Bursa Malaysia • Annual Report 2013
114
Financial Reports
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(l) Revenue recognition (cont’d.)
(ix) Other operating revenue
Other operating revenue represents conference fees and exhibition related income and are recognised when the events are held.
(x) Other income
• Accretion of discounts and amortisation of premiums on investments are recognised on an effective yield basis.
• Dividend income is recognised when the right to receive payment is established.
• Interest income is recognised on an accrual basis that reflects the effective yield of the asset.
• Management fees are recognised when services are rendered.
• Rental income from the letting of office space and equipment is recognised on a straight-line basis over the term of the rental agreement.
(m) Employee benefits
(i) Short-term benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are
rendered by employees. Short-term accumulating compensated absences such as paid annual leave are recognised as a liability when they
accrue to the employees. The estimated liability for paid annual leave is recognised for services rendered by employees up to the reporting
date. Short-term non-accumulating compensated absences such as sick leave are recognised when the absences occur.
(ii) Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Group and the Company pay fixed contributions into separate
entities or funds and will have no legal or constructive obligation to pay further contributions if any of the funds do not hold sufficient assets
to pay all employee benefits relating to employee services in the current and preceding financial years. Such contributions are recognised as
an expense in the period in which the related service is performed. As required by law, companies in Malaysia make such contributions to the
Employees Provident Fund (EPF).
(iii) Defined benefit plan
The Group and the Company operate a funded, defined benefit retirement scheme (the Scheme) for its eligible employees. The Scheme was
closed to new entrants effective 1 September 2003.
The Group and the Company’s obligation under the Scheme, calculated using the Projected Unit Credit Method, is determined based on
actuarial computations by an independent actuary, through which the amount of benefit that employees have earned in return for their
services up to 1 September 2003 is estimated.
Notes to the Financial Statements
31 December 2013
