Annual Report 2012 - e-KONG Group Limited

2. PRINCIPAL ACCOUNTING POLICIES (continued)Employee benefitsShort-term employee benefitsSalaries, annual bonuses, paid annual leave, contributions to defined contribution retirement plans and the costof non-monetary benefits are accrued in the year in which the associated services are rendered by employees.Where payment or settlement is deferred and the effect would be material, these amounts are stated at theirpresent values.Retirement benefit schemesThe Group, other than overseas subsidiaries (including Mainland China), operates Mandatory Provident Fund(“MPF”) schemes to provide retirement benefits for its full time permanent employees in Hong Kong. Theobligations for contributions to retirement benefit schemes are recognised as expenses in the income statementas incurred. The assets of the schemes are held separately from those of the Group with independent trustees.Under the MPF schemes, both the Group and each eligible employee are required to contribute 5% of theemployee’s basic monthly income, as mandatory contributions, up to a maximum of HK$1,250 (2011: HK$1,000),and they may choose to make additional or voluntary contributions. The Company makes the same additionalcontribution if an employee chooses to make a voluntary contribution of up to a maximum limit of HK$1,250(2011: HK$1,000).Under the MPF schemes, employees are entitled to the Group’s mandatory contributions in accordance with theprovisions in the Hong Kong Mandatory Provident Fund Schemes Ordinance, and are entitled to 100% of theGroup’s voluntary contributions after completion of the first year of service.Overseas subsidiaries (including Mainland China) also operate pension schemes or similar arrangements for theiremployees in accordance with the statutory requirements prescribed by the relevant legal authorities.At the end of the reporting period, the Group had no significant forfeited voluntary contributions which aroseas a result of employees leaving the MPF schemes and which are available to reduce the contributions payableby the Group in future years.Annual Report 2012 47