132 | S P SETIA BERHAD GROUP | Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2014
V. FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(v) Employee benefits (cont’d)
(iii) Share-based payment transactions (cont’d)
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 profit 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 options are exercised, or transferred to retained earnings upon expiry of the share-based payment 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 profit or loss in the period in which they are incurred.
Provisions are recognised when the Group and the Company have a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation
can be estimated reliably.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable that an
outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of
money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the
liability. When discounting is used, the increase in the provision due to the passage of time is recognised as finance cost.