Workplace Safety & Prevention Services 2012 Annual Report
36
December 31, 2012
Workplace Safety & Prevention Services
Notes to Financial Statements
26. Financial Instruments
Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party
by failing to discharge an obligation. The Association's financial instruments that are exposed to
concentrations of credit risk relate primarily to cash, short term investments and accounts receivable.
The Association manages its exposure to this risk by maintaining its cash and investments with a major
Schedule I bank and where feasible obtaining prepayment for courses held. Accounts receivable is
shown net of an impairment allowance of $382,594 (2011 – $482,594).
Liquidity Risk
Liquidity risk is the risk that the Association encounters difficulty in meeting its obligations associated
with financial liabilities. Liquidity risk arises from accounts payable and accrued liabilities, vacation
payable, attendance credits, exit benefits, deferred WSIB surplus, employee future benefits and
commitments. The Association continues to focus on maintaining adequate liquidity to meet operating
working capital requirements and capital expenditures.
27. Comparative Figures
Certain comparative figures have been reclassified to conform to the presentation adopted in the
current year.
