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(t)Revenue RecognitionRental and related income from operating leases on investment properties are recognised on a straight-line basis over thelease term.Revenue recognition from trading properties is set out in paragraph (j) above.Revenue from the rendering of services is recognised when the service is rendered.Dividend income is recognised in the accounts when it is declared to be payable by the investee companies.Interest income is recognised as interest accrues (using the effective interest method) unless collectibility is in doubt.(u)Employee Benefits(i) Defined Contribution PlanThe Group makes contributions to pension schemes as defined by the laws of the countries in which it hasoperations. In particular, the Singapore companies in the Group make contributions to the Central Provident Fund inSingapore, a defined contribution pension scheme. Contributions to pension schemes are recognised as anexpense in the period in which the related service is performed.(ii)(iii)Employee Leave EntitlementEmployee entitlements to annual leave are recognised when they accrue to employees. A provision is made for theestimated liability for leave as a result of services rendered by employees up to the balance sheet date.Share Option SchemeThe Company has in place Keppel Land Share Option Scheme for the granting of options to eligible employees ofthe Group to subscribe for shares in the Company. Details of the scheme are disclosed in Note 10. The fair valueof the employee services rendered in exchange for the grant of the options is recognised as an expense in the profitand loss account with a corresponding increase in the share option reserve over the vesting period. The totalamount to be recognised over the vesting period is determined by reference to the fair value of the options grantedon the date of the grant.(v)(w)Current TaxCurrent tax assets and liabilities for the current and prior periods are measured at the amount expected to be recoveredfrom or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that areenacted or substantively enacted by the balance sheet date.Deferred TaxationDeferred taxation is provided in full, using the liability method, on all temporary differences between the tax bases ofassets and liabilities at the balance sheet date and their carrying amounts.The principal temporary differences arise from depreciation of fixed assets, offshore income and certain provisions orcharges in the accounts for which the tax relief is not immediately available.Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available againstwhich the temporary differences can be utilised.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset isrealised or the liability is settled, based on tax rates enacted or substantively enacted at the balance sheet date.Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006187