ANNUAL REPORT 2015
55
Notes to the Combined
Financial Statements
As at 30 September 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Management fees
Revenue from management contracts is recognised over the management period when the services are rendered.
Dividend income
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
Sponsorship income
Sponsorship income from suppliers is recognised when the rights to receive payment have been established.
Sale of rewards card
Sale of rewards card is recognised as income on a straight-line basis over the membership period.
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 Group’s obligations under the plans are equivalent to those arising in a defined
contribution retirement benefit plan.
BORROWING COSTS - Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary
investment of specific borrowings pending their expenditure on qualifying assets is reduced from the borrowing costs eligible for
capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
EMPLOYEE LEAVE ENTITLEMENT - Employee entitlements to annual leave are recognised when they are accrued 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 financial
year.
CASH AND CASH EQUIVALENTS - Cash and cash equivalents comprise cash at bank and on hand and fixed deposits, which are subject
to an insignificant risk of changes in value.
CLUB MEMBERSHIP - This comprises of investment in club membership which is stated at cost less any impairment in net recoverable
value that has been recognised in profit or loss.
INCOME TAX - Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the combined statement
of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are not taxable or tax deductible. The Group’s liability for current tax is calculated using tax rates
(and tax laws) that have been enacted or substantively enacted in countries where the Company and subsidiaries operate by the end of
the financial year.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such
assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
