114 / 174
Fima Corporation Berhad
(21185-P)
financial statements
112
NOTES TO THE FINANCIAL STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (Cont’d.)
2.3 Summary of Significant Accounting Policies (Cont’d.)
(t)
Employee Benefits (Cont’d.)
(iii) Defined benefit plan (Cont’d.)
The latest actuarial valuation was carried out using the employee data as at 31 March 2017 by PT Milliman
Indonesia, an independent actuary dated 18 April 2017.
(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.