13 Employee entitlement to annual leave is recognised when they accrue to employees. A
provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date.
2.19 OPERATING LEASES
Operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired,
any payment required to be made to the lessor by way of penalty is recognised as an expense in the period when termination takes place.
2.20 TAXATION
The current taxation charged to the profit and loss account represents tax at the current rate based on taxable profits earned during the financial year. Deferred income tax is provided in
full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Currently enacted tax rates
are used in the determination of deferred income tax.
The principal temporary differences arise from depreciation of fixed assets, provision for loan losses, tax losses carried forward; and, in relation to acquisitions, on the difference between the
fair values of the net assets acquired and their tax base.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising from investments in subsidiary companies and associated companies, except where the timing of the reversal of the
temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future.
2.21 PROVISIONS AND OTHER LIABILITIES
Provisions are recognised when DBS Bank has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.
2.22 SHARE CAPITAL
Ordinary shares, non-voting convertible preference shares and non-voting redeemable convertible preference shares with discretionary dividends are classified as equity.
Incremental external costs directly attributable to the issue of new shares, other than on a business combination, are deducted from equity net of any related income taxes.
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2.23 ACCEPTANCES
