Overview
Our
Business
Strategic
Review
Corporate
Governance
Financial
Statements
Other
Information
107
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k) Receivables
Receivables are carried at invoice amount and/or income earned less an allowance for impairment. The allowance is established
when there is objective evidence that the Group and the Company will not be able to collect all amounts due according to the
original terms of receivables. When the debt becomes uncollectible, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are recognised in the statement of profit or loss.
(l) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, deposits held at call with licensed banks, other short-term, highly liquid
investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are included within borrowings
in current liabilities on the statement of financial position. For the purposes of the statement of cash flows, cash and cash
equivalents are presented net of pledged deposits.
(m) Share capital
(i) Classification
Ordinary shares and redeemable preference shares with discretionary dividends are classified as equity. Other shares are
classified as equity and/or liability according to the economic substance of the particular instrument. Distributions to holders
of a financial instrument classified as an equity instrument are charged directly to equity.
(ii) Share issue costs
External costs directly attributable to the issue of new shares are deducted, net of tax, against proceeds and shown in equity.
(iii) Dividends to shareholders of the Company
Dividend distribution to the Company’s shareholders is recognised as a liability in the period they are approved by the Board
of Directors except for the final dividend which is subject to approval by the Company’s shareholders.
(n) Payables
Payables, including accruals, represent liabilities for goods received and services rendered to the Group and the Company prior
to the end of the financial year and which remain unpaid. Payables are classified as current liabilities if payment is due within one
year or less. If not, they are presented as non-current liabilities.
Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
