Download PDF (619 ko )FSST and CSST Financial Statements 2007
Download PDF (619 ko )FSST and CSST Financial Statements 2007
Download PDF (619 ko )FSST and CSST Financial Statements 2007
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18. Related Party Transactions<br />
<strong>FSST</strong> <strong>Financial</strong> <strong>Statements</strong><br />
The <strong>FSST</strong> is related to the <strong>CSST</strong>, its trustee, to the IRSST, which is controlled by the <strong>CSST</strong>, <strong>and</strong><br />
to joint sector-based associations, which are significantly influenced by the <strong>CSST</strong>. The <strong>FSST</strong> did not<br />
conclude any commercial transaction with these related parties other than in the normal course of<br />
its activities <strong>and</strong> under the usual commercial conditions. These related party transactions, accounted<br />
for at exchange value, are presented in these financial statements.<br />
19. <strong>Financial</strong> Instruments<br />
Management of risks related to financial instruments<br />
<strong>CSST</strong> management has implemented the policies <strong>and</strong> procedures required to manage <strong>and</strong> control<br />
the risks inherent in financial instruments.<br />
Market risk <strong>and</strong> concentration risk<br />
Market risk corresponds to the financial loss the <strong>FSST</strong> may incur due to adverse changes in the<br />
value of financial instruments, resulting from changes in the variables underlying their valuation,<br />
in particular interest rates, exchange rates <strong>and</strong> share prices.<br />
Concentration risk arises where investments are made with a single entity.<br />
The major risk in this regard concerns the fluctuation in the funds wholly deposited with the<br />
Caisse de dépôt et placement du Québec. To manage these risks, the <strong>CSST</strong> follows an investment<br />
policy designed to optimize the return on the individual fund, while ensuring a level of risk that is<br />
acceptable for the <strong>FSST</strong>.<br />
Liquidity risk<br />
Liquidity risk represents the possibility that the <strong>FSST</strong> may not be able to raise, in a timely manner<br />
<strong>and</strong> under reasonable conditions, the funds needed to meet its financial commitments.<br />
To deal with this risk, the liquidity requirements of the <strong>FSST</strong> are forecast on a daily basis <strong>and</strong><br />
the necessary transfers are carried out with the Caisse de dépôt et placement du Québec. The <strong>FSST</strong><br />
can also draw on a $450-million line of credit with the Caisse de dépôt et placement du Québec<br />
to meet its liquidity requirements. Additionally, the <strong>FSST</strong> has access to a $10-million line of credit<br />
with a financial institution.<br />
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