Singapore Airlines 2009 Annual Report Download - page 115

113
2 Accounting Policies (continued)
(ac) Employee benefi ts (continued)
(ii) Defi ned contribution plans
As required by law, the companies in Singapore make contributions to the Central Provident Fund
(“CPF”) scheme in Singapore, a defi ned contribution scheme. Certain of the Group’s subsidiary
companies and overseas stations outside Singapore make contributions to their respective
countries’ pension schemes. Such contributions are recognised as an expense in the period in
which the related service is performed.
(iii) Defi ned benefi t plans
The Group contributes to several defi ned benefi t pension and other post-employment benefi t
plans for employees stationed in certain overseas countries. The cost of providing benefi ts
includes the Group’s contribution for the year plus any unfunded liabilities under the plans,
which is determined separately for each plan. Contributions to the plans over the expected
average remaining working lives of the employees participating in the plans are expensed on
accrual basis.
(ad) Aircraft maintenance and overhaul costs
The Group recognises aircraft maintenance and overhaul expenses (except heavy maintenance visits
and engine overhaul expenses) on an incurred basis. For engine overhaul costs covered by “power-by-
hour” third-party maintenance agreements, a portion of the cost is expensed at a fi xed rate per hour
during the terms of the agreements.
(ae) Training and development costs
Training and development costs, including start-up programme costs, are charged to the profi t and loss
account in the fi nancial year in which they are incurred.
(af) Borrowing costs
Borrowing costs incurred to fi nance advance and progress payments for aircraft are capitalised as part
of advance and progress payments until the aircraft are commissioned for operation or the projects
are completed. All other borrowing costs are recognised as fi nance charges in the period in which they
are incurred.