ANNUALREPORT 2013
77
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
b) RevenueRecognition
Revenue is recognisedwhen it is probable that the economic benefits associatedwith the
transaction will flow to the enterprise and the amount of the revenue can be measured
reliably. Revenue ismeasuredat the fair valueof consideration receivedor receivable, net
of returns, allowances and trade discounts.
Revenue from services are recognisedwhen services are rendered. Revenue represents
the invoiced value of services rendered net of discounts and allowances. Interest income
is recognised on accrual basis.
c) ForeignCurrencyConversion
(i) Functional andPresentationCurrency
The individual financial statements of each entity in the Group aremeasured using
the currency of the primary economic environment inwhich theentity operates (“the
functional currency”). The consolidated financial statements arepresented inRinggit
Malaysia (RM), which is also theCompany’s functional currency.
(ii) ForeignCurrencyTransactions
Foreign currency transactions are translated into the functional currency using the
exchange rates prevailing at the dates of the transactions. Foreign exchange gains
and losses resulting from thesettlement of such transactionsand from the translation
at year endexchange rates ofmonetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
d) EmployeeBenefits
(i) Short termbenefits
Wages, salaries, bonuses and social security contributions are recognised as an
expense in the year inwhich associated services are rendered by employees. Short
termaccumulatingcompensatedabsencessuchaspaidannual leaveare recognised
when services are rendered by employees that increase their entitlement to future
compensated absences, and short term non-accumulating compensated absences
such as sick leave are recognisedwhen the absences occur.
(ii) Defined contributionsplans
As required by law, companies inMalaysiamake contributions to the state pension
scheme,EmployeesProvidentFund.Suchcontributionsare recognisedasanexpense
in profit or loss as incurred.
