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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(q) Treasury shares
Where the Company or its subsidiary companies purchase the Company’s equity share capital, the consideration paid,
including any attributable transaction costs is deducted from total shareholders’ equity as treasury shares until they are
cancelled. Where such shares are subsequently sold or reissued, any consideration received is included in shareholders’ equity.
(r) Employee benefits
(i) Short term employee benefits
Wages, salaries, paid annual leave, sick leave, bonuses, and non-monetary benefits are accrued in the period in which
the associated services are rendered by the employees (including Executive Directors) of the Group.
(ii) Post-employment benefits
The Group has a post-employment benefit scheme whereby contributions are made to Employees’ Provident
Fund (“EPF”), the national defined contribution plan. The Group’s contributions to EPF are charged to the income
statement in the financial period to which they relate. Once the contributions have been paid, the Group has no
further payment obligations.
(iii) Equity compensation benefits
Details of the Group’s Employees’ Share Option Scheme (“ESOS”) are set out in Note 26 to the financial statements.
The Group does not make a charge to the income statement in connection with options over ordinary shares granted.
When the options over ordinary shares are exercised, the proceeds received, net of any transaction costs, are credited
to share capital and share premium.
(s) Contingent liabilities and contingent assets
The Group does not recognise a contingent liability but discloses its existence in the financial statements. A contingent
liability is a possible obligation that arises from past events whose existence will be confirmed by uncertain future events
beyond the control of the Group or a present obligation that is not recognised because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in the extremely rare circumstance
where there is a liability that cannot be recognised because it cannot be measured reliably.
A contingent asset is a possible asset that arises from past events whose existence will be confirmed by uncertain future
events beyond the control of the Group. The Group does not recognise a contingent asset but discloses its existence where
inflows of economic benefits are probable, but not virtually certain.
(t) Cash and cash equivalents
For the purposes of the cash flow statements, cash and cash equivalents comprise cash in hand, bank balances, deposits
held at call with banks, bank overdrafts and short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
Bank overdrafts are included within “Borrowings” in current liabilities in the balance sheet.
(u) Reporting currency
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
The financial statements are presented in Ringgit Malaysia.
for the financial year ended 31 December 2005