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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
NOTES TO THE FINANCIAL
STATEMENTS 31 MARCH 2016
(contd.)
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
2.3 Summary of Significant Accounting Policies (Contd.)
(t) Employee Benefits (Contd.)
(iv) Employees’ Share Scheme (“ESS”)
The Kumpulan Fima Berhad Employee’s Share Scheme (“ESS”) comprises the following:
-
Employee Share Option Scheme (“ESOS”)
The ESOS is an equity-settled share-based compensation plan that allows the directors
and employees of the Company and its subsidiaries to acquire shares of Kumpulan
Fima Berhad (“KFima”). The total fair value of share options granted to employees is
recognised as an employee cost with a corresponding increase in the equity contribution
from parent 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 the profit or loss, and a corresponding adjustment to
equity over the remaining vesting period. The equity amount is recognised in the equity
contribution from parent reserve.
The proceeds received net of any directly attributable transaction costs are credited
to share capital when the options are exercised. The equity contribution from parent
reserve is transferred to retained earnings upon expiry of the share options.
-
Restricted Share Grant Scheme (“RSGS”)
Senior management personnel of the Group are entitled to performance-based
restricted shares as consideration for services rendered. The RSGS may be settled by
way of issuance and transfer of new KFima shares or by cash at the absolute discretion
of the Options Committee. The total fair value of RSGS granted to senior management
employees is recognised as an employee cost with a corresponding increase in the
equity contribution from parent reserve within equity over the vesting period and taking
into account the probability that the RSGS will vest.
The fair value of RSGS is measured at grant date, taking into account, the market vesting
conditions upon which the RSGS were granted but excluding the impact of any non-
market vesting conditions. Non-market vesting conditions are included in assumptions
about the number of share that are expected to be awarded on the vesting date.
At each reporting date, the Group revises its estimates of the number of RSGS that
are expected to be awarded on vesting date. It recognises the impact of the revision
of original estimates, if any, in the profit or loss, and a corresponding adjustment to
equity over the remaining vesting period. The equity amount is recognised in the equity
contribution from parent reserve.