4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
c) Foreign Currency Conversion
(Cont’d)
(ii) Foreign Currency Transactions
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 the settlement of such transactions and from the translation
at year end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
d) Employee Benefits
(i) Short term benefits
Wages, salaries, bonuses and social security contributions are recognised as an
expense in the year in which associated services are rendered by employees. Short
term accumulating compensated absences such as paid annual leave are 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 recognised when the absences occur.
(ii) Defined contributions plans
As required by law, companies in Malaysia make contributions to the state pension
scheme, Employees Provident Fund. Such contributions are recognised as an
expense in profit or loss as incurred.
(iii) Share-based compensation
The Group operates an equity-settled, share-based compensation plan. The fair
value of the employee services received in exchange for the grant of the options is
recognised as an expense in profit or loss with a corresponding increase in the share
option reserve over the vesting period. The total amount to be recognised over the
vesting period is determined by reference to the fair value of the options granted on
the date of the grant. Non-market vesting conditions are included in assumptions about
the number of options that are expected to become exercisable on the vesting date.
At each reporting date, the Group revises its estimates of the number of options that
are expected to become exercisable on the vesting date and recognises the impact
of the revision of the estimates in profit or loss, with a corresponding adjustment to
the share option reserve over the remaining vesting period. The equity amount is
recognised in the share option reserve until the option is exercised, upon which it
will be transferred to share premium, or until the option expires, upon which it will
be transferred directly to retained earnings.
Asia Media Group Berhad Annual Report 2014
84
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
