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FINANCIAL STATEMENTS
Axiata Group Berhad | Annual Report 2016
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(s) Revenue recognition (continued)
(ii) Lease and services of passive infrastructure (continued)
Revenue from provision of passive infrastructure services to customers is recognised on an accrual basis based on prices agreed with
customers through lease agreements.
(iii) Interest income
Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the Group
and the Company reduce the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original
effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is
recognised using original effective interest rate.
(iv) Dividend income
Dividend income from investment in subsidiaries, joint ventures, associates and other investments is recognised when a right to receive
payment is established. This applies even if they are paid out of pre-acquisition profits. However, the investment may need to be tested
for impairment as a consequence.
(v) Technical and management services fees
Technical and management services fees comprise of fees for provision of support services to certain subsidiaries, which are recognised
on an accrual basis.
(vi) Other revenues
All other revenues are recognised net of rebates or discounts upon the rendering of services or sale of products, when the transfers of
risks and rewards have been completed.
(t) Employee benefits
(i) Short term employee benefits
Wages, salaries, paid annual leave and sick leave, bonuses, and non-monetary benefits that are expected to be settled wholly within
twelve (12) months after the end of the period in which the employees render the related service are recognised in respect of employees’
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The
liabilities are presented as “Trade and other payables - payroll liabilities” in the statement of financial position.
(ii) Contribution to Employees Provident Fund (“EPF”)
The Group’s and the Company’s contributions to EPF are charged to the profit or loss in the period to which they relate. Once the
contributions have been paid, the Group and the Company have no further payment obligations. Prepaid contributions are recognised
as an asset to the extent that a cash refund or a reduction in the future payments is available.
(iii) Termination benefits
Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an
employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits at the earlier of the
following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for
a restructuring that is within the scope of MFRS 137 and involves the payment of termination benefits. In the case of an offer made to
encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the
offer. Benefits falling due more than twelve (12) months after the end of the reporting period are discounted to their present value.