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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 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.
3.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Commission’s accounting policies, which are described in Note
2, management is required to make judgements, estimates and assumptions about the
carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.
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 to match 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
NOTES TO FINANCIAL STATEMENTS
31 March 2017
ANNUAL REPORT 2016
69