Annual Report 2016
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2. Significant accounting policies (Cont’d)
(m) Employee benefits (Cont’d)
(iii) Defined benefit plans (Cont’d)
Net interest expense and other expenses relating to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates
to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Group
recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
(n) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The unwinding of the
discount is recognised as finance cost.
(o) Revenue and other income
(i) Goods sold
Revenue from the sale of goods in the course of ordinary activities is measured at fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is
recognised when persuasive evidence exists, usually in the form of an executed sales agreement, that the
significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration
is probable, the associated costs and possible return of goods can be estimated reliably, and there is no
continuing management involvement with the goods, and the amount of revenue can be measured reliably. If
it is probable that discounts will be granted and the amount can be measured reliably, then the discount is
recognised as a reduction of revenue as the sales are recognised.
(ii) Management fee and administrative charges
Management fee and administrative charges are recognised on an accrual basis.
(iii) Rental income
Rental income from investment property is recognised in the profit or loss on a straight-line basis over the term
of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the
term of the lease.
(iv) Dividend income
Dividend income is recognised in profit or loss on the date that the Group’s or the Company’s right to receive
payment is established, which in the case of quoted securities is the ex-dividend date.
(v) Interest income
Interest income is recognised as it accrues using the effective interest method in profit or loss except for interest
income arising from temporary investment of borrowings taken specifically for the purpose of obtaining a
qualifying asset which is accounted for in accordance with the accounting policy on borrowing costs.
Notes to the Financial Statements
(Cont’d.)
