Nextmedia ar cover 21june op.co

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4. SIGNIFICANT ACCOUNTING POLICIES (continued)
Employee benefi ts (continued)
(iii) Retirement benefi ts obligations (continued)
The amount recognised in the consolidated balance sheet represents the present value of the defi ned benefi t obligation as adjusted for unrecognised actuarial gains
and losses and unrecognised past service cost, and as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to unrecognised
actuarial losses and past service cost, plus the present value of available refunds and reductions in future contributions to the plan.
(iv) Share options granted to employees of the Company
The fair value of services received determined by reference to the fair value of share options granted at the grant date is expended on a straight-line basis over the
vesting period, with a corresponding increase in equity (share options reserve).
At each balance sheet date, the Group revises its estimates of the number of options that are expected to ultimately vest. The impact of the revision of the estimates,
if any, is recognised in consolidated income statement, with a corresponding adjustment to share options reserve.
At the time when the share options are exercised, the amount previously recognised in share options reserve will be transferred to share premium. When the share
options are forfeited or are still not exercised at the expiry date, the amount previously recognised in share options reserve will be transferred to accumulated profi ts.
The Group has applied HKFRS 2 “Share-based payment” to share options granted on or after 1 April 2005 and those granted after 7 November 2002 that vested after
1 April 2005. In relation to share options granted before 1 April 2005, which had vested before 1 April 2005, no amount has been recognised in the consolidated
fi nancial statements.
Where a grant of share options is cancelled together with the issue of a new grant of share options, the Group determines whether the new grant is a replacement
grant or a separate issue of share options. Where the new grant is considered to be a replacement it is recognised as a modifi cation of the original grant. The fair value
of both the replacement grant and cancelled share options is determined at the date the replacement share options are granted and the difference, the incremental fair
value, is recognised as an expense from the grant date of the replacement issue over the vesting period. The fair value of the cancelled options as determined at date
of the original grant continues to be expensed over the original vesting period.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profi t for the year. Taxable profi t differs from profi t as reported in the consolidated income statement because it excludes items
of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is
calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the consolidated fi nancial statements and the corresponding tax base
used in the computation of taxable profi t, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profi ts will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination)
of other assets and liabilities in a transaction that affects neither the taxable profi t nor the accounting profi t.