68
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.30 Segment reporting
For management purposes, the Group is organised into operating segments based on their products and services
which are independently managed by the respective segment managers responsible for the performance of
the respective segments under their charge. The segment managers report directly to the management of the
Company who regularly review the segment results in order to allocate resources to the segments and to assess
the segment performance. Additional disclosures on each of these segments are shown in Note 28, including the
factors used to identify the reportable segments and the measurement basis of segment information.
2.31 Government grants
Government grants are recognised when there is reasonable assurance that the grant will be received and all
attaching conditions will be complied with. Where the grant relates to an asset, the fair value is recognised as
deferred capital grant on the balance sheet and is amortised to profit or loss over the expected useful life of the
relevant asset by equal annual instalments.
Government grants related to income
Government grant shall be recognised in profit or loss on a systematic basis over the periods in which the entity
recognises as expenses the related costs for which the grants are intended to compensate. Grants related to
income may be presented as a credit in profit or loss, either separately or under “Other income”.
2.32 Financial guarantee
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms
of a debt instrument.
Financial guarantees are recognised initially as a liability at fair value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee. Subsequent to initial recognition, financial guarantees are recognised
as income in profit or loss over the period of the guarantee. If it is probable that the liability will be higher than
the amount initially recognised less amortisation, the liability is recorded at the higher amount with the difference
charged to profit or loss.
2.33 Related parties
A related party is defined as follows:
(a)
A person or a close member of that person’s family is related to the Group and the Company if that person:
(i)
has control or joint control over the Company;
(ii)
has significant influence over the Company; or
(iii)
is a member of the key management personnel of the Group or Company or of a parent of the
Company;
