IMI plc annual report 2012

ENGINEERINGADVANTAGECOMPANY NOTES TO THE FINANCIAL STATEMENTSC1. Significant accounting policies (continued)Equity and equity-related compensation benefits (continued)The total amount recharged over the vesting period is determined by reference to the fair value of the options granted,excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-marketvesting conditions are included in assumptions about the number of options that are expected to become exercisable.The fair value of the options at the date of grant is determined based on the Black-Scholes option-pricing model.At each balance sheet date, the Company revises its estimate of the number of options that are expected to vest.It recognises the impact of the revision of original estimates, if any, in the amount recharged to subsidiary undertakings.The proceeds received, net of any directly attributable transaction costs are credited to share capital (nominal value) and sharepremium when the options are exercised.Treasury sharesThe consideration paid by the Company on the acquisition of treasury shares is charged directly to retained earnings in theyear of purchase. If treasury shares are subsequently cancelled the nominal value of the cancelled shares is transferred fromshare capital to the capital redemption reserve.Dividends or shares presented within shareholders’ fundsDividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are authorisedand are no longer at the discretion of the Company. Unpaid dividends that do not meet these criteria are disclosed in thenotes to the financial statements.C2. Remuneration of directorsThe detailed information concerning directors’ emoluments, shareholdings and options are shown in the audited section of theRemuneration Report on pages 48 to 69.C3. Remuneration of auditorsThe detailed information concerning auditor’s remuneration is shown in note 6 of the Group financial statements.C4. Staff numbers and costsThe number of people employed by the Company, including Directors, during the year was 27 (2011: 27) all of whom wereemployed in administrative roles. The costs associated with them were borne by a subsidiary undertaking.The Company participates in the IMI Pension Fund, which is a defined benefit scheme in which the assets are heldindependently. The Company is unable to identify its share of the underlying assets and liabilities of the schemes andconsequently in accordance with FRS17 paragraph 9(b) the Company is required to account for pension costs as if the schemewere a defined contribution scheme. Note 19 to the Group financial statements provides further details regarding the definedbenefit scheme.134 Financial statements