121 / 204
page
119
KUMPULAN FIMA BERHAD
(11817-V) |
Annual Report
2016
2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3 Summary of Significant Accounting Policies (Cont’d)
(m) Employee Benefits (Cont’d)
(iv) Employees’ Share Scheme
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 the Company.
The total fair value of share options granted to employees is recognised as an employee
cost with a corresponding increase in the employee share 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
employee share reserve.
The proceeds received net of any directly attributable transaction costs are credited to
share capital when the options are exercised. The employee share 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 shares in the Company 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
employees share 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 shares 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 employees
share reserve.