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ASIA MEDIA GROUP Berhad
Annual Report 2016
86
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.9 Financial liabilities (cont’d)
(ii) Derecognition
A financial liability is derecognised when the obligation under the liability is
extinguished. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition
of the original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognised in profit or loss.
3.10 Borrowing costs
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly
attributable to the acquisition, construction or production of that asset. Capitalisation of
borrowing costs commences when the activities to prepare the asset for its intended use
or sale are in progress and the expenditures and borrowing costs are incurred. Borrowing
costs are capitalised until the assets are substantially completed for their intended use or
sale.
All other 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 or the Company incurred
in connection with the borrowing of funds.
3.11 Employee benefits
(i) Short-term benefits
Wages, salaries, bonuses and social security contributions are recognised as an
expense in the year in which the 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. Short-term non-accumulating compensated
absences such as sick leave are recognised when the absences occur.
(ii) Defined contribution plans
The Group participates in the national pension schemes as defined by the laws of
the countries in which it has operations. The Malaysian companies in the Group
make contributions to the Employee Provident Fund (EPF) in Malaysia, a defined
contribution pension scheme. Contributions to defined contribution pension schemes
are recognised as an expense in the period in which the related service is performed.