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Notes to the Consolidated Financial Statements


                                                                                                 31st March 2017


             2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


                  2.21 Employee benefits

                      (a)  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.


                           Employee entitlements to sick leave, maternity leave and paternity leave are not recognised
                           until the time of leave.


                      (b)  Pension obligations

                           The Group operates a number of defined contribution plans. A defined contribution plan is
                           a  pension  plan  under  which  the  Group  pays  fixed  contributions  into  a  separate  entity.  The
                           Group has no legal or constructive obligations to pay further contributions if the fund does
                           not hold sufficient assets to pay all employees the benefits relating to employee service in the
                           current and prior periods.


                           For  defined  contribution  plans,  the  Group  pays  contributions  to  publicly  or  privately
                           administered  pension  insurance  plans  on  a  mandatory,  contractual  or  voluntary  basis.  The
                           Group  has  no  further  payment  obligations  once  the  contributions  have  been  paid.  The
                           contributions  are  recognised  as  employee  benefit  expense  when  they  are  due.  Prepaid
                           contributions are recognised as an asset to the extent that a cash refund or a reduction in the
                           future payments is available.

                      (c)  Termination benefits

                           Termination  benefits  are  payable  when  employment  is  terminated  by  the  Group  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  a  termination  when  the  entity  has  a  detailed  formal  plan  to  terminate  the
                           employment  of  current  employees  without  possibility  of  withdrawal.  In  the  case  of  an  offer
                           made to encourage voluntary redundancy, the termination benefits are measured based on
                           the  number  of  employees  expected  to  accept  the  offer.  Benefits  falling  due  more  than  12
                           months after the end of the reporting period are discounted to their present values.
















                                                                      ALCO HOLDINGS LIMITED  ANNUAL REPORT 2017  67
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