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151
Notes to the Financial Statements
31 December 2015
31 SHARE CAPITAL (CONTINUED)
(d) Incentive arrangement (continued)
Movement in the number of shares under the incentive arrangement is as follows:
Group and Company
2015
’000
2014
’000
As at 1 January
687
-
Acquired
315
687
As at 31 December
1,002
687
For the financial year, the weighted average fair value of shares acquired under the incentive arrangement based on observable market
price was RM6.97 (2014: RM6.97).
Value of employee services received under the incentive arrangement:
Group
Company
2015
RM’000
2014
RM’000
2015
RM’000
2014
RM’000
Share-based payment expense
8,122
977
8,122
977
Capitalised as investment in subsidiaries for share-based
payments allocated to the employee of a subsidiary
-
-
(8,122)
(977)
Total expense recognised as share-based payments
8,122
977
-
-
32 RESERVES
(a) Merger relief
The merger relief was created prior to the listing and quotation exercise of the Company’s shares on the Main Market of Bursa Malaysia
Securities Berhad in 2009 where MCB implemented a restructuring exercise to consolidate its telecommunications operations in Malaysia
under the Company (“Pre-Listing Restructuring”). The Company acquired the entire issued and paid-up share capital of the subsidiaries
held by MCB. Pursuant to Section 60(4)(a) of the Companies Act, 1965, the premium on the shares issued by the Company as consideration
for the acquisition of the subsidiaries is not recorded as share premium. The difference between the issue price and the nominal value of
shares issued is classified as merger relief.
(b) Reserve arising from reverse acquisition
The reserve arising from reverse acquisition was created during the Pre-Listing Restructuring exercise where Maxis Mobile Services Sdn.
Bhd. was identified as the accounting acquirer in accordance to MFRS 3 “Business Combination”. The difference between the issued equity
of the Company and issued equity of Maxis Mobile Services Sdn. Bhd. together with the deemed purchase consideration of subsidiaries
other than Maxis Mobile Services Sdn. Bhd. and the cash distribution to MCB, is recorded as reserve arising from reverse acquisition.
