83
A N N U A L R E P O R T 2 0 1 6
For the Financial Year Ended 31 March 2016
NOTES TO THE
FINANCIAL STATEMENTS
2.
Summary of significant accounting policies (cont¡¯d)
2.18
Employee benefits
(a)
Defined contribution plans
The Group participates in the national pension schemes as defined by the laws of the countries in which it has operations. In
particular, the Singapore companies in the Group make contributions to the Central Provident Fund (
¡°CPF¡±
) scheme in Singapore, a
defined contribution pension scheme. Contributions to defined contribution schemes are recognised as an expense in the period in
which the related service is performed.
(b)
Employee leave entitlement
Employee entitlements to annual leave are recognised as a liability when they are accrued to the employees. The estimated liability
for leave is recognised for services rendered by employees up to the end of the reporting period.
2.19
Leases
As lessee
Finance leases which transfer to the Group substantially all the risks and rewards incidental to ownership of the leased item, are capitalised
at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Any initial
direct costs are also added to the amount capitalised. Lease payments are apportioned between the finance charges and reduction of the
lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit or
loss. Contingent rents, if any, are charged as expenses in the periods in which they are incurred.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no
reasonable certainty that the Group will obtain ownership by the end of the lease term.
Operating lease payments are recognised as an expense in profit or loss on a straight line basis over the lease term. The aggregate benefit
of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight line basis.
