Page 128 - S P Setia Annual Report 2016

 

 

 

 

 

Page 128 - S P Setia Annual Report 2016
P. 128

126   S P Setia Berhad Group
                Annual Report 2016




          Notes To The Financial Statements

          For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (u)   Employee benefits (cont’d.)


                   (iii)   Share-based payment transactions

                       The Group operates an equity-settled share-based long term incentive plan (“LTIP” or “Scheme”), which comprises the
                       Employee Share Grant Plan (“ESGP”) and Employee Share Option Scheme (“ESOS”) for its employees and Executive
                       Directors.

                       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, 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 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.

                       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 using the binomial model, 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.
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