ANNUAL REPORT 2012 - TiGenix

Deferred tax assets and liabilities are measured
based on the expected manner of realisation
or settlement of assets and liabilities, using tax
rates that have been enacted or substantively
enacted at the balance sheet date.
11.5.2.18. Financial liabilities
Financial liabilities measured at amortized
cost, including borrowings, are initially
measured at fair value, net of transaction
costs. They are subsequently measured at
amortized cost using the effective interest
method, with interest expense recognized on
an effective yield basis.
The effective interest method is a method of
calculating the amortized cost of a financial
liability and of allocating interest expense
over the relevant period. The effective
interest rate is the rate that exactly discounts
estimated future cash payments through
the expected life of the financial liability, or,
where appropriate, a shorter period, to the
net carrying amount on initial recognition.
The Group’s financial liabilities measured at
amortized cost comprise long-term financial
debt, other non-current liabilities, short-term
financial debt and trade and other payables.
11.5.2.19. Trade payables
Trade payables are not interest bearing and
are stated at their nominal value.
11.5.2.21. Employee benefits
The Group offers a pension scheme with
different premiums depending on job level.
The scheme is generally funded through
payments to the insurance company. The
major part of the pension obligations are
defined contribution plans. A defined
contribution plan is a pension plan under
which the group pays fixed contributions ( %
of annual gross salary). The group has legal
obligations to pay further contributions if
the fund does not hold sufficient assets to
pay all employees the benefits relating to
employees in service. The contributions are
recognized as employee benefit expense
when they are due.
11.5.2.22. Share-based compensation plans
for personnel
The Company has offered equity-settled
share-based payments to employees,
directors and business associates. These
share-based payments are measured at the
fair value of the equity instruments at the
grant date.
The fair value determined at the grant
date of the equity-settled share-based
payments is expensed on a straight-line
basis over the vesting period, based on the
Group’s estimate of equity instruments that
will eventually vest, with a corresponding
increase in equity.
11.5.2.20. Equity instruments
Equity instruments issued by the Company
are recorded in the amount of the proceeds
received, net of direct issue costs.
The estimate of the number of compensation
plans which will be vested is revised at
each reporting date. The change in
estimates will be recorded as expense with
a corresponding correction in equity. At the
moment of exercise of the compensation
plans no adjustments will be made into the
share-based compensation reserve.
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