Page 138 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

(e) Revenue and other income

(i) Revenue

Revenue is measured based on the consideration specified in a contract with a customer
in exchange for transferring services to a customer, excluding amounts collected on
behalf of third party. The SC recognises revenue when (or as) it transfers control over a
service to customer. An asset is transferred when (or as) the customer obtains control of
the asset.

The SC transfers control of a good or service at a point in time unless one of the
following overtime criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided as the
SC performs;
(b) the SC’s performance creates or enhances an asset that the customer controls as
the asset is created or enhanced; or
(c) the SC’s performance does not create an asset with an alternative use and the SC
has an enforceable right to payment for performance completed to date.

(ii) government grants

Government grants are recognised initially as deferred income at fair value when there
is reasonable assurance that they will be received and that the SC will comply with the
conditions associated with the grant; they are then recognised in profit or loss as other
income on a systematic basis over the useful life of the asset.

Grants that compensate the SC for expenses incurred are recognised in profit or loss
as other income on a systematic basis in the same period in which the expenses are
recognised.

(iii) Registration fees and license fees

Registration fees and license fees are recognised as it accrues in profit or loss.

(iv) Interest income

Interest income is recognised as it accrues using the effective interest method in profit or
loss.

(f) employee benefits

(i) short-term employee benefits

Short-term employee benefit obligations in respect of salaries, annual bonuses, paid
annual leave and sick leave are measured on an undiscounted basis and are expensed as
the related service is provided.

A liability is recognised for the amount expected to be paid if the SC has a present legal
or constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

128 | PART 5 »» STATEMENTS, STATiSTiCS ANd ACTiviTiES

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