Background Image
Table of Contents Table of Contents
Previous Page  91 / 178 Next Page
Information
Show Menu
Previous Page 91 / 178 Next Page
Page Background

89

GHL Systems Berhad

(293040-D)

Annual report 2015

Notes to the Financial Statements

31 December 2015 (continued)

4.

SIGNIFICANT ACCOUNTING POLICIES (continued)

4.20 Earnings per share

(a) Basic

Basic earnings per ordinary share for the financial year is calculated by dividing the profit for the

financial year attributable to equity holders of the parent by the weighted average number of

ordinary shares outstanding during the financial year.

(b) Diluted

Diluted earnings per ordinary share for the financial year is calculated by dividing the profit for

the financial year attributable to equity holders of the parent by the weighted average number

of ordinary shares outstanding during the financial year adjusted for the effects of dilutive

potential ordinary shares.

4.21 Fair value measurements

The fair value of an asset or a liability, (except for share-based payment and lease transactions) is

determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date. The fair value measurement

assumes that the transaction to sell the asset or transfer the liability takes place either in the principal

market or in the absence of a principal market, in the most advantageous market.

The Group measures the fair value of an asset or a liability by taking into account the characteristics

of the asset or liability if market participants would take these characteristics into account when

pricing the asset or liability. The Group has considered the following characteristics when determining

fair value:

(a) The condition and location of the asset; and

(b) Restrictions, if any, on the sale or use of the asset.

The fair value measurement for a non-financial asset takes into account the ability of the market

participant to generate economic benefits by using the asset in its highest and best use or by

selling it to another market participant that would use the asset in its highest and best use.

The fair value of a financial or non-financial liability or an entity’s own equity instrument assumes

that:

(a) A liability would remain outstanding and the market participant transferee would be required

to fulfil the obligation. The liability would not be settled with the counterparty or otherwise

extinguished on the measurement date; and

(b) An entity’s own equity instrument would remain outstanding and the market participant

transferee would take on the rights and responsibilities associated with the instrument. The

instrument would not be cancelled or otherwise extinguished on the measurement date.