Baker Technology LimitedAnnual Report 2014
95
2.
Summaryof significant accountingpolicies (cont’d)
2.17
Employeebenefits
(a)
Defined contributionplan
The Group participates in the national pension schemes as defined by the laws of the countries in
which it hasoperations. Inparticular, theSingaporecompanies in theGroupmakecontributions to the
CentralProvidentFundscheme inSingapore, adefinedcontributionpensionscheme.Contributions to
adefinedcontributionpensionschemeare recognisedasanexpense in theperiod inwhich the related
service isperformed.
(b)
Employee leaveentitlement
Employee entitlements to annual leave are recognised as a liability when they are accrued to the
employees. Theestimated liability for leave is recognised for services renderedbyemployeesup to
theendof the reportingperiod.
2.18
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the
arrangement at inceptiondate: whether fulfilment of the arrangement is dependent on theuseof a specific
assetorassets,or thearrangement conveysa right touse theasset, even if that right isnotexplicitlyspecified
inanarrangement.
As lessee
Operating lease payments are recognised as an expense in the profit or loss on a straight-line basis over
lease term. Theaggregatebenefit of incentivesprovidedby the lessor is recognisedas a reductionof rental
expenseover the lease termona straight linebasis.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
