NTUC Income AR 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 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 2019 $’000 2018 $’000 Accumulated surplus in other Insurance Funds 2,242,672 1,750,933 Accumulated deficit in Shareholders’ Fund (161,570) (204,933) Net surplus of Shareholders’ Fund and other Insurance funds 2,081,102 1,546,000 Available for distribution for members of the Group 1,054,163 684,103 Non-distributable amount 1,026,939 861,897 The non-distributable amount must be maintained to meet regulatory capital requirement prescribed in the Insurance (Valuation and Capital) Regulations 2004 under the Insurance Act as determined by the Appointed Actuary, and to meet other statutory requirements. 30. LEASES Leases as lessee (FRS 116) The Group leases retail, office and industrial spaces. The leases typically run for a period of 1 to 10 years, with an option to renew the lease after that date. Lease payments are renegotiated upon renewal to reflect market rentals. Right-of-use assets Right-of-use assets related to leased properties that do not meet the definition of investment property are presented as property, plant and equipment (Note 5). Properties 2019 $’000 Restated balance at 1 January 9,882 Depreciation charge for the year (4,863) Additions to right-of-use assets 40,550 Balance at 31 December 45,569 Amounts recognised in profit or loss 2019 – Lease under FRS 116 2019 $’000 Interest on lease liabilities 1,054 Expenses relating to short-term leases 3,890 Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets 74 2018 – Operating lease under FRS 17 Lease expense 9,325 Amount recognised in statement of cash flows 2019 $’000 Total cash outflow for leases 3,372 138 HERE FOR SURE