Maxis Berhad
Annual Report 2015
page
102
Notes to the Financial Statements
31 December 2015
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(t) Employee benefits (continued)
(v)
Share-based compensation benefits (continued)
The total amount to be expensed over the vesting period is determined by reference to the fair value of the share options and shares
at grant date and the number of share options and shares to be vested by the vesting date. At each reporting date, the Group and the
Company revise their estimates of the number of share options and shares that are expected to be vested by the vesting date. Any
revision of this estimate is included in the statement of profit or loss and with the corresponding adjustment in equity.
In circumstances where employees provide services in advance of the grant date, the grant date fair value is estimated for the
purposes of recognising the expense during the period between service commencement and grant date.
The fair value of share options is measured using a modified Black Scholes model. Measurement inputs include share price on
measurement date, exercise price of the instrument, expected volatility (based on weighted average historical volatility adjusted for
changes expected due to publicly available information), weighted average expected life of the instruments (based on maturity of
the share options), expected dividends and the risk-free interest rate (based on data from recognised financial information sources).
The fair value of share grants and shares acquired for employees for nil consideration under the LTIP and incentive arrangement
respectively, are measured using the observable market price of the shares at the grant date.
Non-market vesting conditions attached to the transactions are not taken into account in determining fair value. Non-market vesting
and service conditions are included in assumptions about the number of options or shares that are expected to vest.
When share options or share grants are exercised, the proceeds received, if any, from the exercise of the share options or share grants
together with the corresponding share-based payments reserve, net of any directly attributable transaction costs are transferred to
share capital (nominal value) and share premium. If the share options or share grants expire or lapse, the corresponding share-based
payments reserve attributable to the share options or share grants are transferred to retained earnings.
When share options or share grants are forfeited due to failure by the employee to satisfy the service and/or performance conditions, any
expenses previously recognised in relation to such share options or share grants are reversed effective on the date of the forfeiture.
When shares of the Company are acquired from the open market at market price using cash incentive payable to employees, the
transactions are recorded in share-based payments reserve.
In the separate financial statements of the Company, the share options, share grants and shares acquired, over the Company’s equity
instruments for the employees of subsidiary undertakings in the Group, are treated as a capital contribution. The fair value of the
share options, share grants and shares acquired to employees of the subsidiary in exchange for the services of employees to the
subsidiary are recognised as investment in subsidiary, with a corresponding credit to equity.
(u) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course
of the Group’s and of the Company’s activities. The Group’s revenue is shown net of returns, rebates, discounts and amounts collected on
behalf of third parties and after eliminating sales within the Group.
The Group and the Company recognise revenue when the amount of revenue can be reliably measured, it is probable that future economic
benefits will flow to the entity and specific criteria have been met for each of the Group’s and of the Company’s activities as described
below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved.
The Group and the Company base their estimates on historical results, taking into consideration the type of customer, the type of transaction
and the specifics of each arrangement.
