APM AUTOMOTIVE HOLDINGS BERHAD
62
NOTES TO THE
FINANCIAL STATEMENTS
2.
Significant accounting policies (continued)
(l)
Employee benefits (continued)
(iii) Defined benefit plans (continued)
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the
return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest),
are recognised immediately in other comprehensive income. The Group determines the net interest
expense or income on the net defined liability or asset for the period by applying the discount rate
used to measure the defined benefit obligation at the beginning of the annual period to the then net
defined benefit liability or asset, taking into account any changes in the net defined benefit liability or
asset during the period as a result of contributions and benefit payments.
Net interest expense and other expenses relating to defined benefit plans are recognised in profit or
loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit
that relates to past service or the gain or loss on curtailment is recognised immediately in profit or
loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the
settlement occurs.
(iv) Termination benefits
Termination benefits are expensed at the earlier of when the Group can no longer withdraw the
offer to those benefits and when the Group recognises costs for a restructuring. If benefits are not
expected to be settled wholly within 12 months of the end of the reporting period, then they are
discounted.
(m) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.
(i)
Warranties
A provision for warranties is recognised when the underlying products are sold. The provision is
based on historical warranty claim.
In rare circumstances, a provision for warranties is not made when it is related to unusual product
defects and where the amount of obligation cannot be measured with sufficient reliability.
(n) Revenue and other income
(i)
Goods sold
Revenue from the sale of goods in the course of ordinary activities is measured at fair value of the
consideration received or receivable, net of returns and allowances and trade discounts. Revenue
is recognised when persuasive evidence exists, usually in the form of an executed sales agreement,
that the significant risks and rewards of ownership have been transferred to the customer, recovery
of the consideration is probable, the associated costs and possible return of goods can be estimated
reliably, and there is no continuing management involvement with the goods, and the amount of
revenue can be measured reliably. If it is probable that discounts will be granted and the amount
can be measured reliably, then the discount is recognised as a reduction of revenue as the sales are
recognised.
