125 / 188
121
NOTES TO THE FINANCIAL STATEMENTS
F i m a C o r p o r at i o n B e r h a d ( 2 1 1 8 5 - P ) •
A n n u a l R e p o r t 2 0 1 8
2.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.3 Summary of Significant Accounting Policies (Cont’d.)
(t)
Employee Benefits (Cont’d.)
(iv) Employees’ Share Scheme (“ESS”) (Cont’d.)
The Kumpulan Fima Berhad Employee’s Share Scheme (“ESS”) comprises the following (Cont’d.):
-
Employee Share Option Scheme (“ESOS”) (Cont’d.)
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.
(u) Leases
(i)
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.
Leased assets are depreciated over the estimated useful life of the asset. However, if there is no reasonable
certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the
shorter of the estimated useful life and the lease term.