2012 Annual Report - Media Prima Berhad

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EMPLOYEE BENEFITS (CONTINUED)
(iv) Share-based compensation
The Group operates an equity-settled, share-based compensation plan for its employees i.e. Employee Share
Options Scheme (“ESOS”).
The fair value of the employee services received in exchange for the grant of the share options is recognised
as an expense in the profit or loss as staff cost over the vesting period, with a corresponding increase in equity.
The total amount to be expensed over the vesting period is determined by reference to the fair value of the
share options granted:
– including any market performance conditions;
– excluding the impact of any service and non-market performance vesting conditions (for example,
profitability, sales growth targets and the remaining employee of the entity over a specified time period);
and
– excluding the impact of any non-vesting conditions (for example, the requirement for employees to save).
Non-market vesting conditions are included in the assumptions about the number of options that are expected
to vest. At each balance financial position, the Group revises its estimates of the number of share options that
are expected to vest. It recognises the impact of the revision of original estimates, if any, in the profit or loss,
with a corresponding adjustment to equity.
When the options are exercised, the Company issues new shares. The proceeds received net of any directly
attributable transaction costs are credited to share capital (nominal value) and share premium when the options
are exercised. When options are not exercised and lapsed, the share option reserve is transferred to retained
earnings.
Recharges made by the Company in respect of options granted to subsidiaries are accounted for as amounts
receivable from subsidiaries.
TRADE PAYABLES
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or
less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Non-current trade payables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method.
PROVISIONS
RADIO OUTDOOR
NETWORKS
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events,
when it is probable that an outflow of resources will be required to settle the obligation, and when a reliable estimate
of the amount can be made. Where the Group expects a provision to be reimbursed, the reimbursement is
recognised as a separate asset but only when the reimbursement is virtually certain. Provisions are not recognised
for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
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annual
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2012
From Our Perspective Who We Are Our Strategy & Achievements Our Performance Our Responsibility Our Leadership Corporate Governance The Financials Additional Information