Page 29 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 3. Financial Risk Management (Continued) (c) Market risk (continued) Interest rate risk (continued) The University’s main interest rate risk arises from investment securities. Government of Jamaica investments, which mainly have maturities greater than one year, are fixed rate instruments and are classified as amortised cost. The University’s shorter-term investments are also at fixed rates and are classified as amortised cost securities. The University’s investments therefore do not expose it to interest rate risk. The University also earns interest on its securities purchased under resale agreements as disclosed in Note 18. As these deposits have a short term to maturity and are constantly reinvested at current market rates, they are not significantly exposed to interest rate risk. (d) Capital management The University does not have any stated share capital. The University however has reserves consisting of appropriated surplus and unappropriated surplus. The University is not subject to any externally imposed capital requirements. University of Technology, Jamaica 145
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