NTUC Income AR 2018

Notes to the Financial Statements For the Financial Year Ended 31 December 2018 28. Accumulated surplus of Life Insurance Par Fund In accordance with regulations, a surplus account is maintained whereby surpluses not transferred to the Shareholders’ Fund are retained in the surplus account to strengthen the Life Insurance Par Fund. The quantum retained in the surplus account is approved by the Board on the recommendation of the appointed actuary. 29. Accumulated surplus of Shareholders’ Fund and other Insurance Funds 2018 $’000 2017 $’000 Accumulated surplus in other Insurance Funds 1,750,933 1,798,240 Accumulated deficit in Shareholders’ Fund (204,933) (356,040) Net surplus of Shareholders’ Fund and other Insurance funds 1,546,000 1,442,200 Available for distribution for members of the Group 684,103 800,832 Non-distributable amount 861,897 641,368 The non-distributable amount must be maintained to meet regulatory capital requirement prescribed in the Insurance (Valuation and Capital) Regulations 2004 under MAS Insurance Act as determined by the Appointed Actuary, and to meet other statutory requirements. 30. Commitments Capital expenditures contracted for at the reporting date but not recognised in the financial statements are as follows: (a) Capital commitments The Group 2018 $’000 2017 $’000 Outstanding investment commitments 653,356 785,978 (b) Operating lease commitments (where the Group is a lessor) The Group leases out retail, commercial and residential space from their investment properties under non- cancellable operating leases. The lessees are required to pay fixed rental payments during the lease period. The future rent receivables under non-cancellable operating leases contracted for at the reporting date but not recognised as receivables, are as follows: The Group 2018 $’000 2017 $’000 Not later than one year 65,514 70,563 Between one and five years 76,355 79,961 (c) Operating lease commitments (where the Group is a lessee) The Group leases office spaces under non-cancellable operating lease agreements. The Group is required to pay fixed rental payments during the lease period. The future minimum lease payables under non-cancellable leases contracted for at the reporting date but not recognised as liabilities, are as follows: The Group 2018 $’000 2017 $’000 Not later than one year 6,087 5,471 Between one and five years 24,064 5,426 129 2018 ANNUAL REPORT