Annual Report
2015
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DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
83
2.
Significant accounting policies (cont’d)
(i) Employee benefits
(i) Short-term employee benefits
Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual
leave and sick leave are measured on an undiscounted basis and are expensed as the related
service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus
or profit-sharing plans if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be
estimated reliably.
(ii) State plans
Contributions to statutory pension funds are charged to profit or loss in the financial year to
which they relate. Prepaid contributions are recognised as an asset to the extent that a cash
refund or a reduction in future payments is available.
(j) Revenue and other income
(i) Services
Revenue from provision of continuing services under the services contracts are recognised
in profit or loss as the services are rendered when there is no significant uncertainty over its
collection.
(ii) Dividend income
Dividend income is recognised in profit or loss on the date that the Group or the Company’s
right to receive payment is established, which in the case of quoted securities is the ex-dividend
date.
(iii) Management fees
Management fees are charged monthly by the Company to its subsidiaries based on services
rendered and recognised in profit or loss when charged.
(iv) Vessel chartering income
Vessel chartering income is recognised in profit or loss as it accrues, at contracted rates.
(v) Catering income
Revenue from catering of food and beverages is recognised in profit or loss upon the delivery
of the food and beverages.
(vi) Interest income
Interest income is recognised in profit or loss as it accrues using the effective interest method,
except for interest income arising from temporary investment of borrowings taken specifically
for the purpose of obtaining a qualifying asset which is accounted for in accordance with the
accounting policy on borrowing costs.
Notes to the
Financial Statements
(cont’d)
