2. Summary of significant accounting policies (cont’d)
2.21 Employee benefits (cont’d)
(d) Employee share option plans
Employees (including non-executive Directors) of the Group and of the Company
receive remuneration in the form of share options as consideration for services
rendered. The cost of these equity-settled share based payment transactions
with employees is measured by reference to the fair value of the options at the
date on which the share options are granted which takes into account market
conditions and non-vesting conditions. This cost is recognised in profit or loss, with
a corresponding increase in the employee share option reserve, over the vesting
period. The cumulative expense recognised for equity-settled transactions at the
end of each reporting period until the vesting date reflects the extent to which the
vesting period has expired and the Group’s best estimate of the number of options
that will ultimately vest. The charge or credit to profit or loss for a period represents
the movement in cumulative expense recognised as at the beginning and end of that
period and is recognised in employee benefits expense.
No expense is recognised for options that do not ultimately vest, except for options
where vesting is conditional upon a market or non-vesting condition, which are
treated as vested irrespective of whether or not the market condition or non-vesting
condition is satisfied, provided that all other performance and/or service conditions
are satisfied. In the case where the option does not vest as the result of a failure to
meet a non-vesting condition that is within the control of the Group or the employee,
it is accounted for as a cancellation. In such case, the amount of the compensation
cost that otherwise would be recognised over the remainder of the vesting period is
recognised immediately in profit or loss upon cancellation.
The employee share option reserve is transferred to retained earnings upon expiry
of the share options. When the options are exercised, the employee share option
reserve is transferred to share capital if new shares are issued.
2.22 Leases
(a) As lessee
Finance leases which transfer to the Group substantially all the risks and rewards
incidental to ownership of the leased item, are capitalised at the inception of the lease
at the fair value of the leased asset or, if lower, at the present value of the minimum
lease payments. Any initial direct costs are also added to the amount capitalised.
Lease payments are apportioned between the finance charges and reduction of the
lease liability so as to achieve a constant rate of interest on the remaining balance
of the liability. Finance charges are charged to profit or loss. Contingent rents, if any,
are charged as expenses in the periods in which they are incurred.
Capitalised leased assets are depreciated over the shorter of the estimated useful
life of the asset and the lease term, if there is no reasonable certainty that the Group
will obtain ownership by the end of the lease term.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
94
