NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
56
ANNUAL REPORT 2015/2016
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.9
Employee benefits
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 within the Group make contributions to the Central Provident
Fund scheme in Singapore, a defined contribution pension scheme. Contributions to defined contribution pension
schemes are recognised as an expense in the period in which the related service is performed.
Employee leave entitlements
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.
Equity compensation plan
Employees of the Group receive remuneration in the form of share-based payment transactions as consideration
for services rendered.
The cost of equity-settled share-based payment transactions with employees is measured by reference to the fair
value of the equity-settled awards at the date on which the awards are granted which takes into account market
conditions and non-vesting conditions. This cost is recognised in profit or loss, together with a corresponding
increase in the employee equity benefit reserve, over the vesting period. The cumulative expense recognised
at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the
Group’s best estimate of the awards that will ultimately vest. The charge or credit to profit or loss for a period
represents the movement in cumulative expense recognised as at the beginning and end of that period and is
recognised in employee benefits expense.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market or non-vesting condition, which are treated as vested irrespective of whether or not the market
or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.
In the case where the awards do not vest as the result of a failure to meet a non-vesting condition that is within
the control of the Group or the employee, it is accounted for as a cancellation. In such case, the amount of the
compensation cost that otherwise would be recognised over the remainder of the vesting period is recognised
immediately in profit or loss upon cancellation. The employee equity benefit reserve is transferred to retained
earnings upon expiry of the awards. The employee equity benefit reserve is transferred to share capital if new
shares are issued to settle the awards, or to treasury shares if awards are satisfied by the reissuance of treasury
shares. When the equity-settled awards issued by subsidiaries are exercised, the employee equity benefit reserve
is transferred to non-controlling interests.
