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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.)
(n) Employee benefits (cont’d.)
(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’s 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.
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.