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AEMULUS HOLDINGS BERHAD
A N N U A L R E P O R T 2 0 1 6
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
3.9 Cash and Cash Equivalents
Cash comprises cash in hand, cash at bank and demand deposits. Cash equivalents are short term and highly liquid
investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of
changes in value, against which bank overdraft balances, if any, are deducted.
3.10 Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable
estimate of the amount can be made. Provisions are reviewed at the end of each reporting period and adjusted to
reflect the current best estimate. Where the effect of the time value of money is material, the amount of a provision
is the present value of the expenditure expected to be required to settle the obligation.
3.11 Borrowings Costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is necessary to complete and prepare the asset for its intended use or
sale. Capitalisation of borrowing costs commences when the activities to prepare the asset for its intended use or
sale are in progress and the expenditures and borrowing costs are incurred. Borrowing costs are capitalised until
the assets are substantially completed for their intended use or sale.
Other borrowing costs are recognised as expenses in the period in which they are incurred. Borrowing costs consist
of interest and other costs that the Group incurred in connection with the borrowing of funds.
3.12 Research and Development Expenditure
All general research and development expenditure is recognised in profit or loss in the year in which the expenditure
is incurred.
3.13 Government Grants
Government grants are recognised initially as deferred income at their fair values when there is reasonable
assurance that the conditions attaching to them will be complied with and the grants will be received.
Grants are recognised as income on a systematic basis over the periods necessary to match them with the related
costs which they are intended to compensate. Grants related to asset are presented by deducting the grants to
the carrying amount of the asset.
3.14 Revenue Recognition
Sale of goods
(a)
Outright sale
Revenue is recognised when the significant risk and rewards of ownership have been transferred to the buyer.
(b)
Finance lease arrangement
Revenue is recognised at the commencement of the lease term based on the lower of the fair value of the
asset and the present value of the minimum lease payments, computed at a market rate of interest. The
finance income associated with the finance lease is recognised over the lease term.
Rendering of services
Revenue from rendering of services is recognised by reference to the stage of completion of the transaction at
the end of the reporting period. Stage of completion is measured by reference to services performed to date as a
percentage of total services to be performed.
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
– 30 SEPTEMBER 2016