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On Top of Our Game 80
Financial Statements
Notes to Financial Statements
31 March 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(l) RETIREMENT BENEFIT COSTS - Payments to defined contribution retirement benefit plans are charged
as an expense as they fall due. Payments made to state-managed retirement benefit schemes, such as
the Singapore Central Provident Fund, are dealt with as payments to defined contribution plans where
the Commission’s obligations under the plans are equivalent to those arising in a defined contribution
retirement benefit plan.
(m) EMPLOYEE LEAVE ENTITLEMENT - Employee entitlements to annual leave are recognised when they
accrue to employees. A provision is made for the estimated liability for annual leave as a result of services
rendered by employees up to the end of the reporting period.
(n) CONTRIBUTION TO CONSOLIDATED FUND - Under Section 13(1)(e) and the First Schedule of the
Singapore Income Tax Act, Chapter 134, the income of the Commission is exempted from income tax.
In lieu of income tax, the Commission is required to make contribution to the Government Consolidated
Fund in accordance with the Statutory Corporations (Contributions to Consolidated Fund) Act, Chapter
319A. The provision is based on the guidelines specified by the Ministry of Finance. It is computed based
on the net surplus of the Commission for each of the financial year at the prevailing corporate tax rate for
the Year of Assessment. Contribution to consolidated fund is provided for on an accrual basis.
(o) CASH AND CASH EQUIVALENTS - Cash and cash equivalents comprise cash balances, bank deposits
and deposits placed with the Accountant-General’s Department.
Financial Statements
Notes to Financial Statements
31 March 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(l) RETIREMENT BENEFIT COSTS - Payments to defined contribution retirement benefit plans are charged
as an expense as they fall due. Payments made to state-managed retirement benefit schemes, such as
the Singapore Central Provident Fund, are dealt with as payments to defined contribution plans where
the Commission’s obligations under the plans are equivalent to those arising in a defined contribution
retirement benefit plan.
(m) EMPLOYEE LEAVE ENTITLEMENT - Employee entitlements to annual leave are recognised when they
accrue to employees. A provision is made for the estimated liability for annual leave as a result of services
rendered by employees up to the end of the reporting period.
(n) CONTRIBUTION TO CONSOLIDATED FUND - Under Section 13(1)(e) and the First Schedule of the
Singapore Income Tax Act, Chapter 134, the income of the Commission is exempted from income tax.
In lieu of income tax, the Commission is required to make contribution to the Government Consolidated
Fund in accordance with the Statutory Corporations (Contributions to Consolidated Fund) Act, Chapter
319A. The provision is based on the guidelines specified by the Ministry of Finance. It is computed based
on the net surplus of the Commission for each of the financial year at the prevailing corporate tax rate for
the Year of Assessment. Contribution to consolidated fund is provided for on an accrual basis.
(o) CASH AND CASH EQUIVALENTS - Cash and cash equivalents comprise cash balances, bank deposits
and deposits placed with the Accountant-General’s Department.
