BUILDING LANDMARKS, CHARTING GROWTH
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Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
3 SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.10 Employee benefits
(i)
Defined contribution plans
Defined contribution plans are post-employment benefit plans under which entities pays fixed contributions into
separate entities and will have no legal or constructive obligation to pay further amounts. Obligations for
contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss
in the periods during which the related services are rendered by employees.
(ii)
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee, and the obligation can be estimated reliably.
(iii)
Share-based payment transactions
The grant date fair value of equity-settled share-based payment awards granted to employees is recognised as an
employee expense, with a corresponding increase in equity, over the period that the employees unconditionally
become entitled to the awards. The amount recognised as an expense is adjusted to reflect the number of awards
for which the related service and non-market performance conditions are expected to be met, such that the amount
ultimately recognised as an expense is based on the number of awards that meet the related service and non-
market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions,
the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up
for differences between expected and actual outcomes.
The fair value of the amount payable to employees in respect of share appreciation rights, which are settled in cash,
is recognised as an expense with a corresponding increase in liabilities, over the period that the employees become
unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based
on the fair value of the share appreciation rights. Any changes in the fair value of the liability are recognised as
employee benefits expense in profit or loss.
3.11 Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised
as finance cost.
Levies
A provision for levies is recognised when the condition that triggers the payment of the levy as specified in the relevant
legislation is met. If a levy obligation is subject to minimum activity threshold so that the obligating event is reaching a
minimum activity, then a provision is recognised when that minimum activity threshold is reached.
