Bursa Malaysia • Annual Report 2013
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Financial Reports
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(m) Employee benefits (cont’d.)
(iii) Defined benefit plan (cont’d.)
The amount recognised in the statements of financial position represents the present value of the defined benefit obligation at each financial
year end less the fair value of plan assets. The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows using interest rates of high quality corporate bonds in which the benefits will be paid, and that have terms to maturity
approximating to the terms of the pension obligation.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in
other comprehensive income in the period in which they arise.
Net interest is recognised in profit or loss. Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
(iv) Share-based compensation
The Company’s SGP (implemented on 18 April 2011), an equity-settled, share-based compensation plan, allows eligible employees of the
Group to be entitled for ordinary shares of the Company. The total fair value of shares granted to employees are recognised as an employee
cost with a corresponding increase in the share grant reserve within equity over the vesting period while taking into account the probability
that the shares will vest. The fair value of shares are measured at grant date, taking into account, if any, the market vesting conditions upon
which the shares were granted but excluding the impact of any non-market vesting conditions. Non-market vesting conditions are included
in assumptions in respect of the number of shares that are expected to be granted on vesting date.
At each financial year end, the Group and the Company revise its estimate of the number of shares that are expected to be granted on vesting
date. It recognises the impact of revision of original estimates, if any, in profit or loss, and a corresponding adjustment to equity over the
remaining vesting period. The equity amount is recognised in the share grant reserve.
(v) Separation benefits
Separation benefits are payable when employment ceases before the normal retirement date or expiry of employment contract date. The
Group and the Company recognise separation benefits as a liability and an expense when it is demonstrably committed to cease the
employment of current employees according to a detailed plan without possibility of withdrawal. Benefits falling due more than 12 months
after financial year end are discounted to present value.
(n) Leases
(i) The Group and the Company as lessee
Finance leases which transfer to the Group and the Company substantially all the risks and rewards incidental to ownership of the leased
item, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease
payments.
All of the Group and the Company’s leases are classified as operating lease. Operating lease payments are recognised as an expense in profit
or loss on a straight-line basis over the lease term.
Notes to the Financial Statements
31 December 2013
