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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.)
(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 the financial year end are discounted to present value.
(o) 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 items, are capitalised at the inception of the leases at the fair value of the leased assets or, if lower, at the present value of the
minimum lease payments.
All of the Group’s and the Company’s leases are classified as operating leases. Operating lease payments are recognised as an expense
in profit or loss on a straight-line basis over the lease term.
(ii) The Group and the Company as lessor
Leases where the Group and the Company retain substantially all the risks and rewards of ownership of the assets are classified as
operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as rental income. The accounting policy for rental income is set out in Note 2.4(m)
(x).
(p) Borrowing costs
Borrowing costs are recognised in profit or loss in the period they are incurred. Borrowing costs consist of interest and other costs that the
Group and the Company incurred in connection with the borrowing of funds.
(q) Income taxes
(i) Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates
and tax laws used to compute the amount are those that are enacted or substantively enacted by the financial year end.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss, either
in other comprehensive income or directly in equity.