Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 94 3. Significant Accounting Policies (cont’d) (o) Employee benefits (cont’d) (ii) Defined contribution plans As required by law, companies in Malaysia contributions to the state pension scheme, the Employee Provident Fund (“EPF”). Such contributions are recognised as an expense in the profit or loss as incurred. Once the contributions have been paid, the Group has no further payment obligations. (p) Revenue (i) Rendering services Revenue from services rendered is recognised in the profit or loss based on the value of services performed and invoiced to customers during the reporting period. (ii) Interest income Interest income is recognised on accruals basis using the effective interest method. (q) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of the assets, which are assets that necessarily take a substantial period of time to get ready for theirs intended use or sale, are capitalised as part of the cost of those assets. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. Borrowing costs consist of interest and other costs that the Group and the Company incurred in connection with the borrowing of funds. The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or completed. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)