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111
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(t) Employee benefits
(i) Short-term employee benefits
Wages, salaries, paid annual leave, bonuses and non-monetary benefits are accrued in the financial year in which the
associated services are rendered by employees (including full-time executive directors) of the Group and of the Company. The
Group and the Company recognise provision where contractually obliged or where there is a past practice that has created a
constructive obligation.
(ii) Termination benefits
Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement date or
whenever an employee accepts an offer of benefits in exchange for termination of employment. The Group and the Company
recognise termination benefits when it is demonstrably committed to either terminate the employment of current employees
according to a detailed formal plan without possibility of withdrawal or to provide termination benefits as a result of an offer
made to the employee. Benefits falling due more than 12 months after the end of the reporting period are discounted to
present value.
(iii) Post-employment benefits
Defined contribution plans
A defined contribution plan is a pension plan under which the Group and the Company pay fixed contributions into a separate
entity 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 service in the current and prior periods.
The Group’s and the Company’s contributions to defined contribution plans are charged to the statement of profit or loss in
the period to which they relate. Once the contributions have been paid, the Group and the Company have no further payment
obligations.
(iv) Share-based compensation benefits
The Group and the Company operate equity-settled, share-based compensation plans for eligible employees (including full-
time executive directors) of the Group and of the Company, pursuant to the Employee Share Option Scheme (“ESOS”)
and incentive arrangement. Where the Group and the Company pay for services of employees using the share options and
shares, the fair value of the employee services rendered in exchange for the share options granted and shares acquired are
recognised as an expense in the statement of profit or loss over the vesting periods, with the corresponding increase in equity.
The total amount to be expensed over the vesting period is determined by reference to the fair value of the share options and
shares at grant date and the number of share options and shares to be vested by the vesting date. At each reporting date,
the Group and the Company revise their estimates of the number of share options and shares that are expected to be vested
by the vesting date. Any revision of this estimate is included in the statement of profit or loss and with the corresponding
adjustment in equity.
