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Annual Report 2017

145

Notes to the

financial statements

31 march 2017

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.