Overview Our Business
Strategic Review Corporate Governance
Financial Statements
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101
Notes to the Financial Statements
31 December 2015
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(t) Employee benefits
(i)
Short-term employee benefits
Wages, salaries, paid annual leave, bonuses and non-monetary benefits that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of
the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The Group and the Company
recognise a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
(ii)
Termination benefits
Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement date or whenever
an employee accepts an offer of benefits in exchange for termination of employment. The Group and the Company recognise
termination benefits when it is demonstrably committed to either terminate the employment of current employees according to a
detailed formal plan without possibility of withdrawal or to provide termination benefits as a result of an offer made to the employee.
Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
(iii) Post-employment benefits
Defined contribution plans
A defined contribution plan is a pension plan under which the Group and the Company pay fixed contributions into a separate entity on
a mandatory, contractual or voluntary basis, and the Group and the Company have no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and
prior periods.
The Group’s and the Company’s contributions to defined contribution plans are charged to the statement of profit or loss in the period
to which they relate. Once the contributions have been paid, the Group and the Company have no further payment obligations. The
Group and the Company recognise a provision when an employee has provided services in exchange for employee benefits to be paid
in the future. When contributions to a defined contribution plan are not expected to be settled wholly before 12 months after the end
of the reporting period in which the employees render the related service, they shall be discounted to present value.
(iv) Other long-term employee benefits
The liabilities for deferred remuneration are not expected to be settled wholly within 12 months after the end of the reporting period
in which the employee services are provided. When the level of benefit depends on the length of service, an obligation arises when
the service is rendered. Measurement of that obligation reflects the probability that payment will be required and the length of time
for which payment is expected to be made.
The obligation is presented as current liabilities in the statement of financial position if the Group and the Company do not have an
unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is
expected to occur.
(v)
Share-based compensation benefits
The Group and the Company operate equity-settled, share-based compensation plans for eligible employees (including full-time executive
directors) of the Group and of the Company, pursuant to the Employee Share Option Scheme (“ESOS”), Long-term Incentive Plan
(“LTIP”) and incentive arrangement. Where the Group and the Company pay for services of employees using the share options and
shares, the fair value of the share options, share grants and shares acquired in exchange for the services of the employees are recognised
as an employee benefit expense in the statement of profit or loss over the vesting periods, with a corresponding increase in equity.
