96
PETRA FOODS LIMITED
ANNUAL REPORT 2015
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
NOT E S TO THE F I NANC I AL S TAT EMENT S
2.
SIGNIFICANT ACCOUNTING POLICIES
(continued)
2.21 Employee compensation
(continued)
(b)
Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Group pays fixed
contributions into separate entities such as the Central Provident Fund on a mandatory, contractual or
voluntary basis.
The Group’s obligation, in regard to the defined contribution plans, is limited to the amount it contributes
to the fund. The Group’s contributions to defined contribution plans are recognised in the financial year
to which they relate.
(c)
Employee leave entitlements
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is
made for the estimated liability for annual leave as a result of services rendered by employees up to the
balance sheet date.
(d)
Termination benefits
Termination benefits are those benefits which are payable when employment is terminated before
the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange
for these benefits. The Group recognises termination benefits when it is demonstrably committed to
either: terminating the employment of current employees according to a detailed formal plan without
possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage
voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted
to present value.
2.22 Share capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the share
capital account.
2.23 Dividends
Interim dividends are recorded in the financial year in which they are declared payable. Final dividends are
recorded in the financial year in which the dividends are approved for payment by the shareholders.
2.24 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting to the Executive Committee
whose members are responsible for allocating resources and assessing performance of the operating segments.
2.25 Fair value estimation of financial assets and liabilities
The carrying amounts of current financial assets and liabilities carried at amortised cost approximate their fair
values.
The fair values of borrowings carried at amortised cost are estimated by discounting the future contractual cash
flows at the current market interest rates that are available to the Group for similar financial liabilities.
