Asus 2015 Annual Report Download - page 186

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(C) Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of
employment as a result from either the Group’s decision to terminate an employee’s
employment before the normal retirement date, or an employee’s decision to accept an
offer of redundancy benefits in exchange for the termination of employment. The Group
recognizes expense when it can no longer withdraw an offer of termination benefits or it
recognizes related restructuring costs, whichever is earlier. Benefits that are expected to
be due more than 12 months after financial reporting date shall be discounted to their
present value.
(D) Employees’ compensation, directors’ and supervisors’ remuneration
Employees’ compensation, directors’ and supervisors’ remuneration are recognized as
expenses and liabilities, provided that such recognition is required under legal or
constructive obligation and those amounts can be reliably estimated. Any difference
between the resolved amounts and the subsequently actual distributed amounts is
accounted for as changes in estimates. If employee compensation is distributed by shares,
the Group calculates the number of shares based on the closing price at the previous day
of the board meeting resolution.
(28) Employee share-based payment
A. For the equity-settled share-based payment arrangements, the employee services received are
measured at the fair value of the equity instruments granted at the grant date, and are
recognized as compensation cost over the vesting period, with a corresponding adjustment to
equity. The fair value of the equity instruments granted shall reflect the impact of market
vesting conditions and non-market vesting conditions. Compensation cost is subject to
adjustment based on the service conditions that are expected to be satisfied and the estimates of
the number of equity instruments that are expected to vest under the non-market vesting
conditions at the end of the financial reporting period. Ultimately, the amount of compensation
cost recognized is based on the number of equity instruments that eventually vest.
B. Restricted stocks:
(A) The issued subsidiary uses the date notifying employees the number of shares of
employees’ stock bonus as the grant date.
(B) Restricted stocks issued to employees are measured at the fair value of the equity
instruments granted at the grant date, and are recognized as compensation cost over the
vesting period.
(C) For restricted stocks where those stocks do not restrict distribution of dividends to
employees and employees are not required to return the dividends received if they resign
during the vesting period, the Group recognizes the fair value of the dividends received by
the employees who are expected to resign during the vesting period as compensation cost