ASX ANNOUNCEMENT Bega Cheese Limited ... - Open Briefing

Financial Statements
Year Ended 30 June 2011
Notes to the Financial Statements (cont.)
v. Employee Benefits
Short-term Obligations
Liabilities for wages and salaries, including non monetary benefits, annual leave and accumulating sick leave expected
to be settled 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 liability for annual leave and accumulating sick leave is
recognised in the provision for employee benefits. All other short term employee benefit obligations are presented as
payables.
Other Long-term Employee Benefit Obligations
The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of
the period in which the employees render the related service is recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services provided by employees
up to the end of the reporting period. Consideration is given to expected future wage and salary levels, experience of
employee departures and period of service. Expected future payments are discounted using market yields at the end of
the reporting period on national government bonds with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows.
Retirement Benefit Obligations
All employees of the Group are entitled to benefits from the Group’s superannuation plan on retirement, disability or
death. All employees receive fixed contributions from the Group and the Group’s legal or constructive obligation is
limited to these contributions.
Share-Based Payments
During the year, Bega Cheese provided for share-based compensation benefits to be paid under the Employee Share
Scheme. Information relating to this scheme is set out in Note 32. The fair value of shares granted under the Bega
Cheese Employee Share Scheme is recognised as an employee benefits expense with a corresponding increase in
equity. The total amount to be expensed is determined by reference to the fair value of the shares granted.
w. Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax, from the proceeds.
x. Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
y. Earnings per share
i. Basic earnings per share
Basic earnings per share is calculated by dividing:
� The profit attributable to owners of the Company,
� By the weighted average number of ordinary shares outstanding during the financial year.
ii. Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account:
� The after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares,
and
� The weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
z. Research and Development Costs
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Bega Cheese Limited 2011 Annual Report 38