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Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
109
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(i) Fair value measurement (cont’d.)
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group and the Company determine whether transfers
have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the financial year end.
(j) Provisions
Provisions are recognised when the Group and the Company have a present obligation (legal or constructive) as a result of a past event, it is probable
that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at each financial year end and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of
economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognised as a finance cost.
(k) Deferred grants
Grants are recognised at their fair value where there is reasonable assurance that the grant will be received and all conditions will be met. Where the
grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to
compensate, are expensed. Where the grant relates to an asset, the fair value is recognised in the statements of financial position and is amortised to
profit or loss over the expected useful life of the relevant asset by its related depreciation or amortisation charges.
(l) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company after deducting all of its liabilities.
Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs. Ordinary shares are classified as
equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared.
(m) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the Company and the revenue can be
reliably measured. Revenue is measured at the fair value of consideration received or receivable.
(i) Trade fees
Trade fees on securities traded on the securities exchange are recognised on a trade date basis. Trade fees on derivatives contracts are
recognised net of rebates on a trade date basis. Trade fees on commodities are recognised on a trade date basis net of amount payable to
commodities suppliers and brokers, whenever applicable.
(ii) Clearing fees
Fees for clearing and settlement between clearing participants for trades in securities transacted on the securities exchange are recognised net of
Securities Commission levy when services are rendered. Clearing fees on derivative contracts are recognised net of rebates on the clearing date.