PERS Model financial statements - AXP Solutions

PERS Ref.
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)
(Incorporated in Malaysia)
AND ITS SUBSIDIARIES
1.8(e)
1.46(b),(c)
29.93
29.97
29.55
29.114
29.138
29.145
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009
Actuarial gains and losses are recognised as income or expense if the net cumulative unrecognised
actuarial gains and losses at the end of the previous reporting period exceed 10% of the greater of
the present value of the obligation and the fair value of Plan assets at the balance sheet date.
Past service cost is recognised as an expense on a straight-line basis over the average period until
the benefits become vested. To the extent that the benefits are already vested immediately
following the introduction of, or changes to, the Plan, the past service cost is recognised
immediately.
The Plan recognised in the balance sheets is the net total of the present value of the Plan adjusted
for unrecognised actuarial gains or losses, unrecognised past service cost, minus the fair value of
Plan assets. Any asset resulting from the computation is stated at the lower of the amount
determined or the total of any cumulative unrecognised actuarial losses and past service cost, and
the present value of available refunds and reductions in future contribution to the Plan.
Gains or losses on the curtailment or settlement of the Plan are recognised when the curtailment or
settlement occurs.
Termination Benefits
Termination benefits are recognised when the Group and the Company are demonstrably
committed to terminate the employment of the employees before the normal retirement date or
provide termination benefits as a result of an offer made for voluntary redundancy.
Termination benefits in relation to the offer made for voluntary redundancy is measured based on
the number of employees expected to accept the offer.
Borrowing costs
27.29(a) Borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised as part of the cost of the asset when the expenditures for the asset
and 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 during any
extended periods in which active development is interrupted and ceased when substantially all
the activities necessary to prepare the qualifying asset for its intended use or sale are complete.
All other borrowing costs are recognised as an expense in income statements in the financial year
in which they are incurred.
Income Tax
25 Income tax comprises of current tax and deferred tax.
Current tax and deferred tax are charged or credited to equity if the tax relates to items that are
credited or charged directly to equity.
Current tax liabilities are measured based on the amounts expected to be paid, using the tax rates
that have been enacted or substantially enacted by the balance sheet date.
25