financial reporting matters · 2020. 4. 8. · revised frs 103 (2 . 2 . b. a. revised frs 103 ....

AUDIT

21

FINANCIAL REPORTTING MATTERS DECEMBER 2010 ISSUE 33 | MICA (P) 177112010

In this year-end issue we provide an overview oof changes in financial reporting standards for 2010 and introduce those changes that will bec ome effective in 2011 We also summarise the amendments in the newly issued Improvemments to FRSs 2010 and the proposed changes to the accounting for leases

In addition we feature a tax incentive scheme tthat was introduced this year and discuss how businesses can take advantage of the Prodductivity and Innovation Credit scheme

Overview of 2010 ch anges in FRSs

02 WWe summarise the rrequirements of each nnew or revised sstandard that are eeffective in 2010 ccalendar year-end

Improvements to FRRSs 2010

18 WWe set out a brief ssummary of each of tthe amendments and hhighlight those that mmmay be worth may be worth aadopting earlier

Other local developmments

2727 WWe summarise the ccchanges in legislation changes in legislation aand other regulatory ddevelopments that hhave an impact on ffinancial reporting

Lease accounting in the future

09 We explain how the proposed requirements will be applied the likely impact on the financial statements and the potential tax implications in Singapore

Productivity and Innovation Credit scheme

23 We provide the details of this tax credit scheme and explain how it can benefit businesses

International developments

2929 We summarise the new exposure drafts new exposure drafts and standards issued by the IASB and other developments affecting current and future IFRS reporters

copy 2010 KPMG LLP (Registrationn No T08LL1267L) an accounting limited liability partnership registered in Singapore under the Limited Liability Partnership Act (Chapte r 163A) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMMG Internationalrdquo) a Swiss entity All rights reserved Printed in Singapore

Revised FRS 103 (2

2

A

Revised FRS 103 Business Combinations (2009) and FRS 27 Separate and Consolidated Financial Statements (2009)

Effective Annual periods beginning from 1 July 2009

Refer to Financial Reporting Matters ndash September 2009 for details

Financial Reporting Matters

Overvieww of 2010 changes in Financial Reporting Standards

In this section we summarise the new and revised FRSs that are effectivve for the first time for a company with an p y annual period eending 31 December 2010 We have also included those that are issued but not effective for entities to consider the impact of these changes for the coming financial reportiing period

New FRSs effeective for annual financial periods beginning on 1 January 22010

009) and FRS 27 (2009) apply to acquisition accounting for business combinatioons While the approach taken in FRS 103 (2009) and FRS 27 (2009) does not invoolve a fundamental change in the model for accounting for business combinatioons and non-controlling interests there can be changes to its practice

The key changes incclude the following bull Most transactioon costs will be recognised as an expense bull Purchases and sales of non-controlling shareholdings when control is

retained should be accounted for fully as equity transactions without impact to the income stateement

bull The practicabiliity exception to fair value measurement of identifiable intangible assetss is eliminated

bull Any pre-existinng interests in an acquired company will be remeasured to fair value at the acquisition date with any gain or loss recognised in profit or loss

bull Any retained innterest in a previously-consolidated subsidiary is remeasured to ffair value through profit or loss when control over the subsidiary is lostt

bull Any settlementt of pre-existing business relationships that are effected at th ti f th purchhase be account d f ted for outtsid ide of the bbusinessthe time of the p b f th i combination

bull Contingent connsideration is measured at fair value at the acquisition date Generally subseequent changes will be recognised in profit or loss if the contingent consideration is classified as a liability

Find out more IFRS Handbook Business Combinations and Non-controlling IFRS Handbook Business Combinations and Non controlling Interests is a publication produced by KPMG International Standards Group

This publication provides a comprehensive analysis of IFRS 3 (2008) Business Combinations and accounting for non-controlling interests under IAS 27 (2008) Consolidated and Separate Financial Statements It includes extensive interpretative guidance and illustrative examples to elaborate interpretative guidance and illustrative examples to elaborate or clarify the practical application of IFRS 3 and IAS 27

Printed copies of th is publication are available at a charge of S$230 (exclusive of GST at the prevailingg rate)


FRS 103 (2009) whi

3 Financial Reporting Matters

INT FRS 117 Distributions of Non-cash Assets to Owners


Refer to Financial Reporting Matters ndash March 2009 for details

Amendments to FRS 102 Share-based Payment ndash Group Cash-settled Share-based Payment Transactions

Eff Effectitive Annuall periiodds beginningA b i i from 1 January 2010

Refer to Financial Reporting Matters ndash December 2009 for details

Improvements to FRSs for 2009

Effective Annual periods beginning from 1 January 2010


Amendment to FRS 39 Financial Instruments Recognition and Measurement (Issue of additional Application Guidance on Eligible Hedged Items)


Refer to IFRS Briefing Sheet ndash Issue 100 for details

INT FRS 117 requirees entities to recognise certain distributions of non-cash assets at fair value and to recognise in profit or loss the difference between the fair value of the ass ets distributed and their carrying amounts

The interpretation a pplies to non-reciprocal distributions of non-cash assets to owners acting in theeir capacity as owners in which all owners of the same class of equity are treatedd equally

This interpretation ddoes not apply to common control transactions

The amendments p rovide guidance on accounting for group cash-settled share-based payment trannsactions from the perspective of the receiving entity as well as the settling entityy

The amendments reequire an entity receiving goods or services in either an equity-settled or cash-settled payment transaction to account for the transaction in its separate or individuaal financial statements

As a result of the ammendments INT FRS 108 Scope of FRS 102 and INT FRS 111 FRS 102 ndash Group annd Treasury Share Transactions are incorporated into FRS 102 and withdrawn

Improvements to FRRSs for 2009 is the result of the second annual improvement project It contains 115 amendments to 12 FRSs that result in accounting changes for presentation reccognition measurement or disclosure purposes

Five of these amenddments are effective for annual periods beginning on or after 1 July 2009 as they are largely consequential changes made with the revised

ch is effective from 1 Julyy 2009 The remainingg amendments are generally effectiive for annual periods beginning on or after 1 January 2010

Additional Applicatioon Guidance has been issued to clarify how the existing principles underlyingg hedge accounting should be applied in two particular situations

(a) A one-sided riskk in a hedged item The amendments cl arify that an entity can designate a one-sided risk of a hedged item in a hedging re lationship ie it could designate only changes in the cash flows or fair value off a hedged item above (or below) a specified price or other variable This would improve hedge effectiveness particularly for a purchased option used as the hhedging instrument in a cash flow hedge of a highly probably forecast transaction

An example of hedgAn example of hedg ging a one-sided risk is when an entity hedges against theging a one sided risk is when an entity hedges against the increase (but not thee decrease) in the price of a forecast commodity purchase above a specified prrice It is the increase above the specified price that is designated as the heedged risk


4

e


AAmenddment to FRS 39 FinanciialFRS 39 Fi l Instruments Recognition and Measurement (Issue of additional Application Guidance on Eligible Hedged Items) (continued)



Revised FRS 101 First-time Adoption of Financial Reporting Standards of Financial Reporting Standards (improved structure)


Amendments to FRS 101 ndash Additional Exemptions for First-time Adopters



B

Amendment to FRS 32 Financial Instruments PresentationInstruments Presentation ndash Classification of Rights Issues

Effective Annual periods beginning from 1 February 2010


(b) Inflation in a finnancial hedged item Inflation generally caannot be designated as the hedged risk as it is not separately identifiable or reliablly measurable except where it is a contractually specified portion of the cash fflows of a recognised inflation-linked bond and the other cash flows of the instrumment are not affected by the inflation portion

For example changees in fair value of a 7 fixed rate bond caused by inflation is not separately ident not separately ident ifiable or reliably measurable Conversely the inflation portion ifiable or reliably measurable Conversely the inflation portion of a bond that carriees interest at 3 plus inflation can be separately identifiable and reliably measuraable

The revised version of FRS 101 restructures the format without changing its technicaltechnical contentcontent TThe objecti as to make FRS 101 easier for readers to he objective was to make FRS 101 easier for readers to understand

The revised version moves the exemptions and exceptions contained in the main body of FRS 101 to different appendices It also removes FRS 101 transitional provisionns that are no longer considered relevant

The amendments exxempt bull entities using th e full cost method from retrospective application of

FRSs for oil and gas assets bull entities with exissting leasing contracts from reassessing the

classification of those contracts in accordance with INT FRS 104 Determining whhether an Arrangement contains a Lease when the application of theeir national accounting requirements produced the same result

New FRSs nott yet effective [1]

This amendment adddresses the accounting for rights issues (rights options and t ) hi h ddenominatted id i n a currency othther than ththe functi tionall currencywarrants) which are i th f

of the issuer

Previously such righhts issues were accounted for as derivative liabilities The amendment requires that rights issues to acquire a fixed number of the entityrsquos own equity instrumeents for a fixed amount of any currency are equity instruments if the e ntity offers the rights options or warrants pro rata to all of its existing owners of t the same class of its own nonthe same class of its own non-derivative equity instruments derivative equity instruments existing owners of t This is regardless off the currency in which the exercise price is denominated

[1] This is from the perspeective of a company with an annual financial period beginning 1 January 2011

copy 2010 KPMG LLP (Registration No T08LL1267L) an accounting limited liability partnership registered in Singapore under the Limited Liability Partnership Act (Chapterr 163A) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPM G Internationalrdquo) a Swiss entity All rights reserved Printed in Singapore


INT FRS 119 Extinguishing Financial Liabilities with Equity Instruments




Effective Annual periods beginning from 1 July 2010 and 1 January 2011

Refer to page 18 of this publication for details

Amendment to FRS 101 First-time Adoption of Financial Reporting Standards - Limited Exemption from Comparatives FRS 107 Disclosures for First-time Adopters



INT FRS 119 provid es guidance on how to account for the extinguishment of a financial liability by tthe issue by equity instruments These transactions are often referred to as lsquodebt for equity swapsrsquo

bull Equity instruments issued to a creditor to extinguish part or all of a financial liability would bee ldquoconsideration paidrdquo in accordance with paragraph 41 of FRS 39 Financial Insttruments Recognition and Measurement

bull The equity instruuments would be measured initially at the fair value of those equity instruments unless that fair value cannot be reliably measured in which case the equity instruments should be measured to reflect the fair value of the financial liability extinguished

bull Any difference bbetween the carrying amount of the financial liability and the initial measuremment of the equity instruments would be recoggnised as a gainq y g

or loss in profit oor loss

Improvements to FRRSs for 2010 is the result of the third annual improvement project It contains 111 amendments to seven FRSs that result in accounting changes for presenttation recognition measurement or disclosure purposes

FFour o f th f these amen ddmentts are effffectitive ffor annuall periiodds bbegiinniing on or aftfter 1 July 2010 as they are largely consequential changes made with the revised FRS 103 which is effective from 1 July 2009 The remaining amendments are generally effective ffor annual periods beginning on or after 1 January 2011

In this issue of Financial Reporting Matters we highlighted two amendments that may be worth early--adopting in 2010 For standards that are adopted early entities are remindeentities are remindeed to make appropriate disclosures in their financial ed to make appropriate disclosures in their financial statements

FRS 101 was amendded to provide to first-time adopters the same relief from the requirement to provvide comparative period disclosures for the information required to be presented by thee amendments to FRS 107 Financial Instruments ndash Improving Disclosures about F Financial InstrumentsFinancial Instruments as it had to existing FRS reporters as it had to existing FRS reporters In that Disclosures about F In that way first-time adoppters are not disadvantaged as compared with current FRS reporters

The amendments too FRS 107 require enhanced disclosures of financial instruments measured at fair value to be based on a three-level fair value hierarchy that reflects the significance of the innputs in such fair value measurements

As a consequence oof the amendment to FRS 101 the transitional provisions of the amendments to FRSS 107 were clarified In summary information for comparative periods ie periods before the amendments to FRS 107 become effective including an opening statemeent of financial position as at a date before 31 December 2009 need not comply with thee disclosures required by the amendments to FRS 107



FRS 24 (revised 2010) Related Party Disclosures



INT FRS 115 Agreements for the Construction of Real Estate (issued together with an Accompanying Note which is an integral part of and to be read toggether with INT FRS 115)



Amendments to INT FRS 114 FRS 19 ndash ThThe LiLimitit on a DDefifi ned B d Benefitfit Asset Minimum Funding Requirements and their Interaction ndash Prepayments of a Minimum Funding Requirement



Th i d t d dd ld clarifies ththe defi finition off a rellatted partty andd isimplifilifies theThe revised standard ifi d iti d th

disclosure requiremeents for government-related entities

The definition of a reelated party has been amended to remove inconsistencies and to make it symmetriical While the symmetry will make the standard more straight forward all entities will need to re-assess their related party relationships This may require thee collection and disclosure of additional information especially in respect of other in nvestments and roles of individual investors key management and roles of individual investors key managementin respect of other in nvestments personnel and their close family members

The revised standardd provides a partial exemption for government-related entities The standard still reqquires disclosures that are important to users of financial statements but elimminates requirements to disclose information that is costly to gather and of less vaalue to users Disclosure about these transactions is only required if they are i ndividually or collectively significant

INT FRS 115 providees guidance on the appropriate accounting standard to be applied when accou nting for revenue arising from agreements for the construction of real estate An entity shall account for the transaction under FRS 11 Constructionn Contracts or FRS 18 Revenue depending on whether the buyer is able to speccify the major structural elements of the design of the real estate before constr estate before constr ruction begins andor specify major structural changes once ruction begins andor specify major structural changes once construction is in proogress

INT FRS 115 also adddresses the timing of revenue recognition for agreements to construct real estatee Revenue arising from agreements for the construction of real estate is recognnised by reference to the stage of completion in accordance with FRS 11 in the f ollowing cases bull The aggreement mmeets the definition of a construction contract under FRS 11 bull The agreement i s only for rendering of services in accordance with FRS 18 bull The agreement i s for the sale of goods but meets all the recognition criteria

under FRS 18 coontinuously as construction progresses

The Accompanying Note of INT FRS 115 sets out the consensus that the sale of uncompleted residential property units in Singapore under the standard sale and purchase agreementts (as prescribed in the schedule to the Housing Developers Rules) would result in the transfer to the purchasers of the control and the significant risks and rewards of ownership of the uncompleted property units in their current state aas construction progresses Revenue is recognised by reference to the stagge of completion when all the other recognition criteria under FRS 1814 are met ccontinuously as construction progresses

The amendment to INT FRS 114 which is itself an interpretation of FRS 19 Employee Benefits applies in the limited circumstances when an entity is subject to minimum fundingg requirements (MFR) and makes an early payment of contributions to cov er those requirements The amendment permits such early payment to be recoggnised as an asset rather than an expense This is on the basis that the entity has a future economic benefit from the prepayment in the form of reduced cassh outflows in future years in which MFR payments would otherwise be requireed



C

IFRS for Small and Medium-sized Entities (SMEs)

Effective To be determined by the national regulator in each jurisdictionj


IFRS 9 Financial Instruments


Refer to IFRS Briefing Sheet ndash Issue 160 and 219 for details

Recently issueed IFRSs not yet adopted in Singapore [2]

IFRS for SMEs is intended to facilitate financial reporting for small and medium-sized (SMEs) entitiees by bull providing signiificantly less guidance than full IFRSs bull simplifying in certain areas the recognition and measurement

requirements coompared to full IFRSs bull removing the m more complex optionmore complex option in certain areas in which full IFRSs allow in certain areas in which full IFRSs allow bull removing the m

for more than onne accounting option

A summary of the kkey requirements in the IFRS for SMEs and the significant differences betweeen the IFRS for SMEs and existing IFRS requirements (full IFRS) is available in IFRS Briefing Sheet ndash Issue 144

On 12 November 20009 the IASB issued IFRS 9 (2009) as part of its comprehensive review of financial instruments accounting IFRS 9 (2009) deals with classification annd measurement of financial assets only It retains but simplifies the mixedd measurement model and establishes two primary measurement categgories for financial assets ndash amortised cost and fair value The basis of classificcation depends on the entityrsquos business model and the contractual cash floww characteristics of the financial asset

On 28 October 20100 the IASB issued a new version of IFRS 9 (IFRS 9 (2010)) IFRS 9 (2010) includdes all the requirements of IFRS 9 (2009) without amendment Howevver the new version of IFRS 9 also incorporates requirements with rrespect to the classification and measurement of financial liabilities and the de recognition of financial assets and financial liabilities Except as describedd below these requirements have been carried forward without amendmentt from IAS 39

As a result IFRS 9 h as been reformatted and renumbered The newly integrated guidance also includdes those paragraphs of IAS 39 dealing with fair value measurement and aaccounting for derivatives embedded in a contract that contains a host that is not a financial asset as well as the requirements of IFRIC 9 Reassessment of Embedded Derivatives Relevant questions and answers included in the Guidincluded in the Guid dance on Implementing IAS 39 have been copied across into dance on Implementing IAS 39 have been copied across into Guidance on Implemmenting IFRS 9 that accompanies the revised standard There are two substtantive changes from the requirements in IAS 39 for classification and m easurement of liabilities These relate to the fair value option and to certain derivaatives linked to unquoted equity instruments

The guidance in IASS 39 on impairment of financial assets and on hedge accountingg continuees to apply until all the reqquirements of IAS 39 have been pp y replaced The IASB expects this to occur during 2011

[2] As at 30 November 20110



Amendments to IFRS 7 FinancialAmendments to IFRS 7 Financial Instruments Disclosures ndash Transfers of Financial Assets


Refer to IFRS Briefing Sheet ndash Issue 216 for detailsdetails

The amendments to The amendments to o IFRS 7 introduce new disclosure requirements abouto IFRS 7 introduce new disclosure requirements about transfers of financia l assets including disclosures for

bull Financial assetss that are not derecognised in their entirety For each class o f transferred assets the entity should disclose ndash the nature off the risks and rewards associated with those assets ndash a description of the relationship between the transferred assets and the

associated liaabilities includingg the restrictions on the entityyrsquos use of those assets

ndash the carrying aamounts of the transferred assets that the entity continues to recognise and of the associated liabilities

ndash fair value infoormation of the transferred assets and associated liabilities in transactions in which the counterpartyrsquos recourse is limited to the transferred assets

ndash the carrying aamounts of the original assets at the time of transfer in transactions in which the transferred assets are recognised to the extent of the entityrsquos ccontinuing involvement

bull Financial assetss that are derecognised in their entirety but for which the entity retains coontinuing involvement For each type off continuing involvement the entity should disclose ndash the carrying aamounts and fair values of the assets and liabilities

representingrepresenting the entityrsquos continuing involvement the entity s continuing involvement ndash the entityrsquos mmaximum exposure to loss and how this maximum exposure

was determinned ndash a maturity annalysis of the undiscounted cash flows that may be payable to

the transfereee in respect of the transferred assets ndash the gain or looss on transfer of the assets ndash income and eexpenses arising from the entityrsquos continuing involvement (for

the current pperiod and cumulatively) ndash specific detailed disclosures in respect of situations in which transfer

activity is nott evenly distributed throughout the reporting period (eg a high level of activiity in the closing days)


9

U de t e cu e t eease sta da d t o ease c ass cat o s e st a ce eases

What are the proposed changes

What are the reasons for the changge


Lease acccounting in the future The IASB and FFASB issued a joint ED20109 Leases in an attempt to address longstanding criticisms that lease accounting hass been too permissive of off-balance sheet treatment by leessees overly complex and dominated by arbitrary rules We explain how the proposed requirements will be applied and the likely impact on the financial statements WWe also provide our initial assessment on the tax implicationss in Singapore

The ED proposes thhat a new standard on lease accounting would replace FRS 17 Leases INT FRS 104 Determining whether an Arrangement contains a Lease INT FRS 15 Operatinng Leases ndash Incentives and INT FRS 27 Evaluating the Substance of Transaactions Involving the Legal Form of a Lease It proposes new models for lessee and lessor accounting which would change current lease accounting requiremments significantly

The ED proposes aa model for lessee accounting under which a lessee would recognise a ldquoright-of-userdquo asset representing its right to use the underlying asset and a liability representing its obligation to pay lease rentals over the lease term

The ED proposes twwo different accounting models for lessors the performance obligattion approach and the derecognition approach If a lessorret itains exposure tto i ifi t i k d b fit i t d ith th d l isignificant risks and benefits associated with the underlyingasset then it would apply the performance obligation approach to the lease otherwise it would aapply the derecognition approach

bull Under the perforrmance obligation approach the lessor would continue to recognise its inteerest in the underlying asset The lessor would recognise a new asset repreesenting its right to receive lease payments from the lessee and a new liabilitty representing its obligation to deliver use of the underlying asset toasset to the lessthe lesssee during the lease termsee during the lease term

bull Under the dereccognition approach the lessor would recognise a new asset representing its right to receive lease payments from the lessee It would also derecognisee a portion of the underlying asset representing the lesseersquos rights and reclasssify the remaining portion as a residual asset representing its right to the undeerlying leased asset at the end of the lease term

Under the current leease standard two lease classifications exist finance leases and operating leasess Based on various factors If a lease is classified as a finance lease assets and liaabilities are shown on the lesseersquos balance sheet However an operating lease iss accounted as an ldquooff-balance sheetrdquo item and the lessee does not show any assets or liabilities on the balance sheet Instead the lessee simply accounts for the lease payments as an expense over the lease term

1 Operating leasse accounting understates the assets and liabilities of lessees The EDD proposes that lessees account for all lease contracts under the lsquoright-of-useersquo model and recognise an asset for its right to use the underlying asseet and a liability for its obligation to make lease payments

copy 2010 KPMG LLP (Registration No T08LL1267L) an accounting limited liability partnership registered in Singapore under the Limited Liability Partnership Act (Chapterr 163A) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved Printed in Singapore

What is within scope of the ED

Financial Reporting Matters 10

22 Similar transacctions can be accounted for differently Similar transacctions can be accounted for differently Economically similar transactions can be accounted for very differently because of the distinction between operating and finance leases This makes it difficult for in vestors to compare different entities and the implications of different leasess This also provides opportunities to structure transactions to achieve a particcular accounting outcome

The proposals wwould result in the same accounting for most lease contracts byy lessees As a result financial statements will be more compparable and the opportunityy to structure transactions to achieve a desired accounting outcome will bee reduced

The ED defines a le ase as a ldquocontract in which the right to use a specified asset (the underlying asseet) is conveyed for a period of time in exchange for considerationrdquo The ED proposes specific guidance to certain lease contracts such as bull S bl Subleases AAn eentiity may act as bbothh a llessor andd a llessee off thhe same asset That is an entity maay lease a piece of equipment from a lessor under a head lease and then subleet that same piece of equipment to a lessee under a sublease thereby acting as ann intermediate lessor The ED includes specific guidance on the presentation of subleases by the intermediate lessor

bull Short-term leasses Leases for which the maximum possible lease term is 1212 months or less amonths or less a are within scope of the proposals However lessees andare within scope of the proposals However lessees and lessors may elect too apply the following simplified requirements to such leases on a lease-by-lease bassis

bull A lessee wo uld be permitted to measure the right-of-use asset at the undiscountedd amount of the lease payments plus recoverable initial direct costs and thhe obligation to pay rentals at the undiscounted amount of the estimated fuuture lease payments

bull A lessor wouuld be permitted not to recognise assets and liabilities arising from the leasse contract and not to derecognise any portion of the underlying assset

Lessees and lessorss following these simplified requirements would recognise lease payments in pprofit or loss over the lease term

bull Investment prooperty (IP) A lessor that applies the fair value model under FRS 40 Investment Property would be outside the scope of the ED and would

ti t l FRRS 40 t it IP H l th t li th t ticontinue to apply FRRS 40 to its IP However a lessor that applies the cost option falls within scope off the ED A lessee that applies the fair value model for IP would be permitted but not required to measure its right-of-use asset in accordance with thee fair value model in IAS 40 with changes in the liability to make lease paymennts in profit or loss

The ED excludes leaases of bull intangibleintangible assetsassetsss bull natural resourcees and related exploration bull biological assetss bull in-substance purrchases and sales


t

Accounting model for Accounting model for lessees


The ED proposes a The ED proposes a a model for lessee accounting under which a lessee would a model for lessee accounting under which a lessee would recognise a ldquoright-oof-userdquo asset representing its right to use the underlying asset and a liability repressenting its obligation to pay lease rentals over the lease term

A Initial measuremment 1) The right-of-usee asset would be calculated initially as being equal to the

lease liability pluus direct costs incurred Direct costs are defined as any costs to negotiate or aarrange a lease that would not have been incurred had the lease transactionn not have been made

2) The lease liabil ity would be calculated as the net present value of the anticipated leasee payments

The elements that wwould affect the initial measurement of the liability consist of the following

Les PV

seersquos lease liability = V of lease payments

Discount rate

Lease term Contingent rentals term

options penalties and id l lresidual value guarantees

Elements of the lease liability

Description

Discount rate This would be the lesseersquos incremental borrow be changed after the initial measurement

wing rate (or the rate implicit in the lease) This discount rate cannot

Lease term This would be estimated as the longest possib account the effect of any options to extend or t

This is different from the current FRS 17 where certainrsquo Determining the longest possible lease amount of judgement and may have significant

le lease term that is more likely than not to occur taking into terminate the lease

e the lease term would include these options if it was lsquoreasonably e term that is more likely than not to occur will require a significant t impact on the amount of the lease liability in some cases

Contingent These would be estimated and included in the reasonable number of possible outcomes Con consumer price index or prime interest rate wo or else by reference to prevailing spot rates or

The EDrsquos proposal for contingent rentals is diffe generally recognise contingent rentals as they a

lease payments based on a probability-weighted average for ap y p y g g tingent rentals based on changes in an index or rate eg the ould be estimated using forward rates or indices if readily available indices

erent from current practice under FRS 17 in which lessees are incurred

rentals term option penalties and lessee residual value

Although amounts payable under residual value under FRS 17 it is the maximum lease exposu Obtaining the data on which to make these pro judgments to be made Having the systems to significant changes is also going to be difficult

e guarantees are included in a lesseesrsquos minimum lease payments re under the guarantee and not the expected amount payable

obability assessments is likely to be challenging requiring significant enable the assessments to be updated whenever there are

Amounts payable unnder purchase options would be excluded from the lease payments under thee ED The IASB considers purchase options as not being part of an obligation to mof an obligation to m make lease payments but rather as terminating the lease make lease payments but rather as terminating the lease contract and purchaasing the underlying assets The ED proposes that purchase options be recognis ed only when they are exercised


l

amo n

Accounting model for Accounting model for lessees (continued)

What are the key impacts for the lessees


B Subseqquent measurement 1) The right-of-usse asset is amortised at cost from the date the lease begins

through to the eend of the lease into the profit and loss statement Amortisation off the asset is based on either the straight line method or units of production wwhichever is practical and systematic for the lessee Further the right-of-usee asset is evaluated for impairment in accordance with FRS 36 Impairment of AAssets

2) The lease liabi ilityility is subsequently measured at amortised cost using the is subsequently measured at amortised cost using the 2) The lease liabi effective interest rate method in which the lease payments would be allocated betweeen interest expense and reductions in the remaining liability

3) At each reportting period the right-of-use asset and liability is evaluated for any significcant changes and the carrying amount of the liability is adjusted accorddingly Changes in the carrying amount of the liability that arise from reassessmment of the lease term would be included in the carrying amount of the rt of the rright of se asset Changes that arise from reassessment of right-of-use asset Changes that arise from reassessment of contingent renttals lessee residual value guarantees and term option penalties wouldd be bull included in thhe right-of-use asset to the extent that the changes relate to

future periodds bull recognised inn profit or loss to the extent that the changes relate to current

or prior perioods

Under FRS 17 estimmates made on inception of a lease generally are not revisited during the lease ter m and estimated cash flows are adjusted only if there is a change to the termss of the lease In contrast the EDrsquos approach would result in greater volatility in tthe liabilities recognised by lessees since a reassessment of future lease paymennts would be required when any new facts or circumstances indicate that there iss a significant change in the lease liability

The table below illusstrates the key impacts of the new proposals as compared to the current operatinng and finance lease classifications

In $ 000rsquos Existing FRS 17 Operating

lease

Existing FRS 17

Finance lease

Right of use

model

Assets at inceptio

- Underlying lease

Ri h f- Right of use asse

on

ed asset

et

0

00

1000

00

0

2001200

Total assets 0 1000 1200

Liabilities at inceeption

- Accrual lease pa yable 100 0 0

- Finance lease liability 0 1000 0

- Obligation to payy rentals 0 0 1200

Net assets 100 0 0

Profit and loss inn year one

- Lease rental exppense (100) 0 0

- Contingent rentaals expense (20) (20) 0

- Finance expensee 0 (49) (58)

- Depreciation exppense 0 (71) 0

- Amortisation 0 0 (86)

Total net profit(loss) (120) (140) (144)


The new measu

l


What are the key impacts for What are the key impacts for the lessees (continued)

Accounting models for lessors

What are the differences between the two accounting models

How does the lessor determine which model to use

From the lesseersquos pperspective are thatare thatFrom the lessee s p the key impactsperspective the key impacts bull All leases are oon the balance sheet

ndash There will bee an increase in assets and liabilities Operating leases as well as existing fi nance leases will be affected since the amount capitalised will be different The right-of-use asset includes present value of the lease payments plus expectations about lease term contingent rentals residual value guaranntee and term option penalties

ndash This will havee an effect on key ratios such as debt equity ratios and possibly on ccompliance with bank covenants

ndash This may also impact the amount of headroom when testing for impairment ssince there is an increase in assets There will be no increase in cash flowss from the cash generating units but there will be an increase in the assetss to be covered in the test and rental expenses will be removed from cash flows as they are now financing charges

bull From a profit annd loss perspectiveTh ill b e a ffront loadi ding of if intterestt expense iin the earlly years of andash There will be t l th f lease as thee lease liability will be amortised similarly to the way a finance lease is amortised today

ndash However th ere will be an increase in EBITDA since rental expenses are replaced by aamortisation of the right-of-use asset and interest expense below the linne

bull rement method regarding contingent rental and residual value will requirevalue will requiree significant judgments and the requirement to reassess e significant judgments and the requirement to reassess whenever significant changes occur means there will be more volatility in profit or loss

The ED proposes twwo different accounting models for lessors bull The performance obligation approach which is used when the lessor

retains significannt risks or benefits of the underlying asset bull The derecognittion approach which is used when the lessor does not retain

significant benefsignificant beneffits or risksfits or risks Once an accountingg model has been applied the lessor cannot change the chosen model after lease inception

The key difference bbetween the two accounting models is that under the derecognition approoach the lessor derecognises a portion of the underlying asset that is being leased Under the performance obligation approach a liability is recorded to recoggnise the obliggation of ppermittingg the lessee to use the underlying asset Thhe similarity between both models is that a lease receivable (the right to receive future lease payments) is recorded

The basis for concluusions indicates that the lessorrsquos business model might be helpful in determininng which approach to use If the lessor operates the leasing business primarily too provide finance this is indicative of the derecognition approach If the mo del is to actively manage the underlying assets by releasing or selling at the end off the lease this is indicative of the performance obligation approach However the proposals still require a lease by lease assessment

The following are coonsiderations for the lessor when determining whether they are exposed to sign ificant risks or benefits (not all inclusive) bull Significant contingent rentals based on use or performance of the lease bull Options to extennd or terminate the lease bullbull Material non distinct services provided under the leaseMaterial non-distinct services provided under the lease bull Remaining usefuul life of the asset is not significant after the lease bull Residual value gguarantees included in the lease



U d th f bli Under the performance obligatiti on approach

Contingent rentals and amounts receivable under residual value guarantees

would be included only if the lessor can measure the

amounts reliably

Under the derecognition approach

The lessor would coontinue to recognise its interest in the underlying asset It would also recognisse a new asset representing its right to receive lease payments from the lessee andd a new liability representing its obligation to deliver use of the underlying asset to tthe lessee during the lease term

A Initial measuremment 1) Right to receivve lease payments ndash Generally the lessor would measure the

present value oof the lease payments in a similar manner to a lessee except thhat bull the discount rate would be the rate that the lessor charges the lessee bull contingent reentals and amounts receivable under residual value guarantees

would be inccluded only if the lessor can measure the amounts reliably 2) Lease liability ndashndash This would be calculated based on the amount of the right to

receive asset pluus any initial recoverable direct costs incurred by the lessor to secure the lesseee such as commissions and legal costs

BB Subsequent me Subsequent me asurementasurement 1) Right to receivve lease payments ndash The lessor would measure its lease asset

at amortised coost using the effective interest method and recognise any impairment in aaccordance with FRS 39 Financial Instruments Recognition and Measuremment

2) The lease liabiility subsequently would be amortised into income based on the pattern of uuse of the underlying asset by the lessee If the lessor cannot determine this ppattern reliablyy then it would use the straigght-line method

3) The lessor wo uld reassess its lease asset and adjust its liability in a similar manner similar as how a lessee would reassess its lease liability and adjust its right-of-use asset

The lessor would reecognise a new asset representing its right to receive lease payments from the lessee It would also derecognise a portion of the underlying asset representing tthe lesseersquos rights and reclassify the remaining portion as a resididuall assett repree ti it i ht t th d l i l d t t th d fsenting its right to the underlying leased asset at the end of the lease term

A Initial measure ment 1) Right to receivve lease payments ndash The lessor would initially measure its

lease asset as described under the performance obligation approach as described abovve

2) The residual aasset would be measured by allocating the original carrying amount f tht of the d l i t Th ll ti i b d th ti f th f iunderlying asset The allocation is based on the ratio of the fair value of the leaase payments to the fair value of the underlying asset at the date of inceptioon of the lease This would determine the portion of the carrying amounnt of the underlying asset to be derecognised ndash with the remainder reclaassified as a residual asset

3) Any gain or looss arising at commencement of the lease would be recognised in pprofit or loss (day-one gain)

B SB Subbsequent me asurement 1) Right to receivve lease payments ndash The lessor would measure its lease asset

at amortised coost using the effective interest method and recognise any impairment in aaccordance with FRS 39 This is similar to the subsequent measurement oof the lease asset under the performance obligation approach


x


U d th d iti hUnder the derecognition approach (continued)

What are the key impacts for the lessors

2)2) Th id l b d f i l d i The residual asset may not be remeasured to fair value and is not depreciated hoowever it is subject to impairment testing under FRS 36

3) The lessor wo uld reassess its lease asset in a manner similar to how a lessee would reeassess its liability except that the lessor would bull allocate any change in the carrying amount of its lease asset that is

attributable tto a reassessment of the lease term between its residual asset and profit or loss

bull recognise other changes in the carrying amount of its lease asset in profit recognise other changes in the carrying amount of its lease asset in profit or loss


In $ 000rsquos Existing FRS 17 Operating lease

Ex F isting FRS 17 Finance lease

Performance obligation approach

De-recognition approach

Assets at inception

- Underlying leased asset

- Lease receivable

- Lease obligation

-Net lease asset

-Residual asset

1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600

Profit and loss in year one

-Rental income

-Amortisation of PO liability

-Contingent rentals

-Finance income

-Depreciation expense

-Gain(loss) at inception of lease

100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

58

0

600

Total net profit 49 69 73 658

What is the effective date and transitional provision

When will the proposed changes be finalised

From the lessorrsquos peerspective the key impacts with bull the pperformancce obliggation apppp roach means more front loadingg of income

(ie reverse of thhe lessee) and no upfront gain bull the derecognition approach results in an upfront gain but also results in

deferral of incomme as the residual asset cannot be revalued until the end of the lease

The ED does not proopose an effective date and does not specify whether early adoption would be ppermitted This is because the IASB are currently seeking views in a separate consultation document consultation document on whether or how to sequence on whether or how to sequence views in a separate effective dates in orrder to reduce the burden of this ED and other new standards scheduled to be commpleted in 2011 Once adopted an entity will have to evaluate and recognise all ouutstanding leases as of the date of initial application use a lsquosimplified retrospecctive approachrsquo

Both the IASB and tthe ASC have invited comments on the ED and the comment pperiods closed on 1 5 December 2010 and 22 October 2010 resppectivelyy The release of the final sstandard is planned for June 2011



What are the tax implications for Currently for Singappore income tax purposes leases can be divided into three lessors and lessees in Singapore types with the followwing tax treatment

Type of lease

Tax treatment

Entitlement for lessor Entitlement for lessee Entitlement for lessee under

PIC[1]

Operating lease[2] Capital allowance claim on 100 of cost of asset

Deduction o payments

on 100 of lease Deduction on 250 of lease payments

Finance lease[3] Capital allowance claim on 100 of cost of asset

Deduction o payments (i charges)

on 100 of lease ncluding finance

Deduction on 250 of lease payments (including finance charges)

Finance lease treated as sale agreement[4]

NA Capital allow of cost of a

wance claim on 100 asset

Capital allowance claim on 250 of cost of asset

How will the ED affect tax in Singapore

The tax implicationns for lessees 1) The amortisatioon of the right-of-use asset in profit or loss would generally not

be an allowable deduction for tax purposes and will be excluded from the computation of ttaxable profit Instead the lessee will be entitled for a deduction basedbased on the leaon the leaase payments as stipulated in the lease ase payments as stipulated in the lease contractcontract Unless IRASUnless IRAS decides to changge the tax treatment tax adjustments would be necessary

2) Changes arisingg from reassessment of contingent rentals lessee residual value guarantees and tterm option penalties recognised in profit or loss runs contrary to the basic tax prinnciple since only expenses that are incurred for tax purposes are allowable Unlesss the IRAS is prepared to deviate from this principle tax adjustments would be necessary

3) Interest expensse relating to the lease liability would generally not be an allowable deduction for tax purposes since it is not considered to be an actual cost incurred Unnless the IRAS is agreeable to align the tax treatment with the accounting treatment and adopt the accounting treatment of taxing allowing interest based o n effective interest rate then tax adjustments would be necessary

[1] Refers to Productivity and Innovation Credit scheme ndash see page 23 for more details The benefit from the eenhanced deduction under the PIC is granted only to the lessee of the qualifyin g asset since it is the lessee that has put the asset into productive use

[2] An operating lease is aany lease other than a finance lease This is typically a pure rental of asset [3] A finance lease is one where the obsolescence risks or rewards incidental to ownership of the asset

is substantially transferrred from the lessor to the lessee [4] A finance lease is treatted as a sale agreement where any of the following are met

bull the lessee has an op tion to purchase the asset during the term of the lease including any extensionrenewal thhereof or upon its expiry

bull the asset which is leaased is a limited use asset bull the asset in a sale annd lease-back transaction has been previously used by the lessee or any other

person bull the lessor and lesseee are related to each other and certain other conditions are satisfied bull the parties to the lea se include a lessor lessee and one or more long-term creditors who provide a

substantial part of thee financing for the acquisition of the leased asset without any recourse to the lessor for the repaymment of the loan



Th t i li ti ns f for lessorsThe tax implication l How will the ED affect tax in Singapore (continued) 1) The recognitionn of interest income using the effective interest method and

the upfront gain under the derecognition method runs contrary to the basic tax principle that on ly realised income is subject to tax Unless the IRAS is prepared to deviate from tthis principle tax adjustments would be necessary

2) Under the dereccognition method the lessor derecognises a portion of the underlying asseasseet and a residual asset remains and is not residual asset remains depreciated For taxunderlying et and a and is not depreciated For tax purposes if the lease meets the definition of finance lease (which is not treated as a sale agreemment) under the current tax rules the lessor can still claim capital allowance for thee original asset although it is no longer in the lessorrsquos accounting records A tax a djustment will have to be made to bring the asset back into the lessorrsquos tax bookks and tracked for tax computation purposes of computing capital allowances Thiss situation is similar to the current position whereby finance leases for accounting purposes are not reflected as a fixed asset in the lessors books under FRSS 17

3) For tax purposees the conditions to treat a finance lease as a sale agreement appear to be moore stringent than what the ED considers in-substance purchases and sales (not in the scope of ED) to be Therefore the lessor would still need to establish if a finaance lease is treated as a sales agreement based on the relevant tax criteria so as to apply the correct tax treatment




Improve ments to FRSs 2010 On 7 October 22010 the ASC has issued its third omnibus standard Improovements to FRSs 2010 The improvements follows very cloosely to those issued by the IASB in May 2010

The Improvements to IFRSs 2010 are the result of the IASBrsquos third annual improvements projeect This project involves the IASB accumulating throughout the year what it bellieves are non-urgent but necessary improvements to IFRSs and then processingg these amendments collectively

The Improvements to IFRSs 2010 contain 11 amendments to six standards and one interpretation EEffective dates early application and transitional requirements are dealt with on a sstandard-by-standard basis

We set out below a brief summary of each of these amendments It is worth double-checking thiss list against your own circumstances to see if any of them introduce any changges in policy or presentation or are relevant to this yearrsquos transactionstransactions

In particular we hig hlight below two amendments that may be worth noting earlier

1 Amendment re lating to the presentation of each component of equity in the statement oof changes in equity Paragraph 106 oof FRS 1 Presentation of Financial Statements was amendedg p to clarify that en tities may present the reconciliation from opening to closing balance for eachh component of other comprehensive income (OCI) either in the statement off changes in equity or in the notes to the financial statements

Our Singapore Illlustrative Financial Statements 2010 presents the changes in presents the chaanges in OCI attributable to each item of OCI in the statement of changes in eqquity

2 Amendments too disclosure requirements under FRS 107 Financial Instruments Diisclosures These amendmeents reduces the amount of disclosures previously required by entities Entities are no longer required to disclose the bull Entityrsquos maxximum exposure to credit risk if the carrying amount of the

financial asseet is already represents the maximum exposure bull Carrying ammount of financial assetsmount of financial assets that would have been past due or that would have been past due or bull Carrying am

impaired if thheir terms had not been renegotiated bull Description and fair value of collateral held as security and other credit

enhancemennts in respect of financial assets that are past due but not impaired andd in respect of financial assets that are individually determined to be impaireed However the entity will be required to disclose the financial effeect in respect of a financial instrument

For entities adoppting these amendments early appropriate disclosures should be made in the ffinancial statements



Summary of Improvements to FRSs 2010

Subject of Amendment Amendment Effective Date

FRS 1 Presentation of Financial Statements ndash Presentation of statement of changes in equity

FRS 1 requires for each compo from opening to closing balance statement of changes in equity to show separately changes ari profit or loss in OCI and from t acting in their capacity as owne

FRS 1 i d d t l if thFRS 1 is amended to clarify tha changes in each component of transactions recognised in OCI presented but is permitted to b statement of changes in equity

onent of equity a reconciliation es to be presented in the

y That reconciliation is required sing from items recognised in

transactions with owners ers

t th di ti fat the disaggregation of equity arising from is also required to be

be presented either in the y or in the notes

Effective for annual periods beginning on or after 1 January 2011

Early application is permitted

FRS 27 Consolidated and Separate Financial Statements ndash Transition

FRS 27 (2009) resulted in a num amendments to FRS 21 The Ef Exchange Rates FRS 28 Inves 31 Interests in Joint Ventures T31 Interests in Joint Ventures T

mber of consequential ffects of Changes in Foreign tments in Associates and FRS These added guidance about These added guidance about

Effective for annual periods beginning on or after 1 July 2010

Transition requirements for disposals of all or part of a fore ign operation and about Early application is permitted amendments made as a accounting for a loss of signific ant influence or joint control result of FRS 27 (2009) respectively However it was nnot specified whether those to FRS 21 FRS 28 amendments were to be applieed retrospectively or and FRS 31 prospectively

The 2010 Improvements clarify amendments should be applied amendments to FRS 28 and FRamendments to FRS 28 and FR of the renumbering in FRS 27 (

y that the consequential d prospectively except for the RS 31 that solely are the result RS 31 that solely are the result 2009)

FRS 34 Interim Financial Reporting ndash Significant events and transactions

FRS 34 is amended by adding a list of events or transactions th FRS 34 being examples of

bull recognition of a loss from th assets

bull significant changes in an ensignificant changes in an en circumstances that have an items in the statement of fi whether such items are acc

bull significant transfers of finan levels of the fair value hiera

bull changes in assetsrsquo classifica sale to held to maturity) as a purpose or usepurpose or use

In addition paragraphs 15 and references to materiality are re FRS 34 that describes other mi

a number of examples to the at require disclosure under

he impairment of financial

ntityrsquos business or economic ntity s business or economic impact on the fair value of nancial position regardless of counted for at fair value

ncial instruments between rchy

ation (eg from available for a result of changes in their

16 were restructured and moved from the section in nimum disclosures


Early application is permitted and is required to be discloseddisclosed

INT FRS 113 Customer Loyalty Programmes ndash Fair value of award credit

The terminology used in respec award credits in a customer loy INT FRS 113 uses the term ldquofa value of award credits and the v such award credits could be redsuch award credits could be red amended states that the fair va account the amount of discoun would be offered to customers award credits

ct of the values of awards and yalty programme is amended air valuerdquo in relation to both the value of the awards for which deemed INT FRS 113 asdeemed INT FRS 113 as alue of award credits takes into ts or incentives that otherwise

s that have not earned the


Early application is permitted Early application is permitted and is required to be disclosed



Summary of Improvements to FRSs 2010 (continued)


FRS 101 First-time Adoption of IFRSs ndash Accounting policy changes in the year of adoption

FRS 101 is amended to clarify t Policies Changes in Accounting not apply to the changes in acc during the period covered by th statements

In addition the amendment pro that publish interim financial infthat publish interim financial inf change their accounting policie provided in FRS 101 during the FRS financial statements and c

bull the entity should explain an first interim and the first an

bull the entity should update rec GAAP t FRS i l d d i tGAAP to FRSs included in t information for those chang the change is made

that FRS 8 Accounting g Estimates and Errors does

counting policies that occur heir first FRS financial

ovides guidance for entities formation under FRS 34 and formation under FRS 34 and s or use of the exemptions period covered by their first

larifies that

y such changes between the nual financial statements

conciliations from previous h i i t i fi i lhe previous interim financial

ges in the interim period when


Early application is permitted and is required to be disclosed

FRS 101 ndash Revaluation basis as deemed cost

FRS 101 is amended to extend that a first-time adopter is perm fair value measurement as dee assets This is when such reva reporting periods covered by its statements (e g revaluation of statements (eg revaluation of occurrence of an initial public o revaluation basis is permitted o occurs at or prior to the date of driven fair value measurement at the date when the event trig occurred

For example Company B will p statements for the year endingstatements for the year ending date of transition of 1 January 2 completes an initial public offer revaluation of certain assets If then B determines

bull the FRS cost or a deemed c of FRS 101 and recognises adjustments to retained ear

it if i t t 1 Jequity if appropriate at 1 J bull a deemed cost using the re

IPO occurs and recognises adjustments to retained ear equity if appropriate at 30 to ldquoroll backrdquo the event-driv 2010

the scope of paragraph D8 so mitted to use an event-driven med cost for some or all of its

aluation occurred during the s first FRS financial certain assets on the certain assets on the ffering) Currently such a

only when the revaluation f transition to FRSs The event-is required to be determined

ggering such a revaluation

prepare its first FRS financial 31 December 2011 with a 31 December 2011 with a 2010 At 30 April 2010 B ring which resulted in the B applies this exemption

cost using paragraphs D5 ndash D7 the corresponding

rnings or another category of 2010anuary 2010

evaluation amount(s) when the the corresponding

rnings or another category of April 2010 B is not permitted

ven valuation to 1 January


Entities that adopted FRSs in periods before the effective periods before the effective date of FRS 101 or applied FRS 101 in a previous period eg entities with a date of transition of 1 January 2005 are permitted to apply this amendment retrospectively in the first annual period after the amendment is effective i e 1 January 2011ie 1 January 2011






FRS 101 ndash Use of deemed cost for rate-regulated operations

FRS 101 is amended to provide deemed cost exemption In par plant and equipment or intangib regulated activities the carrying previous GAAP may include am capitalisation under FRSs The carrying amounts being permitt cost at the date of transition to cost at the date of transition to

This exemption may be applied provided that each item to whic tested for impairment in accord of Assets at the date of transiti exemption and the basis on wh determined under previous GAA disclosed

e an additional optional rticular for items of property ble assets used in certain rate-g amounts determined under

mounts that do not qualify for amendment results in such ted to be used as deemed FRSsFRSs

d on an item-by-item basis ch this exemption is applied be dance with FRS 36 Impairment on to FRSs Use of this

hich carrying amounts were AP are required to be



FRS 103 Business Combinations ndash Transitional requirements for contingent consideration from a business combination that occurred before the effective date of the revised FRS

FRS 103 is amended to state th consideration arising in a busine accounted for in accordance wi not been settled or otherwise r of FRS 103 (2009) continues to accordance with FRS 103 (2004

For such contingent considerat combination is adjusted if and wcombination is adjusted if and w contingent consideration is pro measured reliably That means Instruments Recognition and M to contingent consideration wit amendment ie liability-classifi not measured at fair value throu

hat the contingent ess combination that had been ith FRS 103 (2004) that has resolved at the adoption date o be accounted for in 4)

ion the cost of the business when payment of the when payment of the bable and the amount can be that FRS 39 Financial

Measurement does not apply thin the scope of the ied contingent consideration is ugh profit or loss


The amendment is required to be applied prospectively from the date that an entity first applied FRS 103 (2009)


FRS 103 ndash Measurement of non-controlling interests

FRS 103 is amended to limit th measure non-controlling interesg recognition either at fair value o share of the acquireersquos identifia that give rise to a present owne entitle the holder to a share of liquidation

The accounting policy choice do instruments such as written op instruments or options grantedinstruments or options granted arrangements Such interests w fair value or otherwise in accord FRSs eg share-based paymen measured in accordance with F Payment

e accounting policy choice to sts (NCI) upon initialp or at the NCIrsquos proportionate able net assets to instruments ership interest and currently net assets in the event of

oes not apply to other ptions classified as equity under share-based paymentunder share based payment

will generally be measured at dance with other relevant nts that give rise to NCI will be FRS 102 Share-based

Effective for annual periods beginning on or after 1 Julyg g y 2010


Early application is permitted and is required to be and is required to be disclosed

g

FRS 103 ndash Unreplaced and voluntarily

FRS 103 (2009) currently conta of the market-based measure o payment awards that are issue awards between consideration combination compensation cos to replace the acquireersquos existin

FRS 103 is amended so that th also applies to voluntarily replac awards Additionally guidance accounting for unreplaced acqu

ins guidance on the attribution of an acquirerrsquos share-based d in exchange for acquiree transferred and post-

st when an acquirer is obliged ng awards

e guidance for such awards ced unexpired acquiree is introduced about the

uiree awards




replaced sharebased payment awards





FRS 107 Financial Instruments Disclosures ndash Amendments to disclosures

FRS 107 is amended to add an qualitative disclosure should be quantitative disclosures to bett entityrsquos exposure to risks arisin

The existing disclosure requirem amended as follows bull FRS 107 is amended to clar bull FRS 107 is amended to clar

amount that best represent exposure to credit risk is req amount of a financial asset exposure already

bull Additional requirement to d collateral held as security an in respect of a financial inst disclosure is quantification o i k i iti t d b th ll risk is mitigated by the colla

enhancement obtained Thi the existing requirement to nature of such collateral

bull FRS 107 is amended to stat disclosure in respect of coll the entity is required only in held at the end of the repor

The following requirements hav 107 bull Disclosure of the carrying a

would have been past due o not been renegotiated

bull Disclosure of the descriptio held as security and other c of financial assets that are p in respect of financial asset determined to be impaired

Additionally the clause stating are not required when a risk is removed from FRS 107 The ge considerations continue to appl FRS 107 in the same way as th

explicit statement that the e made in the context of the er enable users to evaluate an g from financial instruments

ments of FRS 107 are

rify that the disclosure of the rify that the disclosure of the ts an entityrsquos maximum quired only if the carrying does not reflect such

isclose the financial effect of nd other credit enhancements rument An example of such of the extent to which credit t l d th ditateral and other credit s disclosure is in addition to describe the existence and

te that clarification that ateral taken possession off by

n respect of such collateral rting period

ve been removed from FRS

mount of financial assets that or impaired if their terms had

n and fair value of collateral credit enhancements in respect past due but not impaired and s that are individually

that quantitative disclosures not material has been

eneral materiality ly to all disclosures required by

hey apply to other FRSs





What is Productivity and Innovation Credit (PIC)

Who is eligible for the PIC


Producti vity and Innovation Credit Sccheme

Intended as an impetus to increase productivity improvements improvements and innovation in Singapore the Productivity and innovation in Singapore the Productivity and Innovation Credit (PIC) was introduced in Budget 2010 The PIC providees tax benefit for investments in a range of activities along the innovation value chain In this issue we provide details on the PIC and explain how it can benefit businesses

The PIC provides ennhanced tax deductions to businesses that incur expenditures either on (i) Research amp deveelopment (RampD) activities done in Singapore (ii) Approved designn projects done in Singapore (iii) Registration of inntellectual property rights (IPRs) (iv) Acquisition of IPPRs (v) Acquisition or leaasing of prescribed automation equipment (vi) Training of empl oyees

All businesses whic h incurred qualifying expenditure during the basis period for Years of Assessmennt (YA) 2011 to 2015 may be eligible for the PIC The basis period for any YA reefers to the preceding financial year

For example if the ffinancial year of a business ends on 31 October the basis period for YA 2011 wwill be 1 November 2009 to 31 October 2010period for YA 2011 w will be 1 November 2009 to 31 October 2010


th 1sg y y )

s

st th

a


What are the tax benefits The PIC provides th e following tax benefits under the PIC

Activity area

Qualifying expenditure (net of any grant subsidy by Government)

Deduction of qu

expendit

n allowance ualifying ture per YA Remarks

on the 1 $300000

st

0 on the

balance RampD Staff costs amp consumables for RampD

done in Singapore 250 150 Existing RampD incentives will be phased out

Design Costs incurred in Singapore to create new products amp industrial designs

250 100 The DesignSingapore Council will administer scheme amp approve design expenditure

Registration of IPRsof IPRs

Costs to register patents trademarks design amp plant variety design amp plant variety

250 100 Covers official fees paid to respective Registry (e g for filing application registration) and (eg for filing application registration) and professional fees paid to agent

Acquisition Costs to acquire IPRs for use in trade 250 100 IPRs cover patent copyright trademark of IPRs business in Singapore (exclude EDB

approved IPRs and IPRs related to media amp digital entertainment content)

registered design geographical indication layout design of integrated circuits trade secret or information and plant variety

Does not cover legal fees registration fees stamp duty ampamp other acquisition costs

Requirement to own legal amp economic rights of IP will remain

Automation Costs to purchase lease prescribed 250 100 Includes wide range of equipment amp software

equipment automated equipment listed in ldquoIncome Tax (Automation Equipment) Rules 2004rdquo [1]

for automating processes

However no enhanced deduction will be granted for lease payments of software except for instances where the lease payment of the qualifying equipment is inclusive of payment for the software and no breakdown is available

Training for Costs on external training as well as in- 250 100 Covers course fees paid to external training

employees house training which are Workforce Development Agency (WDA) certified or Institute of Technical Education (ITE) or Institute of Technical Education (ITE) certified or other prescribed courses

service providers remuneration of in-house trainers for delivery of course rental of external training premises cost of training materials stationery and refreshments provided during course

Does not cover remuneration of in-house trainers for other duties including preparation of training materials employees attending the courses (absentee payroll) accommodation traveling transport and overheads like rental amp utilitiesutilities

[1] The list of prescribed automation equipment has been reviewed and expanded to include those used in business settings othe in business settings othe er than an office or factory er than an office or factory Further feedback has been sought on the expanded Further feedback has been sought on the expanded list of equipment as part of the public consultation of the draft Income Tax (Amendment) Bill 2010 The revised list has yet to be enacted


Conversion option

t t


What are the tax benefits The enhanced deduuctionallowance are capped for each category of activity to under the PIC (continued) focus the benefits oof PIC on small and medium enterprises (SMEs) For YA 2011

and 2012 a combin ed cap of up to $600000 will apply for each category of activity over two ye ars For example if the SME incurs qualifying training expenditure of $1500000 and $500000 in YA 2011 and YA 2012 respectively it is eligible to claim a deeduction of 250 on $150000 and $450000 for YA 2011 and YA 2012 respective ly with the balance $50000 qualifying expenditure for YA 2012 being eligible ffor normal deduction of 100 For YA 2013 to YA 2015 thethe2012 being eligible ffor normal deduction of 100 For YA 2013 to YA 2015annual cap is $3000000 The combined cap for YA 2011 and 2012 is to help SMEs benefit from the PICC without having to rush to implement their investments

Subject to the existing tax provisions any utilised tax deductions allowances under the PIC that ccannot be fully set-off against other income of the business can be bull carried back to the immediate preceding YAbull f d d th G R li f S transferred undeer the Group Relief System bull carried forward tto future YAs

Option to convert qualifying deductions into cash Eligible businesses may opt to convert their deductionsallowances under the PIC

at a rate of 7 into a cash payout They can convert up to the combined cap of $600000 (but not leess than $1500) for YA 2011 and YA 2012 into cash (ie $42000) and up to $$300000 (but not less than $1500) for YA 2013 (ie cash payout of $21000)

Eligible businesses refer to those businesses that are carrying on business operations and empploy at least three local employees (ie Singaporeans or Singapore permanent residents) with CPF contributions in the last month of the basis period for the relevant YA This excludes sole-proprietors partners of partnerships and sh areholders who are also directors of companies

Qualifying deductionns converted to cash are no longer available for tax deduction Cash payouts receivved from such conversion are not taxable

Election made for coonversion in a YA is irrevocable and for the registration acquisition of IPRs aand purchase of prescribed automated equipment it must be made on a ldquoper filinngrdquo ldquoper IPRrdquo or ldquoper equipmentrdquo basis This means that any excess deductions allowances on the same IPR equipment exceeding the conversion cap will conversion cap will be forfeited and will not qualify as tax deductions in the be forfeited and will not qualify as tax deductions in the income tax return In addition any qualifying equipment acquired on hire purchase with repayment schhedule straddling over two or more basis periods will not qualify for cash convversion



Can IRAS claw-back the cash Yes cash payouts oor enhanced deductions will be clawed back in any of the payouts enhanced deductions following trigger eveents

Activity area Trigger evennts

Purchase of prescribed automated equipment Disposelease equipment within one year from date of purchase

Registration of IPRs IPR liIPRs or applic within one ye

ti f i t ti t f IPR i di d i dcation for registration or grant of IPR is disposed assigned ear from date of filing

Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

ears if either of the following are met

me to an end without being subsequently revived

t of IPRs are sold transferred or assigned

has permanently ceased

How can businesses apply for the PIC

How can businesses benefit from the PIC

What is the accounting treatment for PICs

In the case of cash payouts the business must notify IRAS by submitting a Disposal of Qualifyinng Assets Form within 30 days from such event The business is also required to reepay the cash payout within 30 days from the date of a notice of PIC Cash Payout Recovery issued by the IRAS Late notificationpayment is subject to the impossition of penalties

Except for approvedd design projects [2] businesses need to file the claim for the enhanced deductionns allowances in their income tax returns for the relevant YA

To apply for the cas h payout businesses need to complete and submit the PIC Cash Payout Applicaation Form (downloadable from the IRASrsquo website) together with the relevant suupporting documents any time after their accounting year-end but not later than thhe income tax return filing deadline Generally the cash payout will be made by the IRAS within three months from the date of receipt of the original PIC Cash Paayout Application Form and the relevant documents

In the next five yearrs for every $1 spent on any of the six activities (up to the annual cap for each activity) businesses can enjoy a further $150 as tax deduction This trannslates to either a 255cent tax savings (off the income tax bill based on prevailing corporate tax rate of 17) or 175cent cash grant (if the option to convert the deductioon to cash payout is chosen)

With the above in mmind businesses should find opportunities to innovate and increase productivityy and to identify and track qualifying expenditures For a start evaluate your busineessrsquo needs for automated equipment additionrenewal Focus on staff training pro grammes to enjoy the tax benefits under the PIC on top of the various WDA subsiddies

We will discussing tthe accounting treatment for PICs in the next issue of Financial Reporting Matters (March 2011)

Find out more For more detailed information on the PIC scheme you can access IRASrsquo website at httpwwwirasgoovsgirashomePIcreditaspx

[2] For design projects to qqualify for the PIC applications must be made to DesignSingapore Council bull b f N b 200100 if thhe ddesiign project hhad allreaddy commencedd or willill commence bbefore 1 before 1 November 200 if j d f January 2011 bull before 1 January 20111 if the design project had been completed or bull at least two months b efore the commencement of the design project in all other cases


R

ACRA-AGC Joint Consultation -Supplementary Report on Formalities

in the Execution of Documents

ACRA promotes culture of voluntary compliance

ACRA Taxonomyy for XBRL financial statement filings


Other local developments In this section we highlight key developments in Singapore legislation and other regulatory developments for 2010

ACRA Matterss ACRA and the Attorrney-Generalrsquos Chambers invite members of the public to provide feedback onn the Supplementary Report on Formalities in the Execution of Documents Amenddments to Companies Act and Limited Liability Partnerships Act

This repport pp proposes amendments to the Comppanies Act and the Limited Liabilityy Partnerships Act to allow companies and limited liability partnerships to execute documents by signaature of certain persons as an alternative to execution under seal A company annd a limited liability partnership will not need a common seal to execute a documennt as a deed but will have the option of having a common seal if it wishes The connsultation exercise ended on 10 December 2010

You can access the consultation document at the following address httpwwwacragohttpwwwacragovsgPublicationsACRA-AGC+Joint+Consultation+-vsgPublicationsACRA AGC+Joint+Consultation+ +Supplementary+RReport+on+Formalities+in+the+Execution+of+Documentshtm

To encourage comppanies to promptly comply with the legal and statutory requirements the foollowing three initiatives have been implemented during the year 1 Colour-coded CCompliance Rating and Certificate of Compliance The online Businesss Directory Search now includes a colour-coded compliance rating to denote wh rating to denote wh ether a company held its annual general meeting (AGM) ether a company held its annual general meeting (AGM) (including the tablingg of up-to-date financial statements) and filed its financial statements and annnual returns on time 2 Issuance of ldquoEnnd of Financial Year Reminderrdquo New reminder noticces will be sent to all private and non-listed public companies immediately after thhe close of the companyrsquos financial year-end This is to reinforce the requireement to hold its AGM and to table its financial statements which must not be more than six months old 3 Shortening of t he time extension ACRA will reduce thhe maximum period for application for extension of time for holding AGM and taabling of financial statements at AGM from three to two months

Refer to Financial Reporting Matters ndash June 2010 for details

The changges to ACRRA Taxonomyy and FS Managger impplemented on 7 March 2010 will assist in eenhancing the quality of XBRL financial statements and the corresponding PDF copy of financial statements stored in the registry

Two changes were highlighted in Financial Reporting Matters ndash March 2010 for details i Filing a Notice o f Error to rectify typographical or clerical errors discovered in

past XBRL filing ii New validation rrules

Refer to the followinng address for details httpappiqsacragoovsgopsnewsnews04aspid=465


sustainability reporti

R


Access to financial information of Singapore companies

Policies and guidance on sustainability reporting

R l f G id t A dit Release of Guidance to Audit Committees on Evaluation of Quality

of Work Performed by External Auditors

Directors managemment and shareholders can now access financial information of Singapore companiees in an interactive and dynamic manner through Open Analytics to enhance their decision-making process

You can access Opeen Analytics at the following address httpswwwopenanalyticscomsg

Singapore Exc Singapore Exc change Matters change Matters In August 2010 SGXX sought feedback from the public on the adoption of

ng and its policy guidelines as a holistic approach towards corporate disclosuree

SGX policy guidelinees include a ldquoPolicy statement on Sustainability Reportingrdquo and a proposed guidde for its listed companies to use in formulating their sustainability reportisustainability reportingng

Sustainability reporting is currently voluntary and particularly relevant for issuers who bull Operate in indusstries that are susceptible to environmental risks bull Operate in indusstries that produce significant environmental pollutants bull Use natural resoources heavily or bull Form part of a suupply chain where end customers demand suppliers behave

responsibly

The feedback periodd closed on 19 November 2010

You can access the policy statement and guidance at the following address httpwwwsgxcommwpsportalcorporatecp-enregulationpublic_consultation

D i th AC RARA and the SGXSGX released th d the publiblicati tion GG iduidance t to AuditDuring the year AC d th l A dit Committees (AC) onn Evaluation of Quality of Work Performed by External Auditors to assist ACs in evaluating the quality of work performed by their external auditors esspecially during the appointment reappointment and rotation of statutory auditorss




An improved and common conceptual framework

ED201010 Removal of Fixed Dates for First-time Adopters


International developments On 28 September 22010 IASB and FASB (together the Boards) released Chapter 1 The objective of ggeneral purpose financial reporting and Chapter 3 Qualitative chharactteriistitics of f usseful fi l financiial i l infformatition of the CConcepttual Fl Framework fk forf f thFinancial Reporting (the conceptual framework)

The release of thesee chapters marks the end of the first of eight phases of the Boardsrsquo joint projectt to develop an improved and common conceptual framework Chapter 1 defines thhe objective of general purpose financial reporting which is focused on providingg decision-useful information to primary users Chapter 3 defines the constrai nts on and qualitative characteristics of useful financial reporting including a new distinction between fundamental and enhancing characteristics

bull Fundamental quualitative characteristics The purpose of these characteristics iss to distinguish between useful information and information that is a not usefful or is misleading Two fundamental qualitative characteristics are identified in the chapter relevance and faithful representation

bull Enhancing quallitative characteristics These characteristics are desirable b lbut less criiticall F h i li i h i i id ifi d i hi Four enhancing qualitative characteristics are identified in the chapter comparability verifiability timeliness and understandability

On 26 August 2010 the IASB published Exposure Draft (ED) Removal of Fixed Dates for First-time Adopters (proposed amendments to IFRS 1)

The ED proposes too amend IFRS 1 to replace the fixed dates in the derecognition exception of paragraaph B2 IFRS 1 First-time Adoption of International Financial Reporting Standardsss and in the exemption to initial fair value measurement of Reporting Standards and in the exemption to initial fair value measurement of financial instruments in paragraphs D20 of IFRS 1 These paragraphs will instead refer to ldquothe date off transition to IFRSsrdquo

The IASB and the AASC have invited comments on the ED The comment periods have closed



ED201011 Deferred Tax Recovery of Underlying Assets Proposed

Amendments to IAS 12


Amendments to IAS 12 (continued)

Basel Committee on BankingBasel Committee on Banking Supervision ndash Proposals on capital

requirements

On 10 September 22010 the IASB published exposure draft (ED) 201011 Deferred Tax Recoovery of Underlying Assets Proposed amendments to IAS 12 (the 2010 ED) The 22010 ED proposes limited amendment to IAS 12 Income Taxes to provide an exception to the measurement principles in specific circumstances

The measurement oof deferred tax assets and liabilities under IAS 12 currently is based on the expected manner of recovery or settlement of the underlying asset or liability

The 2010 ED proposses an exception to this measurement principle in respect of investment propertyy property plant and equipment and intangible assets measured using thee fair value model or the revaluation model in accordance with relevant IFRSs

Under the proposedd exception in these specified circumstances the measurement o f df def d d li bili i ld fl b bl eferred tax assets and liabilities would reflect a rebuttable presumption that thhe carrying amount of the underlying asset will be recovered entirely through salee The presumption could be rebutted only when there is clear evidence that the unnderlying assetrsquos economic benefits will be consumed by the entity throughout thhe assetrsquos economic life

bull The presumptionn can be rebutted only when there is clear evidence that the underlying assetunderlying assettrsquos economic benefits will be consumed by the entity t s economic benefits will be consumed by the entity throughout the aassetrsquos economic life

bull The proposed ammendment to IAS 12 would result in the withdrawal of SIC-21 Income taxes ndash Recovery of revalued non-depreciable assets


On 12 September 20 On 12 September 20 010 the Group of Governors and Heads of Supervision the 010 the Group of Governors and Heads of Supervision the oversight body of th e Basel Committee on Banking Supervision (BCBS) announced a strengtthening of the existing capital requirements for banks The measures are likely tto represent significant increases in minimum capital amounts

The changes announnced include bull modifying the deefinition of capital bull introducing a lev erage ratio cap as a non-risk weighted backstop to the risk-

based minimum capital requirements bull strengthening the capital requirements including for counterparty credit risk bull introducing a glo bal liquidity standard The proposals also specify the amounts

of the new minimmum capital requirements

In addition the BCB S and the Financial Stability Board are developing an integrated approach to systemically important financial institutions to systemically important financial institutions which mayintegrated approach which may incorporate capital s urcharges contingent capital and bail-in debt


IFRIC Draft IFRIC Draft Interpretation DI20101 Interpretation DI20101 Stripping Costs in the Production

Phase of a Surface Mine

ED201012 Severe Hyperinflation ndash Proposed amendment to IFRS 1


On 26 Auggust 2010 the IFRS Interppretations Committee ppublished Draft Interpretation (DI) SStripping Costs in the Production Phase of a Surface Mine

The DI proposes thaat production stripping costs incurred as part of a stripping campaign be capitallised as a component of an existing asset when the definition of an asset is met aa stripping campaign is a systematic effort to gain access to a specific section of oore body Subsequently the stripping campaign component capitalised would bee depreciatedamortised over the expected useful life of the specific section of oore body that becomes directly accessible as a result of the stripping campaign and not based on the entire life of the mine

The Committee andd the ASC have invited comments on the DI The comment periods have closedd

On 30 September 2 010 the IASB published ED201012 Severe Hyperinflation ndash

Proposed amendmeent to IFRS 1 (ED)

This ED proposes too add an exemption to IFRS 1 First-time Adoption of International Financiial Reporting Standards that an entity can apply at the date of transition to IFRSs aafter being subject to severe hyperinflation

The IASB and the ASSC have invited comments on the ED The comment periods have closed

Find out more For a more detailed uupdate on these you can access our website at httpwwwkpmgcoomsgnewslettersifrs_briefing_shthtml


Common abbreviations

ASC Accountingggg Standards Council in Singgappore

ACRA Accountingg amp Corporate Regulatory Authority

DP Discussionn paper

ED Exposure DDraft

FASB US Financcial Accounting Standards Board

FSP FASB Stafff Position

FRS Singapore Financial Reporting Standard

GAAP Generally AAccepted Accounting Principles

IAS International Accounting Standard

IAASB International Auditing and Assurance Standards Board

IASB International Accounting Standards Board

IASC International Accounting Standards Committee

ICPAS Institute off Certified Public Accountants of Singapore

IFRICIFRIC International Financial Reporting Interpretations CommitteeInternational Financial Reporting Interpretations Committee

IFRS International Financial Reporting Standard

INT FRS Interpretation of Financial Reporting Standard

IRAS Inland Reveenue Authority of Singapore

SGX Singapore Exchange

Contact us

David Leaver

Partner Professional Practice

T +65 6213 2538

E davidleaverkpmgcomsg

David Lee

Partner Corporate Tax

T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP

16 Raffles Quay 22-00

Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg

copy 2010 KPMG LLP (Registrat ion NoT08LL1267L) an accounting limited liability partnership registered in Singapore under the Limited Liability Pa rtnership Act (Chapter 163A) and a member firm of the KPMG network of independent member firms affiliated with member firms affiliated with KPMG International Cooperative (ldquoKPMG InternationalKPMG International rdquo) a Swiss entity All rights KPMG International Cooperative ( ) a Swiss entity All rights reserved

This publication has been issuued to inform clients of important accounting developments While we take care to ensure that the information g iven is correct the nature of the document is such that details may be omitted which may be relevant to a particula r situation or entity The information contained in this issue of Financial Reporting Matters should therefore not to be taken as a substitute for advice or relied upon as a basis for formulating business decisions Materials publishedd may only be reproduced with the consent of KPMG LLP

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Bicubic GrayImageResolution 300 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages true MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e9ad88d2891cf76845370524d53705237300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc9ad854c18cea76845370524d5370523786557406300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200035002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE ltFEFF005400610074006f0020006e006100730074006100760065006e00ed00200070006f0075017e0069006a007400650020006b0020007600790074007600e101590065006e00ed00200064006f006b0075006d0065006e0074016f002000410064006f006200650020005000440046002c0020006b00740065007200e90020007300650020006e0065006a006c00e90070006500200068006f006400ed002000700072006f0020006b00760061006c00690074006e00ed0020007400690073006b00200061002000700072006500700072006500730073002e002000200056007900740076006f01590065006e00e900200064006f006b0075006d0065006e007400790020005000440046002000620075006400650020006d006f017e006e00e90020006f007400650076015900ed007400200076002000700072006f006700720061006d0065006300680020004100630072006f00620061007400200061002000410064006f00620065002000520065006100640065007200200035002e0030002000610020006e006f0076011b006a016100ed00630068002egt DAN 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 DEU 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 ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV (Za stvaranje Adobe PDF dokumenata najpogodnijih za visokokvalitetni ispis prije tiskanja koristite ove postavke Stvoreni PDF dokumenti mogu se otvoriti Acrobat i Adobe Reader 50 i kasnijim verzijama) HUN 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 ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f900200061006400610074007400690020006100200075006e00610020007000720065007300740061006d0070006100200064006900200061006c007400610020007100750061006c0069007400e0002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200035002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN ltFEFF9ad854c18cea306a30d730ea30d730ec30b951fa529b7528002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b4f7f75283057307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200035002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a306b306f30d530a930f330c8306e57cb30818fbc307f304c5fc59808306730593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020ace0d488c9c80020c2dcd5d80020c778c1c4c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200035002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f00720020006600f80072007400720079006b006b0073007500740073006b00720069006600740020006100760020006800f800790020006b00760061006c0069007400650074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200035002e003000200065006c006c00650072002000730065006e006500720065002egt POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV ltFEFF005400650020006e006100730074006100760069007400760065002000750070006f0072006100620069007400650020007a00610020007500730074007600610072006a0061006e006a006500200064006f006b0075006d0065006e0074006f0076002000410064006f006200650020005000440046002c0020006b006900200073006f0020006e0061006a007000720069006d00650072006e0065006a016100690020007a00610020006b0061006b006f0076006f00730074006e006f0020007400690073006b0061006e006a00650020007300200070007200690070007200610076006f0020006e00610020007400690073006b002e00200020005500730074007600610072006a0065006e006500200064006f006b0075006d0065006e0074006500200050004400460020006a00650020006d006f0067006f010d00650020006f0064007000720065007400690020007a0020004100630072006f00620061007400200069006e002000410064006f00620065002000520065006100640065007200200035002e003000200069006e0020006e006f00760065006a01610069006d002egt SUO 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 SVE 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 TUR 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 UKR ltFEFF04120438043a043e0440043804410442043e043204430439044204350020044604560020043f043004400430043c043504420440043800200434043b044f0020044104420432043e04400435043d043d044f00200434043e043a0443043c0435043d044204560432002000410064006f006200650020005000440046002c0020044f043a04560020043d04300439043a04400430044904350020043f045604340445043e0434044f0442044c00200434043b044f0020043204380441043e043a043e044f043a04560441043d043e0433043e0020043f0435044004350434043404400443043a043e0432043e0433043e0020043404400443043a0443002e00200020042104420432043e04400435043d045600200434043e043a0443043c0435043d0442043800200050004400460020043c043e0436043d04300020043204560434043a0440043804420438002004430020004100630072006f006200610074002004420430002000410064006f00620065002000520065006100640065007200200035002e0030002004300431043e0020043f04560437043d04560448043e04570020043204350440044104560457002egt ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

Revised FRS 103 (2

2

A

Revised FRS 103 Business Combinations (2009) and FRS 27 Separate and Consolidated Financial Statements (2009)




Overvieww of 2010 changes in Financial Reporting Standards

In this section we summarise the new and revised FRSs that are effectivve for the first time for a company with an p y annual period eending 31 December 2010 We have also included those that are issued but not effective for entities to consider the impact of these changes for the coming financial reportiing period

New FRSs effeective for annual financial periods beginning on 1 January 22010

009) and FRS 27 (2009) apply to acquisition accounting for business combinatioons While the approach taken in FRS 103 (2009) and FRS 27 (2009) does not invoolve a fundamental change in the model for accounting for business combinatioons and non-controlling interests there can be changes to its practice

The key changes incclude the following bull Most transactioon costs will be recognised as an expense bull Purchases and sales of non-controlling shareholdings when control is

retained should be accounted for fully as equity transactions without impact to the income stateement

bull The practicabiliity exception to fair value measurement of identifiable intangible assetss is eliminated

bull Any pre-existinng interests in an acquired company will be remeasured to fair value at the acquisition date with any gain or loss recognised in profit or loss

bull Any retained innterest in a previously-consolidated subsidiary is remeasured to ffair value through profit or loss when control over the subsidiary is lostt

bull Any settlementt of pre-existing business relationships that are effected at th ti f th purchhase be account d f ted for outtsid ide of the bbusinessthe time of the p b f th i combination

bull Contingent connsideration is measured at fair value at the acquisition date Generally subseequent changes will be recognised in profit or loss if the contingent consideration is classified as a liability

Find out more IFRS Handbook Business Combinations and Non-controlling IFRS Handbook Business Combinations and Non controlling Interests is a publication produced by KPMG International Standards Group

This publication provides a comprehensive analysis of IFRS 3 (2008) Business Combinations and accounting for non-controlling interests under IAS 27 (2008) Consolidated and Separate Financial Statements It includes extensive interpretative guidance and illustrative examples to elaborate interpretative guidance and illustrative examples to elaborate or clarify the practical application of IFRS 3 and IAS 27

Printed copies of th is publication are available at a charge of S$230 (exclusive of GST at the prevailingg rate)


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Assets at inception


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(1200)

1000

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1200

0

400

Total assets 1000 1000 1000 1600


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100

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20

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Tax treatment


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T +65 6213 2538


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T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

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F +65 6225 0984

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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor prepress-afdrukken van hoge kwaliteit De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 50 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS ltFEFF04180441043f043e043b044c04370443043904420435002004340430043d043d044b04350020043d0430044104420440043e0439043a043800200434043b044f00200441043e043704340430043d0438044f00200434043e043a0443043c0435043d0442043e0432002000410064006f006200650020005000440046002c0020043c0430043a04410438043c0430043b044c043d043e0020043f043e04340445043e0434044f04490438044500200434043b044f00200432044b0441043e043a043e043a0430044704350441044204320435043d043d043e0433043e00200434043e043f0435044704300442043d043e0433043e00200432044b0432043e04340430002e002000200421043e043704340430043d043d044b04350020005000440046002d0434043e043a0443043c0435043d0442044b0020043c043e0436043d043e0020043e0442043a0440044b043204300442044c002004410020043f043e043c043e0449044c044e0020004100630072006f00620061007400200438002000410064006f00620065002000520065006100640065007200200035002e00300020043800200431043e043b043504350020043f043e04370434043d043804450020043204350440044104380439002egt SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR ltFEFF04120438043a043e0440043804410442043e043204430439044204350020044604560020043f043004400430043c043504420440043800200434043b044f0020044104420432043e04400435043d043d044f00200434043e043a0443043c0435043d044204560432002000410064006f006200650020005000440046002c0020044f043a04560020043d04300439043a04400430044904350020043f045604340445043e0434044f0442044c00200434043b044f0020043204380441043e043a043e044f043a04560441043d043e0433043e0020043f0435044004350434043404400443043a043e0432043e0433043e0020043404400443043a0443002e00200020042104420432043e04400435043d045600200434043e043a0443043c0435043d0442043800200050004400460020043c043e0436043d04300020043204560434043a0440043804420438002004430020004100630072006f006200610074002004420430002000410064006f00620065002000520065006100640065007200200035002e0030002004300431043e0020043f04560437043d04560448043e04570020043204350440044104560457002egt ENU (Use these settings to create Adobe PDF documents best suited for high-quality prepress printing Created PDF documents can be opened with Acrobat and Adobe Reader 50 and later) gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false ConvertColors ConvertToCMYK DestinationProfileName () DestinationProfileSelector DocumentCMYK Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles false MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector DocumentCMYK PreserveEditing true UntaggedCMYKHandling LeaveUntagged UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ]gtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

FRS 103 (2009) whi



























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Discount rate




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lease

Existing FRS 17

Finance lease

Right of use

model

Assets at inceptio

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Assets at inception


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1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

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0

0

0

58

0

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Type of lease

Tax treatment


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David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg




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Les PV


Discount rate




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Existing FRS 17

Finance lease

Right of use

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Assets at inceptio

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1000

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Assets at inception


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-Net lease asset

-Residual asset

1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

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Type of lease

Tax treatment


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Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg















































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9



























t








Les PV


Discount rate




Description

















l

amo n









or prior perioods




lease

Existing FRS 17

Finance lease

Right of use

model

Assets at inceptio

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on

ed asset

et

0

00

1000

00

0

2001200






Net assets 100 0 0









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amounts reliably



















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Assets at inception


- Lease receivable

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1000

0

0

0

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1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

58

0

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Type of lease

Tax treatment


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R


















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requirements































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Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg





















9



























t








Les PV


Discount rate




Description

















l

amo n









or prior perioods




lease

Existing FRS 17

Finance lease

Right of use

model

Assets at inceptio

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on

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2001200






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Assets at inception


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1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

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0

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Type of lease

Tax treatment


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Activity area


Deduction of qu

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Acquisition of IPRs

Within five ye

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bull All or part

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R


















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responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg

















t








Les PV


Discount rate




Description

















l

amo n









or prior perioods




lease

Existing FRS 17

Finance lease

Right of use

model

Assets at inceptio

- Underlying lease


on

ed asset

et

0

00

1000

00

0

2001200






Net assets 100 0 0









The new measu

l
























amounts reliably



















x













Assets at inception


- Lease receivable

- Lease obligation

-Net lease asset

-Residual asset

1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

58

0

600












Type of lease

Tax treatment


PIC[1]



































































































larifies that
























































g







uiree awards













































th 1sg y y )

s

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Deduction of qu

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Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg




l

amo n









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lease

Existing FRS 17

Finance lease

Right of use

model

Assets at inceptio

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ed asset

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0

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1000

00

0

2001200






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Assets at inception


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- Lease obligation

-Net lease asset

-Residual asset

1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

58

0

600












Type of lease

Tax treatment


PIC[1]



































































































larifies that
























































g







uiree awards













































th 1sg y y )

s

st th

a



Activity area


Deduction of qu

expendit


on the 1 $300000

st

0 on the























Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg




The new measu

l
























amounts reliably



















x













Assets at inception


- Lease receivable

- Lease obligation

-Net lease asset

-Residual asset

1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

58

0

600












Type of lease

Tax treatment


PIC[1]



































































































larifies that
























































g







uiree awards













































th 1sg y y )

s

st th

a



Activity area


Deduction of qu

expendit


on the 1 $300000

st

0 on the























Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg








amounts reliably



















x













Assets at inception


- Lease receivable

- Lease obligation

-Net lease asset

-Residual asset

1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

58

0

600












Type of lease

Tax treatment


PIC[1]



































































































larifies that
























































g







uiree awards













































th 1sg y y )

s

st th

a



Activity area


Deduction of qu

expendit


on the 1 $300000

st

0 on the























Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg




x













Assets at inception


- Lease receivable

- Lease obligation

-Net lease asset

-Residual asset

1000

0

0

0

0

1000

0

0

1000

1200

(1200)

1000

0

1200

0

400

Total assets 1000 1000 1000 1600


-Rental income


-Contingent rentals

-Finance income



100

0

20

0

(71)

0

0

0

20

49

0

0

0

86

0

58

(71)

0

0

0

0

58

0

600












Type of lease

Tax treatment


PIC[1]



































































































larifies that
























































g







uiree awards













































th 1sg y y )

s

st th

a



Activity area


Deduction of qu

expendit


on the 1 $300000

st

0 on the























Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg






Type of lease

Tax treatment


PIC[1]



































































































larifies that
























































g







uiree awards













































th 1sg y y )

s

st th

a



Activity area


Deduction of qu

expendit


on the 1 $300000

st

0 on the























Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg














































































larifies that
























































g







uiree awards













































th 1sg y y )

s

st th

a



Activity area


Deduction of qu

expendit


on the 1 $300000

st

0 on the























Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg


































g







uiree awards













































th 1sg y y )

s

st th

a



Activity area


Deduction of qu

expendit


on the 1 $300000

st

0 on the























Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg











































th 1sg y y )

s

st th

a



Activity area


Deduction of qu

expendit


on the 1 $300000

st

0 on the























Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg




Conversion option

t t

















Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg










Acquisition of IPRs

Within five ye

bull IPRs com

bull All or part

bull Business

















R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg




R


















R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg





R












responsibly
























requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg






















requirements































ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg





















ED Exposure DDraft















Contact us

David Leaver


T +65 6213 2538


David Lee


T +65 6213 2539

E dlee2kpmgcomsg

KPMG LLP


Hong Leong Building

Singapore 048581

T +65 6213 3388 T +65 6213 3388

F +65 6225 0984

kpmgcomsg


