Annual Report 2011 - QuamIR

Notes to the Consolidated Financial StatementsFor the year ended 31 March 20113. Significant Accounting Policies (continued)Share-based payment arrangementsShare options granted by the Company to employees of the Group in an equity-settledshare-based payment arrangementFor grants of share options that are conditional upon satisfying specified vesting conditions, the fairvalue of services received is determined by reference to the fair value of share options granted at thegrant date and is expensed on a straight-line basis over the vesting period, with a corresponding increasein equity (share options reserve).At the end of the reporting period, the Group revises its estimates of the number of options that areexpected to ultimately vest. The impact of the revision of the original estimates, if any, is recognizedin profit or loss such that the cumulative expense reflects the revised estimate, with a correspondingadjustment to share options reserve.For share options that vest immediately at the date of grant, the fair value of the share options grantedis expensed immediately to profit or loss.When share options are exercised, the amount previously recognized in share options reserve will betransferred to share premium. When share options are forfeited after the vesting date or are still notexercised at the expiry date, the amount previously recognized in share options reserve will be transferredto retained earnings/(accumulated losses).Share options granted to consultants in an equity-settled share-based paymentarrangementShare options issued in exchange for goods or services are measured at fair values of the goods orservices received, unless that fair value cannot be reliably measured, in which case the goods or servicesreceived are measured by reference to the fair value of the share options granted. The fair values ofgoods or services received are recognized as expenses immediately, unless the goods or services qualifyfor recognition as assets. Corresponding adjustment has been made to equity (share options reserve).Equity instruments granted for acquisitions of assetsEquity instruments (shares and conversion options) issued in exchange for goods or services aremeasured at the fair values of the goods or services received, unless that fair value cannot be reliablymeasured, in which case the goods or services received are measured by reference to the fair valueof the equity instruments granted. The fair values of the goods or services received are recognized asexpenses immediately, unless the goods or services qualify for recognition as assets.Annual Report 201157