QL Resources Berhad (428915-X)
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2. Significant accounting policies (Cont’d)
(l) Equity instruments
Instruments classified as equity are measured at cost on initial recognition and are not remeasured subsequently.
(i) Issue expenses
Costs directly attributable to the issue of instruments classified as equity are recognised as a deduction from
equity.
(ii) Ordinary shares
Ordinary shares are classified as equity.
(m) Employee benefits
(i) Short-term employee benefits
Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick
leave are measured on an undiscounted basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus if the Group and the
Company have a present legal or constructive obligation to pay this amount as a result of past service provided
by the employee and the obligation can be estimated reliably.
(ii) State plans
The Group’s contributions to statutory pension funds are charged to profit or loss in the financial year to which
they relate. Once the contributions have been paid, the Group has no further payment obligations.
(iii) Defined benefit plans
The Group’s net obligation in respect of defined benefit retirement plans arises from its subsidiaries in Indonesia
for long-term and post-employment benefits, such as pension, severance pay, service pay and other benefits.
The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in the current and prior periods, discounting
that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential asset for the Group, the recognised asset is
limited to the present value of economic benefits available in the form of any future refunds from the plan or
reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration
is given to any applicable minimum funding requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on
plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised
immediately in other comprehensive income. The Group determines the net interest expense or income on
the net defined liability or asset for the period by applying the discount rate used to measure the defined benefit
obligation at the beginning of the annual period to the then net defined benefit liability or asset, taking into
account any changes in the net defined benefit liability or asset during the period as a result of contributions
and benefit payments.
Notes to the Financial Statements
(Cont’d.)
