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4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (p) Employee benefts

(i) Short term employee benefts

The Group recognises a liability and an expense for bonuses based on a formula that takes into consideration the proft

attributable to the equity holders of the Company after certain adjustments. The Group recognises a provision where there is a contractual obligation or where there is a past practice that has created a constructive obligation.

Wages, salaries, bonuses and non-monetary benefts are accrued in the period in which the associated services are

rendered by employees of the Group.

The Group contributes to the Employee Provident Fund, the national defned contribution plan. Once the contributions have

been paid, the Group has no further payment obligations.

Incremental external costs directly attributable to the issue of new shares or options are shown in equity as a deduction,

net of tax, from the proceeds.

Dividends on ordinary shares are recognised as liabilities when declared before the end of the reporting period. A

dividend declared after the end of the reporting period, but before the fnancial statements are authorised for issue, is not recognised as a liability at the end of the reporting period.

Where the Company or its subsidiaries purchases the Company’s equity share capital, the consideration paid, including any

directly attributable incremental external costs, net of tax, is deducted from total shareholders’ equity as treasury shares until they are cancelled, reissued or disposed off. Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental costs and the related tax effects, is included in equity attributable to the controlling equity holders.

The Group does not recognise a contingent asset and liability but discloses its existence in the fnancial statements. A contingent

liability is a possible obligation that arises from past events whose existence will be confrmed 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 outfow of resources will be required to settle the obligation. A contingent liability also arises in the extremely rare circumstance where there is a liability that cannot be recognised because it cannot be measured reliably. However, contingent liabilities do not include fnancial guarantee contracts.

A contingent asset is a possible asset that arises from past events whose existence will be confrmed by the occurrence or non-

occurrence of one or more uncertain future events beyond the control of the Group. The Group does not recognise contingent assets but discloses its existence where infows or economic benefts are probable, but not virtually certain.

The Group recognises separately the contingent liabilities of the acquirees as part of allocating the cost of a business combination

where their fair values can be measured reliably. Where the fair values cannot be measured reliably, the resulting effect will be refected in the goodwill arising from the acquisitions and the information about the contingent liabilities acquired.

Subsequent to the initial recognition, the Group measures the contingent liabilities that are recognised separately at the date

of acquisition at the higher of the amount that would be recognised in accordance with the provisions of FRS 137 “Provisions, contingent liabilities and contingent assets” and the amount initially recognised less, when appropriate, cumulative amortisation recognised in accordance with FRS 118 “Revenue”.