Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.26 Employee benefits (Continued)
(d) Share-based compensation
The Group operates an equity-settled, share-based
compensation plan in which the entity receives services
from employees as consideration for equity instruments of
the Group. The fair value of the employee services received
in exchange for the grant of the options is recognised
as an expense. The total amount to be expensed 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 and remaining an employee of
the entity over a specified time period) and including the
impact of any non-vesting conditions (for example, the
requirement for employees to save).
2
2.26
(d)
Non-market vesting conditions are included in assumptions
about the number of options that are expected to become
exercisable. At each balance sheet date, the entity revises
its estimates of the number of options that are expected
to become exercisable based on the non-marketing
performance and service conditions. It recognises the
impact of the revision of original estimates, if any, in the
consolidated income statement, and a corresponding
adjustment to equity over the remaining vesting period.
2.27 Provisions
The proceeds received net of any directly attributable
transaction costs are credited to share capital (nominal
value) and share premium when the options are exercised.
Provisions for environmental restoration and the resurfacing and
maintenance cost are recognised when the Group has a present
legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the
obligation, and the amount has been reliably estimated. Where
the Group expects a provision to be reimbursed, for example
under an insurance contract, the reimbursement is recognised
as a separate asset but only when the reimbursement is virtually
certain.
2.27
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