Nextmedia ar cover 21june op.co

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78 Next Media Limited annual report 06 07 Notes to the Consolidated Financial Statements (continued) 4. SIGNIFICANT ACCOUNTING POLICIES (continued) Provisions Provisions are recognised when the Group has a present obligation as a result of past events and it is probable that the Group will be required to settle the obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material. Employee benefi ts (i) Employee leave entitlements Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date. Employee entitlements to sick leave and maternity or paternity leave are not recognised until the time of leave. (ii) Profi t sharing and bonus plans The expected cost of profi t sharing and bonus payments are recognised as a liability when the Group has a present legal or constructive obligation as a result of services rendered by employees and a reliable estimate of the obligation can be made. Liabilities for profi t sharing and bonus plans are expected to be settled within 12 months and are measured at the amounts expected to be paid when they are settled. (iii) Retirement benefi ts obligations The Group operates defi ned contribution retirement scheme in Hong Kong and Taiwan and a mandatory provident fund scheme for its eligible employees in Hong Kong, and defi ned benefi ts plans for its eligible employees in Taiwan, the assets of which are held in separate trustee-administered funds. The Group’s contributions to the defi ned contribution retirement schemes and the mandatory provident fund scheme are expensed as incurred and, in respect of the non-mandatory provident fund schemes, such contributions are reduced by contributions forfeited by those employees who leave the schemes prior to vesting fully in the Group’s contributions. For defi ned benefi t retirement benefi t plans, the cost of providing benefi ts is determined using the projected unit credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses which exceed 10 percent of the greater of the present value of the Group’s pension obligations and the fair value of plan assets are amortised over the expected average remaining working lives of the participating employees. Past service cost is recognised immediately to the extent that the benefi ts are already vested, and otherwise is amortised on a straight-line basis over the average period until the amended benefi ts become vested.
79 4. SIGNIFICANT ACCOUNTING POLICIES (continued) Employee benefi ts (continued) (iii) Retirement benefi ts obligations (continued) The amount recognised in the consolidated balance sheet represents the present value of the defi ned benefi t obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past service cost, and as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to unrecognised actuarial losses and past service cost, plus the present value of available refunds and reductions in future contributions to the plan. (iv) Share options granted to employees of the Company The fair value of services received determined by reference to the fair value of share options granted at the grant date is expended on a straight-line basis over the vesting period, with a corresponding increase in equity (share options reserve). At each balance sheet date, the Group revises its estimates of the number of options that are expected to ultimately vest. The impact of the revision of the estimates, if any, is recognised in consolidated income statement, with a corresponding adjustment to share options reserve. At the time when the share options are exercised, the amount previously recognised in share options reserve will be transferred to share premium. When the share options are forfeited or are still not exercised at the expiry date, the amount previously recognised in share options reserve will be transferred to accumulated profi ts. The Group has applied HKFRS 2 “Share-based payment” to share options granted on or after 1 April 2005 and those granted after 7 November 2002 that vested after 1 April 2005. In relation to share options granted before 1 April 2005, which had vested before 1 April 2005, no amount has been recognised in the consolidated fi nancial statements. Where a grant of share options is cancelled together with the issue of a new grant of share options, the Group determines whether the new grant is a replacement grant or a separate issue of share options. Where the new grant is considered to be a replacement it is recognised as a modifi cation of the original grant. The fair value of both the replacement grant and cancelled share options is determined at the date the replacement share options are granted and the difference, the incremental fair value, is recognised as an expense from the grant date of the replacement issue over the vesting period. The fair value of the cancelled options as determined at date of the original grant continues to be expensed over the original vesting period. Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profi t for the year. Taxable profi t differs from profi t as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the consolidated fi nancial statements and the corresponding tax base used in the computation of taxable profi t, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profi ts will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profi t nor the accounting profi t.
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Lighting Up Our Lives
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Next Media Limited annual report 06
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Next Media Limited annual report 06
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11 Chairman’s Statement A Flexibl
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13 I continue to believe strongly t
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15 Profi t for the year HK$ million
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17 Management Discussion and Analys
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19 Taiwan The people of Taiwan have
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21 1,198,000 at mid-year 2006. Thes
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23 Hong Kong Next Magazine Despite
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25 The dominant position of Taiwan
Page 29 and 30: 27 EBITDA and Segment Results The G
Page 31 and 32: 29 Share Capital Structure During t
Page 33 and 34: 31 In regard to the revaluation def
Page 35 and 36: 33 Group Commitments Number of staf
Page 37 and 38: 35 During the 2006/07 fi nancial ye
Page 39 and 40: 37 Next Media endeavours to ensure
Page 41 and 42: 39 Corporate Governance The Board o
Page 43 and 44: 41 The Company has a policy of prov
Page 45 and 46: 43 All members of the Audit Committ
Page 47 and 48: 45 In compliance with provision C.2
Page 49 and 50: 47 Mr. Ip Yut Kin, aged 55, a Direc
Page 51 and 52: 49 Corporate Information Directors
Page 53 and 54: 51 Corporate Structure Newspapers P
Page 55 and 56: 53 Directors’ Report The Director
Page 57 and 58: 55 (v) The period for which an opti
Page 59 and 60: 57 (b) Share Option Schemes of subs
Page 61 and 62: 59 Next Media Publishing Limited No
Page 63 and 64: 61 (b) Interests in Associated Corp
Page 65: 63 Directors’ Interests in Contra
Page 68 and 69: 66 Next Media Limited annual report
Page 102 and 103: 100 Next Media Limited annual repor
Page 126: 124 Next Media Limited annual repor
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Nextmedia ar cover 21june op.co

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