Advanced Computer Software Group plc Annual report 2013

Notes to the consolidatedfinancial statements continued24 Equity continuedShare trust reserveTransactions of the Company-sponsored EBT are treated as being those of the Company and are therefore reflectedin the Parent Company and Group financial statements. In particular, the EBT’s purchases and sales of shares in theCompany are debited and credited directly to equity. The share trust reserve comprises the costs of shares held bythe EBT.Retained earningsThis represents cumulative net gains and losses recognised in the consolidated income statement.Foreign exchange reserveThe foreign exchange reserve comprises all foreign exchange differences arising from the translation of the financialstatements of foreign operations.25 Share options and management incentivesShare option schemesDuring the year, the Group implemented a new Save As You Earn scheme and granted options to certain employeesunder the existing Enterprise Management Incentive/unapproved share option scheme and Company ShareOption Plan.The total expense recognised for the year from share-based payments was:Equity-settled share-based payment expense 1,246 2,028Enterprise Management Incentive (EMI)/unapproved share option schemeThe EMI scheme was approved by HM Revenue and Customs for share option grants that fall within the EMI rules.Options granted that do not fall within the EMI rules are deemed to be unapproved share options. Under the termsof this scheme all employees and directors of the Group are eligible to participate. The options entitle the recipientto acquire ordinary shares in the Company at an exercise price determined at the date of grant.Marwyn Participation Option (MPO) and Management Participation Shares (MPS)The MPO is an option over the Company’s shares which was held by Marwyn Management Partners LLP (‘Marwyn’).On 17 September 2012 Marwyn exercised its option in the MPO scheme and was awarded 13,307,424 sharesin the Company at an exercise price of 10p per share.The key executives of the Group have subscribed for MPS shares in Drury Lane (Jersey) Limited, a subsidiaryof the Company.Accounting for MPO and MPSThe MPO and MPS schemes are share-based payment arrangements and awards made under each scheme to therelevant counterparty are made using similar terms and conditions.In exchange for the MPO, Marwyn agreed to assist the Company in meeting its business strategy by providingadvice and assistance in evaluating the merits of strategic acquisitions and support in the overall market positioningof the Group in order to create additional shareholder value. These services were provided for the duration of thevesting period. The Company was not separately charged for any of these services by Marwyn. At inception of thescheme, the Company judged these services to be substantially similar to those provided by a non-executive directorof the Group. Consequently, the Company has accounted for this scheme under IFRS2 as if the services wererendered by an employee.2013£’0002012£’00066Advanced Computer Software Group plcAnnual Report 2013