Singapore legislation
Regulation 33
Regulation 33
Recognition as an asset based on cost
Subregulation 1
An item of nationally significant infrastructure expenditure relating to an approved infrastructure project must be capitalised in the following financial year:
subject to sub‑paragraph (b), in a financial year when the Government makes payment —
directly for the cost arising in respect of the approved infrastructure project; or
under a reimbursement arrangement for the cost arising in respect of the approved infrastructure project;
in the financial year when the resulting nationally significant infrastructure is first expected to be available and in a condition necessary for it to be ready for use for its intended purpose or purposes, regardless of the date of actual payment of the cost mentioned in sub‑paragraph (a).
Subregulation 2
Without limiting paragraph (1), the cost in respect of an approved infrastructure project includes —
the cost of acquiring any property (tangible or intangible), plant and equipment for the design, construction, extending or improving the nationally significant infrastructure comprised in or resulting from the approved infrastructure project; and
the costs directly attributable to bringing the nationally significant infrastructure comprised in or resulting from the approved infrastructure project to the location and condition necessary for it to be capable of operating in the manner intended.
Subregulation 3
However, where the cost for any matter mentioned in paragraph (2) is incurred together with other costs without a specific value being allocated to it, then so much of the overall cost as is reasonably practicable to be directly attributable to the matter may be treated as the cost for that matter.
Subregulation 4
Despite paragraph (1), the cost incurred on any of the following must be disregarded for the purpose of this regulation:
the repair or maintenance of a nationally significant infrastructure or related facility of a nationally significant infrastructure;
the acquisition of land and of any right or interest in or over land, even if required in respect of or in connection with any matter in paragraph (a), (b) or (c) of the definition of “infrastructure project” in regulation 30(1);
the acquisition, repair or maintenance of any train, vehicle, aircraft, vessel or barge;
the remuneration, allowances, employee benefits or other like expenses payable to public officers and required by the Constitution to be met from the Consolidated Fund for the public services, even if arising directly from the construction or acquisition of a nationally significant infrastructure or related facility of a nationally significant infrastructure.