Page 145 - Annual Report 2014

Notes to the Financial Statements

Year ended 31 December 2014

2.17 Government grants

Government grants received, which are designated for the purchase of property, plant and equipment, are accreted to the
income statement on a straight-line basis over the estimated useful lives of the related assets, so as to match the related
depreciation expense.

Government grants received, which are designated for operating expenditure, are recognised on a systematic basis in the
income statement over the periods necessary to match the related cost which they are intended to compensate.

2.18 Marketing and promotions

Advertising costs are expensed when incurred. The direct costs of acquiring customers, including commission and promotion
expenses, are recognised in the income statement when incurred.

2.19 Operating leases

Where the Group has the use of assets under operating leases, payments made under the leases are recognised in the income
statement on a straight-line basis over the terms of the lease. Lease incentives received are recognised in the income statement
as an integral part of the total lease payments made. Contingent rentals are charged to the income statement in the accounting
period in which they are incurred.

2.20 Income taxes

Income taxes comprise current tax and deferred tax. Income taxes are recognised in the income statement except to the extent
that it relates to items recognised directly in equity, in which case such tax is recognised in equity, or in other comprehensive
income.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at
the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised in respect of temporary differences at the balance sheet date arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements.

Deferred tax is provided based on the expected realisation or settlement of the temporary differences, using tax rates enacted or
substantively enacted at the reporting date.

Deferred tax assets and liabilities are not recognised for the following temporary differences: the initial recognition of goodwill,
the initial recognition of assets or liabilities in a transaction other than a business combination that affects neither accounting
nor taxable profit, and differences relating to investments in subsidiaries to the extent that it is probable that they will not
reverse in the foreseeable future.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profit will be available against which
the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised.

2.21 Dividends

Interim dividends to the Company’s shareholders are recognised in the financial year in which they are declared payable.
Final dividends to the Company’s shareholders are recognised in the financial year in which the dividends are approved by the
shareholders.

2.22 Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into Singapore dollars at exchange rates approximate to
those ruling at the reporting date. Transactions in foreign currencies are translated at rates ruling on transaction dates. The
translation differences arising from such transactions are included in the income statement.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into
Singapore dollars at the exchange rate at the date on which fair value was determined.

142 many lives of hubbing