NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
2.
Significant accounting policies (continued)
2.11 Provisions for other liabilities and charges
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the
amount of the obligation can be estimated reliably.
Provisions are reviewed at the balance sheet date and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the
effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage
of time is recognised as a finance cost.
2.12 Employee compensation
(a)
Defined contribution plans
The Company makes 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.
(b)
Employee leave entitlement
Employee entitlements to annual leave are recognised as a liability when they accrue to employees. The estimated
liability for leave is recognised for services rendered by employees up to the balance sheet date.
2.13 Currency translation
(a)
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment
in which the Company operates (¡°the functional currency¡±). The Company¡¯s financial statements are presented in
Singapore Dollars (¡°SGD¡±), which is also the Company¡¯s functional currency.
(b)
Transactions and balances
Transactions in currencies other than the functional currency (¡°foreign currency¡±) are translated into the functional
currency using the exchange rates at the dates of the transactions. Currency translation differences from the
settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign
currencies at the closing rates at the balance sheet date are recognised in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates as at the dates of the initial transactions. Non-monetary items that are measured at fair values in
foreign currencies are translated using the exchange rates at the date when the fair values are measured. Currency
translation differences on non-monetary items whereby the gains or losses are recognised directly in equity, such
as equity investments classified as available-for-sale financial assets are included in the fair value reserve.
.172
ASCENDAS india trust ANNUAL REPORT
2015/2016
