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NOTES TO THE
FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2015

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:

• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss;

• temporary differences relating to investments in subsidiaries and associate to the extent that the Group is able to control
the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable
future;

• taxable temporary differences on the initial recognition of goodwill.

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 dividend to the Company’s shareholders is recognised in the financial year in which the dividend is 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.