NTUC Income AR 2018

Notes to the Financial Statements For the Financial Year Ended 31 December 2018 34. Temporary Exemption from FRS 109 (continued) (ii) The carrying amounts of financial assets by credit risk rating grades that are not classified as measured at fair value through profit or loss are as follows: 2018 Investment Grade (AAA to BBB-) $’000 Below Investment Grade (Below BBB-) $’000 Non-rated $’000 Total $’000 Fair value Amortised cost (“Hold to collect” business model) – loans – – 100,383 100,383 – other receivables – – 60,853 60,853 – cash and cash equivalents 644,554 – – 644,554 Total financial assets at amortised cost 644,554 – 161,236 805,790 Fair value through other comprehensive income (“Hold to collect and sell” business model) Debt securities 1,712,607 1,721 1,539,828 3,254,156 Total financial assets at fair value through other comprehensive income 1,712,607 1,721 1,539,828 3,254,156 Total fair value of financial assets 2,357,161 1,721 1,701,064 4,059,946 (iii) Financial assets with low credit risk are those which have a low risk of default, the issuer or borrower has a strong capacity to meet its contractual cash flow obligations in the near term and ability to fulfil its obligations may, but will not necessarily, be reduced by adverse changes in economic and business conditions in the long term. For financial assets that do not have low credit risk as at 31 December 2018, the fair value and the carrying amount under FRS 109 are as follows: 133 2018 ANNUAL REPORT