Annual Report 2012 - ecoWise Holdings Limited

ecoWise Holdings Limitedannual report 20126531 OCTOBER 2012NOTES TO THE FINANCIAL STATEMENTS2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Employee Benefits (Continued)Share-Based CompensationBenefits to employees, including the directors, are provided in the form of share-based paymenttransactions, whereby employees render services in exchange for shares or rights over shares (“equity-settledtransactions”). The fair value of the employee services rendered is determined by reference to the fair valueof the shares awarded or granted, excluding the impact of any non-market vesting conditions. The fairvalue is determined by reference to the fair value of the shares awarded or granted on grant date. This fairvalue amount is charged to the profit or loss over the vesting period of the share-based payment scheme,with the corresponding increase in equity. The value of the charge is adjusted in the profit or loss over theremainder of the vesting period to reflect expected and actual levels of shares vesting, with the correspondingadjustment made in equity. Cancellations of grants of equity instruments during the vesting period (otherthan a grant cancelled by forfeiture when the vesting conditions are not satisfied) are accounted for as anacceleration of vesting, therefore any amount unrecognised that would otherwise have been charged isrecognised immediately in the profit or loss.Income TaxIncome tax expense comprises current tax and deferred tax. Current and deferred taxes are recognised asan income or an expense in the profit or loss. The income taxes payables are accounted using the assetand liability method that requires the recognition of taxes payable or refundable for the current year anddeferred tax liabilities and assets for the future tax consequence of events that have been recognised in thefinancial statements or tax returns.The measurements of current and deferred tax liabilities and assets are based on provisions of the enactedor substantially enacted tax laws at the end of each reporting year; the effects of future changes in tax lawsor rates are not anticipated.Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same incometax authority.