90 / 100
H
PROVISIONS
- Provisions are recognisedwhen the Commission has a present obligation (legal or constructive) as
a result of a past event, it is probable that the Commission will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
I
GOVERNMENT GRANTS
- Government grants are recognised when there is a reasonable assurance that the
Commission will comply with the conditions attached to them, and that the grants will be received.
Government grants for the purchase of depreciable assets are taken to the Deferred Capital Grants account.
Deferred capital grants are recognised in the statement of profit or loss and other comprehensive income over
the periods necessary tomatch the depreciation of the assets financed with the related grants. On disposal of the
assets, the balance of the related grants is recognised in the statement of profit or loss and other comprehensive
income to match the net book value of assets disposed.
Other government grants are recognised as income over the periods necessary to match the expenditure for
which they are intended to compensate, on a systematic basis.
J
REVENUE RECOGNITION
- Revenue is measured at the fair value of the consideration received or receivable.
Application fees
Application fees income is recognised when the
service is provided.
Interest income
Interest income is accrued on a time-proportion
basis, by reference to the principal outstanding and
at the effective interest rate applicable.
K
FINANCIAL PENALTIES
- Financial penalties are imposed on undertakings found to have infringed the prohibitions
under the Competition Act, Chapter 50B. The financial penalties collected are transferred to the Consolidated Fund
upon receipt and are not included in the financial statements of the Commission.
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 dealtwithas payments todefined contributionplanswhere theCommission’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.
NOTES TO FINANCIAL STATEMENTS
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONT’D)
31 MARCH 2016
88
FINANCIAL STATEMENTS
CCS ANNUAL REPORT 2015-2016