inter roller fa final

Notes to the Financial StatementsImpairment of assets (cont’d)An impairment loss is reversed if there has been a change in the estimates used to determine the recoverableamount or when there is an indication that the impairment loss recognised for the asset no longer exists ordecreases.An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carryingamount that would have been determined if no impairment loss had been recognised.Related partiesFor the purposes of these financial statements, parties are considered to be related to the Group if the Grouphas the ability, directly or indirectly, to control the party or exercise significant influence over the party in makingfinancial and operating decisions, or vice versa, or where the Group and the party are subject to commoncontrol or common significant influence. Related parties may be individuals or other entities.Revenue recognitionRevenue from project is recognised based on the percentage of completion method over the period taken tocomplete the project.Dividend income from investments is recognised gross when the right to receive the dividend has been established.Interest income is recognised on a time-apportioned basis.Employee benefits(i) Pension obligationsThe Group and the Company participate in the defined contribution national pension schemes as providedby the laws of the countries in which it has operations. In particular, the Singapore incorporated companiescontribute to the Central Provident Fund (“CPF”), a defined contribution plan regulated and managed bythe Government of Singapore, which applies to the majority of the employees. The contributions tonational pension schemes are charged to the income statement in the period to which the contributionsrelate.(ii)Employee leave entitlementsEmployee entitlements to annual leave are recognised when they accrue to employees. Accrual is madefor the estimated liability for unconsumed leave as a result of services rendered by employees up to thebalance sheet date.(iii)Employee Share Option SchemeThe Company also has an employee share option plan for the granting of non-transferable options.No compensation cost or obligation is recognised when the options are issued or exercised. When theoptions are exercised, equity is increased by the amount of the proceeds received.inter-roller engineering limited annual report2004 49