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ON A RAPID RISE
NOTES TO
FINANCIAL STATEMENTS (CONT’D)
31 March 2015
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.9 Employee benefits
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions
to a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations
for contributions to defined contribution plans are recognised as an employee benefit expense in the profit
or loss in the periods during which services are rendered by employees.
Short-term employee benefits
Short-term employee benefit obligations, including accumulated compensated absences, are measured
on an undiscounted basis and are expensed as the related services are provided.
2.10 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of
a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be measured reliably.
2.11 Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the profit
or loss except to the extent that it relates to items recognised directly in equity or in other comprehensive
income, in which case it 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.
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