notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.28 Employee benefits (continued)
(b)
Post-employment benefits
The Group has post-employment benefit schemes in accordance with local conditions and practices in the countries in which it operates. These post-
employment benefit schemes are defined contribution plans.
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity (a fund) and will have no legal
or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee
services in the current and prior periods.
As required by law, the Company and its subsidiaries in Malaysia make contributions to the Employees Provident Fund (“EPF”) which is a defined
contribution plan, whereas subsidiaries in other countries make their respective local contributions, if required by law.
Such contributions are recognised as an expense in the profit or loss in the financial year to which they relate.
2.29 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group Chief Executive
Officer has been identified as the chief operating decision-maker as he is responsible for allocating resources and assessing performance of the Group’s
operating segments.
2.30 Disposal groups held for sale
Disposal groups are classified as assets/liabilities held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale
is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell. Property, plant and equipment and intangible
assets once classified as held for sale are not depreciated or amortised.
2.31 Contingent liabilities
The Group and the Company does not recognise a contingent liability but discloses its existence in the financial statements. A contingent liability is a possible
obligation that arises from past events whose existence will 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 will be required to settle the
obligation. A contingent liability also arises in the extremely rare case where there is a liability that cannot be recognised because it cannot be measured
reliably.
Contingent liability is not recognised on the statement of financial position of the Group, except for contingent liability assumed in a business combination that
is a present obligation and which the fair values can be reliably determined.
85
Wah Seong Corporation Berhad • Annual Report 2014
