136 / 222
FINANCIAL REPORTS
128
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.)
(m) Revenue recognition (cont’d.)
(viii) Member services and connectivity
Member services and connectivity mainly comprises:
(a) Access fees
Access fees are recognised over the period that the access to the required services are provided.
(b) Participants’ fees
Initial application fees are recognised upon registration or admission into the securities or derivatives exchange. Annual
subscription fees are recognised on an accrual basis.
(c) Broker services
Fees from broker services are recognised when the services are rendered.
(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.
(n) 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.