CCS Annual Report 2015-2016

of ownership and continues to control the transferred asset, the Commission recognises its retained interest in

the asset and an associated liability for amounts it may have to pay. If the Commission retains substantially all

the risks and rewards of ownership of a transferred financial asset, the Commission continues to recognise the

financial asset and also recognises a collateralised borrowing for the proceeds received.

FINANCIAL LIABILITIES AND EQUITY INSTRUMENTS

Classification as debt or equity

Financial liabilities and equity instruments issued by the Commission are classified according to the substance

of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity instruments

Anequity instrument isanycontract that evidencesa residual interest in theassetsof theCommissionafterdeducting

all of its liabilities. Equity instruments are recorded at the proceeds received, net of significant direct issue costs.

Pursuant to the Finance Circular Minute (“FCM”) No. 26/2008 on Capital Management Framework (“CMF”), equity

injection from the Government is recorded as share capital.

Other financial liabilities

Trade and other payables and amount are initially measured at fair value, net of transaction costs and are

subsequently measured at amortised cost, using the effective interest method except for short-term balances

when the recognition of interest would be immaterial.

Derecognition of financial liabilities

The Commission derecognises financial liabilities when, and only when, the Commission’s obligations are

discharged, cancelled or they expire.

LEASES

- Leases are classified as finance leases whenever the terms of the lease transfer substantially all the

risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The Commission as lessee

Rentals payable under operating leases are charged to income or expenditure on a straight-line basis over the

term of the relevant lease unless another systematic basis is more representative of the time pattern in which

economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are

recognised as an expense in the period in which they are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as

a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line

basis, except where another systematic basis is more representative of the time pattern in which economic

benefits from the leased asset are consumed.

PLANT AND EQUIPMENT

- These are stated at cost less accumulated depreciation and any accumulated

impairment losses.

NOTES TO FINANCIAL STATEMENTS

31 MARCH 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(CONT’D)

FINANCIAL STATEMENTS

CCS ANNUAL REPORT 2015-2016