axiata group berhad | annual report 2015
143
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(u) Employee benefits
(i) Short term employee benefits
Wages, salaries, paid annual leave, bonuses and non-monetary benefits are accrued in the period in which the associated services are
rendered by employees of the Group and the Company.
(ii) Contribution to Employees Provident Fund (“EPF”)
The Group’s and the Company’s contributions to EPF are charged to the profit or loss in the period to which they relate. Once the
contributions have been paid, the Group and the Company have no further payment obligations. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in the future payments is available.
(iii) Termination benefits
Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement date or whenever an
employee accepts voluntary redundancy in exchange for these benefits. The Group and the Company recognise termination benefits
when it is demonstrably committed to either terminate the employment of current employees according to a detailed formal plan without
possibility of withdrawal or to provide termination benefits that is within the scope of MFRS 137 and involves the payment of termination
benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number
of employees expected to accept the offer. Benefits falling due more than twelve (12) months after the end of the reporting period are
discounted to present value.
(iv) Share-based compensation
The Group operates equity-settled and cash-settled share-based compensation plans by the Company and certain subsidiaries.
Employee services received in exchange for the grant of options/shares are recognised as an expense in the profit or loss over the vesting
period of the grant, with a corresponding increase in equity.
The total amount to be expensed over the vesting period is determined by reference to the fair value of the equity instruments granted:
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including any market performance conditions;
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excluding the impact of any service and non-market performance vesting conditions; and
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excluding the impact of any non-vesting conditions.
Non-market vesting conditions are included in the assumptions on the number of options/shares that are expected to vest. At the end
of the reporting period, the Group and the Company revise its estimates of the number of options/shares that are expected to vest. It
recognises the impact of the revision of original estimates, if any, in the profit or loss, with a corresponding adjustment to equity.
When the options are exercised and RSA is vested, the fair value is credited to share capital (nominal value) and share premium with
corresponding debit to ESOS and RSA reserve and cash received (if any). Recharges made by the Company in respect of options/shares
granted to subsidiaries are accounted for as amounts due from subsidiaries.
For cash-settled share-based payment transactions, the Group measures the employee services acquired and the liability incurred at the
fair value of the liability. Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period
and at the date of settlement, with any changes in fair value recognised in profit or loss for the period.
(v) Post-employment benefit obligations
The Group operates various defined benefit plans in accordance with local conditions and practices in the countries in which it operates.
The plans are generally funded through payments to insurance companies or trustee-administrated funds, determined by periodic actuarial
calculations. A defined benefit plan is a pension plan that is not a defined contribution plan. Defined benefit plans define an amount of
pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and
compensation.
