Abacus Property Group – Annual Financial Report 2018

ABACUS PROPERTY GROUP
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
22. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(z) Earnings per stapled security (EPSS)
Basic EPSS is calculated as net profit attributable to stapled security holders, adjusted to exclude costs of
servicing equity (other than distributions) divided by the weighted average number of stapled securities on issue
during the period under review.
Diluted EPSS is calculated as net profit attributable to stapled security holders, adjusted for:
- costs of servicing equity (other than distributions);
- the after tax effect of dividends and interest associated with dilutive potential stapled securities that have
been recognised as expenses; and
- other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential stapled securities;
divided by the weighted average number of stapled securities and dilutive potential stapled securities, adjusted for
any bonus element.
(za) Security based payment plans
Executives of the Group receive remuneration in the form of security based payments, whereby Executives
render services as consideration for equity instruments (equity-settled transactions).
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made, using
an appropriate valuation model and is recognised, together with a corresponding increase in other capital
reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The
cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects
the extent to which the vesting period has expired and the Group’s best estimate of the number of equity
instruments that will ultimately vest. The income statement expense or credit for a period represents the
movement in cumulative expense recognised as at the beginning and end of that period and is recognised in
employee benefits expense (Note 20).
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for which
vesting is conditional upon a market or non-vesting condition. These are treated as vesting irrespective of
whether or not the market or non-vesting conditions are satisfied, provided that all other performance and / or
service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum expense recognised is the expense had
the terms not been modified, if the original terms of the award are met. An additional expense is recognised for
any modification that increases the total fair value of the security based payment transaction, or is otherwise
beneficial to the employee as measured at the date of modification.
When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. This includes any award where non-vesting
conditions within the control of either the entity or the employee are not met.
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