WCT-Page 30 to ProxyForm (2.4MB).pdf - Announcements - Bursa ...
WCT-Page 30 to ProxyForm (2.4MB).pdf - Announcements - Bursa ...
WCT-Page 30 to ProxyForm (2.4MB).pdf - Announcements - Bursa ...
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104<br />
<strong>WCT</strong> Berhad (66538-K)<br />
annual report 2011<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
31 December 2011<br />
cont’d<br />
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES cont’d<br />
2.<strong>30</strong> Employee benefits cont’d<br />
(c) Share-based compensation<br />
2.31 Leases<br />
Employees of the Group receive remuneration in the form of share options as consideration for services<br />
rendered. The cost of these equity-settled transactions with employees is measured by reference <strong>to</strong> the<br />
fair value of the options at the date on which the options are granted. This cost is recognised in profit or<br />
loss, with a corresponding increase in the employee share option reserve over the vesting period. The<br />
cumulative expense recognised at each reporting date until the vesting date reflects the extent <strong>to</strong> which<br />
the vesting period has expired and the Group’s best estimate of the number of options that will ultimately<br />
vest. The charge or credit <strong>to</strong> profit or loss for a period represents the movement in cumulative expense<br />
recognised at the beginning and end of that period.<br />
No expense is recognised for options that do not ultimately vest, except for options where vesting is<br />
conditional upon a market or non-vesting condition, which are treated as vested irrespective of whether<br />
or not the market or non-vesting condition is satisfied, provided that all other performance and/or service<br />
conditions are satisfied. The employee share option reserve is transferred <strong>to</strong> retained earnings upon expiry<br />
of the share options. When the options are exercised, the employee share option reserve is transferred <strong>to</strong><br />
share capital if new shares are issued, or <strong>to</strong> treasury shares if the options are satisfied by the reissuance of<br />
treasury shares.<br />
The proceeds received net of any directly attributable transaction costs are credited <strong>to</strong> share capital and<br />
share premium when the options are exercised.<br />
(a) As lessee<br />
Finance leases, which transfer <strong>to</strong> the Group substantially all the risks and rewards incidental <strong>to</strong> ownership<br />
of the leased item, are capitalised at the inception of the lease at the fair value of the leased asset or, if<br />
lower, at the present value of the minimum lease payments. Any initial direct costs are also added <strong>to</strong> the<br />
amount capitalised. Lease payments are apportioned between the finance charges and reduction of the<br />
lease liability so as <strong>to</strong> achieve a constant rate of interest on the remaining balance of the liability. Finance<br />
charges are charged <strong>to</strong> profit or loss. Contingent rents, if any, are charged as expenses in the periods in<br />
which they are incurred.<br />
Leased assets are depreciated over the estimated useful life of the asset. However, if there is no reasonable<br />
certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over<br />
the shorter of the estimated useful life and the lease term.<br />
Operating lease payments are recognised as an expense in profit or loss on a straight-line basis over the<br />
lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental<br />
expense over the lease term on a straight-line basis.