LAPORAN TAHUNAN 2005 ANNUAL REPORT
SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Employee Benefits (Contd.)
Defined benefit plans
The Group operates an unfunded defined benefits scheme for eligible employees and provision is made for all eligible employees based on rates set out in the union agreement for unionised staff or on the Group’s retirement benefits scheme for executives and non-executives.
(iv) Equity compensation benefits The Employees’ Share Options Scheme (“ESOS”) allows the Group’s eligible employees to acquire shares of the Company. No compensation cost or obligation is recognised. When the options are exercised, the issued and paid-up share capital is increased by the number of shares exercised.
Revenue Recognition Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the Group and the Company and the amount of the revenue can be measured reliably.
Advertising revenue Revenue is recognised when services are rendered.
(ii) Circulation revenue Circulation revenue comprises sales of newspapers and magazines and is recognised when the newspapers and magazines are despatched to customers for a consideration.
(iii) Internet related and electronic commerce Revenue is recognised when services are rendered.
(iv) Dividends Dividends from investments are recognised in the financial statements when the rights to receive payment are established.
Interest income, rental income and management fees Interest income, rental income and management fee income are recognised on the accrual basis.
Transactions in foreign currencies are recorded in Ringgit Malaysia at the approximate rates of exchange ruling at the date of transactions. At each balance sheet date, foreign currency monetary items are translated into Ringgit Malaysia at the exchange rates ruling at that date, unless hedged by forward foreign exchange contracts, in which case the rates specified in such forward contracts are used. Non-monetary items which are carried at historical cost are translated using the historical rate as of the date of acquisition and non monetary items which are carried at fair value are translated using the exchange rate that existed when the values were determined.
All exchange rate differences are taken to the income statement.