Sustainability and Governance Report
Notes to the FINANCIAL STATEMENTS
Not
2. Summary of significant accounting policies (cont'd)
2.18 Employee benefits
(a) Defined contribution plan
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 scheme in Singapore, a defined contribution pension scheme. Contributions to national 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 are accrued to employees. The estimated liability for leave is recognised for services rendered
by employees up to the end of the reporting period.
2.19 Leases
These accounting policies are applied on and after the initial application date of SFRS(I) 16, 1 April 2019:
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.
(a) As lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises
lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets as follows:
Office premises
Warehouse
Retail outlets
Motor vehicle
1-3 years
3 years
1-3 years
3 years
The right-of-use assets are also subject to impairment. Refer to Note 2.8 Impairment of non-financial assets.
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