230
PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
15 SHARE-BASED PAYMENT ARRANGEMENTS
(continued)
Measurement of fair values – Equity-settled share-based payment arrangement
The fair value of the share options is measured using the Black Scholes Simulation Model. Measurement inputs include
the share price on the measurement date, the exercise price of the instrument, expected volatility (based on an evaluation
of historical volatility of the Company’s share price, particularly over the historical period commensurate with the expected
term), expected term of the instruments (based on historical experience and general option holder behaviour), expected
dividends, and the risk-free interest rate (based on government bonds). Service and non-market performance conditions
attached to the transactions are not taken into account in determining fair value.
31/12/2015
Fair value at grant date ($)
0.226 – 0.247
Share price at grant date ($)
0.96 – 1.09
Exercise price ($)
0.95 – 1.07
Expected volatility
27.2% – 27.5%
Expected life (years)
5.0
Expected dividends
1.50%
Risk-free interest rate
1.50% – 1.85%
Expense recognised in profit or loss
31/12/2015
30/6/2014
$’000
$’000
Share options granted
1,733
–
Reconciliation of outstanding share options
The number and weighted average exercise prices of share options are as follows:
Weighted
Weighted
average
average
exercise
exercise
price per
Number of
price per
Number of
share
options
share
options
31/12/2015 31/12/2015
30/6/2014
30/6/2014
$
’000
$
’000
Outstanding at the beginning of the period/year
0.15
360
0.15
385
Granted during the period/year
1.04
20,690
–
–
Lapsed/cancelled during the period/year
0.35
(460)
0.15
(25)
Outstanding at end of the period/year
1.04
20,590
0.15
360
Exercisable at end of the period/year
–
–
0.15
360
The options outstanding at 31 December 2015 have a weighted average exercise price of $1.04 (2014: $0.15) per share
and a contractual life of 5 years.
