservable inputsusedtoother reasonably possiblealternativeassumptionswouldnotresultinasignificantchangeintheestimatedfairvalue.

Key unobservable inputs

Keyunobservableinputscorrespondto:

• Fundmanager’sjudgementwithregardtotheassumptionthattherecentacquisitionconsiderationarereflective offairvalueofinvestment. • Fundmanager’sassessmentthattherearenomajorchangesinthebusinessandmarketenvironmentthatwould impactthevalueoftheinvestmentmaterially. • Fundmanager’sjudgementwithregardtotherealisationpriceusedindeterminingthevalueofunittrust.


FS42

28 F

INA

NCI

AL

RISK

MA

NA

GEM

ENT (CONT’D)

NO

TES

TO T

HE

FIN

AN

CIA

L ST

ATEM

ENTS

As

at 3

1 M

arch

201

7

Thecarryingamountsandfairvaluesoffinancialassetsandfinancialliabilities,includingtheirlevelsinthefairvaluehierarchyareasfollows.Itdoesnotincludefairvalueinformationforfinancialassetsand

financialliabilitiesnotmeasuredatfairvalueifthecarryingamountisareasonableapproximationoffairvalue.

Ca

rryi

ng a

mou

nt

Fair

valu

e

Oth

er

Des

igna

ted

Loan

s an

d fin

anci

al

at fa

ir A

vaila

ble

N

ote

rece

ivab

les

liabi

litie

s va

lue

-for-s

ale

Tota

l Le

vel 1

Le

vel 2

Le

vel 3

To

tal

$’00

0 $’

000

$’00

0 $’

000

$’00

0 $’

000

$’00

0 $’

000

$’00

0

G

roup

31 M

arch

201

7

A

sset

s

Fi

nanc

ial a

sset

s m

easu

red

at

fair

valu

e

Available-for-salefinancialasset

7–

––

763

763

––

763

763

Financialassetatfairvalue

throughprofitorloss

9–

–122,551

–122,551

–46,937

75,614

122,551

––

122,551

763

123,314

Fina

ncia

l ass

ets

not m

easu

red

at

fair

valu

e

Cashandcashequivalents

81,121,480

––

–1,121,480

Tradeandotherreceivables*

10

160,764

––

–160,764

1,282,244

––

–1,282,244

Liab

ilitie

s

Fi

nanc

ial l

iabi

litie

s no

t

mea

sure

d at

fair

valu

e

Tradeandotherpayables

14

–110,395

––

110,395

*excludesprepayments

FS43

28 F

INA

NCI

AL

RISK

MA

NA

GEM

ENT (CONT’D)

NO

TES

TO T

HE

FIN

AN

CIA

L ST

ATEM

ENTS

As

at 3

1 M

arch

201

7

Ca

rryi

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mou

nt

Fair

valu

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Oth

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Des

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ted

Loan

s an

d fin

anci

al

at fa

ir A

vaila

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N

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les

liabi

litie

s va

lue

-for-s

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Tota

l Le

vel 1

Le

vel 2

Le

vel 3

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tal

$’00

0 $’

000

$’00

0 $’

000

$’00

0 $’

000

$’00

0 $’

000

$’00

0

A

utho

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31

Mar

ch 2

017

A

sset

s

Fi

nanc

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sset

s m

easu

red

at

fair

valu

e

Available-for-salefinancialasset

7–

––

763

763

––

763

763

Financialassetatfairvalue

throughprofitorloss

9–

–122,551

–122,551

–46,937

75,614

122,551

–

–122,551

763

123,314

Fina

ncia

l ass

ets

not m

easu

red

at

fair

valu

e

Cashandcashequivalents

81,109,283

––

–1,109,283

Tradeandotherreceivables*

10

160,664

––

–160,664

Amountduefromasubsidiary

700

––

–700

1,270,647

––

–1,270,647

Liab

ilitie

s

Fi

nanc

ial l

iabi

litie

s no

t mea

sure

d

at fa

ir va

lue

Tradeandotherpayables

14

–109,446

––

109,446

Amountduetoasubsidiary

–

10,000

––

10,000

–119,446

––

119,446

*excludesprepayments

FS44

29 SUBSEQUENT EVENT

On31May2017,theAuthorityissued1,700,000sharesof$1persharetofundtransitionalexpensesincurredasaresultof therestructuringofMDAandIDAtoformIMDAandGovernmentTechnologyAgency.Thesharesissuedareheldbythe MinisterforFinance,incorporatedbytheMinsterforFinance(Incorporation)Act.Theholdersofthesesharesareentitled toreceivedividendsasandwhendeclaredbytheAuthority.Thesharescarrynovotingrightsandhavenoparvalue.

Subsequent to the share issuance on 31 May 2017, the Authority has share capital of $2,901,000 which comprises 2,901,000shares.

30 COMPARATIVE INFORMATION

NocomparativefigureshavebeenpresentedasthisisthefirstsetoffinancialstatementspreparedbytheGroupsincethe dateofitsestablishmentwiththerestructuringofMDAandIDAtoformIMDAandGovernmentTechnologyAgency.


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