Summarize the pros and cons of judgmental and empirically based credit evaluation systems. What would you recommend? Would your recommendation change if you were evaluating Singapore Airlines for a loan during the COVID-19 pandemic? No calculations are required but your answer must relate to the Statement of Financial Position presented.

SINGAPORE AIRLINES ANNUAL REPORT FY2020/21 113 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021 (IN $ MILLION) The Group 31 March 2021 The Company 31 March 2021 Notes 2020 2020 1,856.1 1,856.1 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Share capital Mandatory convertible bonds Treasury shares Other reserves 13 14 15 16 7,180.2 3,496.1 (133.2 5,362.8 15,905.9 372.2 16.278.1 7,180.2 3,496.1 (133.2) 5.968.8 16,511.9 (156.0) 7,162.6 8,862.7 17 18 NON-CONTROLLING INTERESTS TOTAL EQUITY DEFERRED ACCOUNT DEFERRED TAXATION LONG-TERM LEASE LIABILITIES BORROWINGS OTHER LONG-TERM LIABILITIES PROVISIONS DEFINED BENEFIT PLANS (156.0) 7,614.0 9,314.1 418.6 9,732.7 33.3 1,335.3 1,467.6 7,162.9 1,875.7 990.7 112.5 22,710.7 41.0 1,032.5 2,373.6 10.564.8 506.4 965.1 106.6 31,868.1 19 20 21 16,511.9 41.0 1,018.9 1.976.1 10,2643 496.3 387.1 106.1 30,801.7 8,862.7 33.3 1,2922 700.6 6,810.3 1,860.7 308.3 111.9 19,980.0 23,483.3 2.395.7 301.1 25,485.8 1,477.7 487.0 19,048.1 1,983.7 229.1 5,880.6 3323 323 46.6 495.9 20,315.6 745.7 216.6 4.769.9 120.3 32.3 54.8 167.4 833.1 200.2 49.9 646.0 817.0 191.5 65.2 345.7 29 156.8 1949 939.5 169.3 239.3 820.5 31 31 32 Represented by: PROPERTY, PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS INTANGIBLE ASSETS SUBSIDIARY COMPANIES ASSOCIATED COMPANIES JOINT VENTURE COMPANIES LONG-TERM INVESTMENTS OTHER LONG-TERM ASSETS CURRENT ASSETS Derivative assets Inventories Trade debtors Amounts owing by subsidiary companies Deposits and other debtors Prepayments Other short-term assets Investments Cash and bank balances Assets held for sale Less: CURRENT LIABILITIES Borrowings Lease liabilities Current tax payable Trade and other creditors Amounts owing to subsidiary companies Sales in advance of carriage Deferred revenue Deferred account Derivative liabilities Provisions 117.3 80.7 29.4 271.8 7,783.0 98.6 9,672.0 330.8 121.1 38.9 423.5 2,685.3 14.2 4,842.9 156.8 145.3 753.9 12.5 68.5 61.5 20.9 216.5 7,512.1 25.2 8,973.2 169.3 168.4 440.5 200.4 297.7 85.1 30.3 375.3 2,521.9 22 4,288.9 19 907.1 491.4 95.4 2,117.2 2.661.0 493.0 68.5 3,016.0 35 568.1 957.8 16.9 130.4 428.9 5,713.2 3,958.8 31,868.1 2,041.4 755.8 31.6 1,570.8 364.0 11,002.1 (6.159.2) 22,710.7 842.8 315.0 76.8 1,511.3 1.530.7 504.4 957.8 13.8 124.0 343.5 6,220.1 2,753.1 30,801.7 2,601.1 2737 39.2 2,250.5 1,021.5 1.888.3 755.8 29.7 1,565.2 306.5 10,731.5 (6.442.6) 19.980.0 21 NET CURRENT ASSETS/(LIABILITIES) The accompanying accounting policies and explanatory notes form an integral part of the financial statements