Page 22 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 3. Financial Risk Management (Continued) (a) Credit risk (continued) Credit review process (continued) Exposure to credit risk for investments The following table summarises the University’s credit exposure for investments at their carrying amounts, as categorised by issuer: 2020 $’000 2019 $’000 Government of Jamaica 247,133 330,955 Financial institutions 1,575,674 1,850,084 1,822,807 2,181,039 The following table sets out the staging of the University’s financial assets, exposed to credit risk, and shows their maximum exposure to credit risk. The amounts shown in the tables reconcile to the carrying values as shown in the financial statements. There were no financial assets that were purchased credit impaired. There were also no movements in between stages for the assets which were held during the financial year. Reverse repurchase agreements are limited to high credit quality financial institutions. Accordingly, management does not expect any counterparty to fail to meet its obligations. All investment instruments at amortised costs are considered to have low credit risk. ECL Staging 2020 12-month ECL Stage 2 – Lifetime ECL Stage 3 – Lifetime ECL Total $’000 $’000 $’000 $’000 As at 31 March Reverse Repurchase at amortised cost 1,575,674 - - 1,575,674 Debt securities at amortised cost 247,133 - - 247,133 Gross carrying amount 1,822,807 - - 1,822,807 ECL (1,543) - - (1,543) Gross carrying amount, net of ECL 1,821,264 - - 1,821,264 Amount recognized in the statement of comprehensive income is $1,543,000 (2019 - $84,000). University of Technology, Jamaica 138
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