Page 117 - S P Setia Annual Report 2013
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Annual Report 2013 S P SETIA BERHAD GROUP Financial Statements | 115





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






1. SiGniFicant accOUntinG POlicieS (cOnt’D)

(v) Employee benefts (cont’d)
(iii) Share-based payment transactions (cont’d)

ESGP

Employees and Executive Directors are entitled to ESGP in the form of Restricted Share Plan (“RSP”) and Performance Share Plan
(“PSP”) as consideration for services rendered. The RSP is a restricted share plan for employees and Executive Directors, while the
PSP is a performance share plan for selected senior management and Executive Directors.
The RSP and PSP are settled by way of issuance and transfer of new shares upon vesting. The total fair value of RSP and PSP granted
is recognised as an employee cost with a corresponding increase in the share options reserve within equity over the vesting period
after taking into account the probability that the RSP and PSP will vest.

The fair value of RSP and PSP is measured at grant date using the binomial model, taking into account, if any, the market vesting
conditions upon which the RSP and PSP were granted but excluding the impact of any non-market vesting conditions. Non-market
vesting conditions are included in assumptions about the number of shares that are expected to vest on the vesting date.
At each reporting date, the Group revises its estimates of the number of RSP and PSP that are expected to vest on vesting date. It
recognises the impact of the revision of original estimates, if any, in proft or loss and a corresponding adjustment to equity over
the remaining vesting period. The equity amount is recognised in the share-based payment reserve.

ESOS

The ESOS allows the Group’s employees and Executive Directors to acquire shares of the Company. The total fair value of share
options granted is recognised as an employee cost with a corresponding increase in the share options reserve within equity over
the vesting period and taking into account the probability that the options will vest.

The fair value of share options is measured at grant date, taking into account, if any, the market vesting conditions upon which the
options were granted but excluding the impact of any non-market vesting conditions. Non-market vesting conditions are included
in assumptions about the number of options that are expected to become exercisable on vesting date.

At each reporting date, the Group revises its estimates of the number of options that are expected to become exercisable on
vesting date. It recognises the impact of the revision of original estimates, if any, in proft or loss and a corresponding adjustment
to equity over the remaining vesting period. The equity amount is recognised in the share-based payment reserve.

The fair value of the share options recognised in the share-based payment reserve is transferred to share premium when the share-
based payment are exercised, or transferred to retained earnings upon expiry of the share options.

The proceeds received net of any direct attributable transaction costs are credited to equity when the option are exercised.

(w) Borrowing costs

Borrowing costs incurred on assets under development that take a substantial period of time for completion are capitalised into the
carrying value of the assets. Capitalisation of borrowing costs ceases when that assets are completed or during extended periods when
active development is interrupted.
All other borrowing costs are charged to proft or loss in the period in which they are incurred.
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