2011 Annual Report - TOM Group

116
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
34 Share option schemes (Continued)
(b)
Valuation of share options
Pursuant to the transitional provision of HKFRS 2, the fair value of services received from
employees in return for share options granted after 7 November 2002 and not yet vested on
1 January 2005 are measured by reference to the fair value of share options granted. The
amount is to be expensed in the consolidated income statement over the vesting period of
the share options granted. The estimate of the fair value of the services received is measured
based on the Black-Scholes model. Key assumptions at the dates of grant are as follows:
Risk-free interest rate (%) 2.07 to 4.22
Expected option life (years) 1 to 7.01
Expected dividend rate (%) 0
Expected volatility (%) 46 to 64
Weighted average fair value at grant date (HK$) 0.55 to 1.16
The expected volatility is based on the historical volatility. The expected option life used has
been adjusted, based on management’s best estimate, for the effects of non-transferability,
exercise restrictions and behavioural considerations.
No share-based compensation costs was recognised during the year (2010: Nil).
35 Reserves
Company
Share
Capital
premium Capital Contributed redemption Accumulated
account reserve surplus reserve losses Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
At 1 January 2010 4,100,475 38,683 23,565 776 (3,102,046) 1,061,453
Loss for the year – – – – (27,395) (27,395)
At 31 December 2010 4,100,475 38,683 23,565 776 (3,129,441) 1,034,058
At 1 January 2011 4,100,475 38,683 23,565 776 (3,129,441) 1,034,058
Loss for the year – – – – (98,903) (98,903)
At 31 December 2011 4,100,475 38,683 23,565 776 (3,228,344) 935,155
TOM Group Limited