| ANNUAL REPORT 2015
118
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.15 Provisions (cont’d)
Provision for restoration costs
Provision for restoration costs is included in the carrying amounts of property, plant and equipment. This provision is
recognised in respect of the obligation of the Group to restore leased outlets to its original state upon the expiry of
tenancy agreements.
4.16 Contingent liabilities and contingent assets
A contingent liability is a possible obligation that arises from past events whose existence would be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present
obligation that is not recognised because it is not probable that an outflow of resources would be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised
because it cannot be measured reliably. The Group does not recognise a contingent liability but discloses its existence
in the financial statements.
A contingent asset is a possible asset that arises from past events whose existence would be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group. The Group does
not recognise contingent assets but disclose its existence where inflows of economic benefits are probable, but not
virtually certain.
In the acquisition of subsidiaries by the Group under business combinations, contingent liabilities assumed are
measured initially at their fair value at the acquisition date.
4.17 Employee benefits
(a) Short term employee benefits
Wages, salaries, social security contributions, paid annual leave, paid sick leave, bonuses and non-monetary benefits
are measured on an undiscounted basis and are expensed when employees rendered their services to the Group.
Short term accumulating compensated absences such as paid annual leave are recognised as an expense when
employees render services that increase their entitlement to future compensated absences. Short term non-
accumulating compensated absences such as sick leave are recognised when the absences occur and they lapse
if the current period’s entitlement is not used in full and do not entitle employees to a cash payment for unused
entitlement on leaving the Group.
Bonuses are recognised as an expense when there is a present, legal or constructive obligation to make such
payments, as a result of past events and when a reliable estimate can be made of the amount of the obligation.
(b) Defined contribution plans
The Company and its subsidiaries incorporated in Malaysia make contributions to a statutory provident fund and
foreign subsidiaries make contributions to their respective countries’statutory pension schemes. The contributions
are recognised as a liability after deducting any contribution already paid and as an expense in the period in which
the employees render their services.
