GOING
THE DISTANCE
EUROSPORTS
GLOBAL
.62
NOT E S TO T HE
F I NANC I A L S TAT EMEN T S
YEAR ENDED
31 MARCH, 2016
2.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION (CONT¡¯D)
2A.
Significant accounting policies (cont¡¯d)
Employee benefits
Contributions to a defined contribution retirement benefit plan are recorded as an expense as they fall due. The
entity¡¯s legal or constructive obligation is limited to the amount that it is obligated to contribute to an independently
administered fund (such as the Central Provident Fund in Singapore, a government managed defined contribution
retirement benefit plan).
For employee leave entitlement the expected cost of short-term employee benefits in the form of compensated
absences is recognised in the case of accumulating compensated absences, when the employees render service that
increases their entitlement to future compensated absences; and in the case of non-accumulating compensated
absences, when the absences occur. A liability for bonuses is recognised where the entity is contractually obliged or
where there is constructive obligation based on past practice.
Borrowing costs
Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Interest expense
is calculated using the effective interest rate method. Borrowing costs are recognised as an expense in the period
in which they are incurred except that borrowing costs that are directly attributable to the acquisition, construction
or production of a qualifying asset that necessarily take a substantial period of time to get ready for their intended
use or sale are capitalised as part of the cost of that asset until substantially all the activities necessary to prepare the
qualifying asset for its intended use or sale are complete.
Foreign currency transactions
The functional currency is the Singapore dollar as it reflects the primary economic environment in which the entity
operates. Transactions in foreign currencies are recorded in the functional currency at the rates ruling at the dates of the
transactions. At the end of each reporting year, recorded monetary balances and balances measured at fair value that
are denominated in non-functional currencies are reported at the rates ruling at the end of the reporting year and fair
value measurement dates respectively. All realised and unrealised exchange adjustment gains and losses are dealt with
in profit or loss except when recognised in other comprehensive income and if applicable deferred in equity such as
for qualifying cash flow hedges. The presentation is in the functional currency.
