i'mpact Singapore Tourism Board Annual Report 2010/2011
i'mpact Singapore Tourism Board Annual Report 2010/2011
i'mpact Singapore Tourism Board Annual Report 2010/2011
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NOTES TO THE FINANCIAL STATEMENTS<br />
31 March <strong>2011</strong><br />
(k)<br />
GOVERNMENT GRANTS<br />
Government grants are not recognised until there is reasonable assurance that STB will comply with the conditions<br />
attaching to them and the grants will be received. Government grants whose primary condition is that STB should purchase,<br />
construct or otherwise acquire non-current assets are recognised as deferred income in the statement of financial position<br />
and transferred to income or expenses on a systematic and rational basis over the useful lives of the related assets.<br />
Other government grants are recognised as income over the periods necessary to match them with the costs for which<br />
they are intended to compensate, on a systematic basis. Government grants that are receivable as compensation for<br />
expenses or losses already incurred or for the purpose of giving immediate financial support to STB with no future related<br />
costs are recognised in income or expenses in the period in which they become receivable.<br />
(l)<br />
TRUST AND AGENCY FUNDS<br />
Trust and agency funds are set up to account for funds held in trust where STB is not the owner and beneficiary of the<br />
funds received from the Government and other organisation. The receipts and expenditure in respect of agency funds<br />
are taken directly to the funds accounts and the net assets relating to the funds are shown as a separate line item in the<br />
statement of financial position. Trust and agency funds are accounted for on the cash basis.<br />
STB administers the funds on behalf of the holders of these funds. Upon dissolution of these funds, the remaining monies<br />
in these funds shall be returned to the owners of the funds.<br />
(m) DEFERRED LONG-TERM LEASE INCOME<br />
Premiums received in advance from long-term leases are credited to a deferred long-term lease income account and are<br />
credited to the income or expense on a straight-line basis over the period of the leases.<br />
(n)<br />
INCOME RECOGNITION<br />
Revenue is recognised to the extent that it is probable that the economic benefits will flow to STB and the revenue can be<br />
reliably measured. The following specific recognition criteria must also be met before revenue is recognised:<br />
Funding from Government<br />
Funding from supervisory ministry is based on a percentage of trade receipts and recognised on an accrual basis.<br />
Events-related revenue<br />
Events-related revenue is recognised when the events are completed.<br />
Lease income<br />
Lease income is accounted for in accordance with the accounting policy for leases as detailed in Note 2(c) above.<br />
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