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FINANCIAL REPORTS
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Bursa Malaysia •
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2015
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(i) Fair value measurement (cont’d.)
The Group and the Company use valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy based on the lowest level input that is significant to the fair value measurement as a whole.
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 of 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.