75
75
2015/2016 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d) Government grants
Cash grants received from the government in relation to the Small and Medium-Size Enterprise cash
grant, cash payout from the Productivity and Innovation Credit (“PIC”) Scheme and PIC Bonus are
recognised in profit or loss as other income when the grant becomes receivables. Cash payout from
the Wage Credit Scheme and Special Employment Credit Scheme are offset against staff cost in profit
or loss when the grant becomes receivable.
(e) Operating lease payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis over
the term of the lease. Lease incentives received are recognised as an integral part of the total lease
expense, over the term of the lease.
Contingent lease payments are accounted for by revising the minimum lease payments over the
remaining term of the lease when the lease adjustment is confirmed.
(f) Finance income
Finance income comprises interest income on deposits and debt securities, dividend income, changes
in the fair value of financial assets at fair value through profit or loss, gains on hedging instruments
that are recognised in profit or loss and reclassifications of net gains previously recognised in other
comprehensive income.
Interest income is recognised in profit or loss as it accrues, using the effective interest method.
Dividend income is recognised in profit or loss on the date that the Group’s right to receive payment is
established, which in the case of quoted securities, is normally the ex-dividend date.
(g) Finance costs on bank borrowings
Finance costs comprise fees and interest expense on bank borrowings and interest rate swaps,
losses on hedging instruments that are recognised in profit or loss and reclassifications of net losses
previously recognised in other comprehensive income.
Finance costs that are not directly attributable to the acquisition, construction or production of a
qualifying asset are recognised in profit or loss using the effective interest method.
