Kia 2004 Annual Report Download - page 85

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(2) Stock option cost
Stock options granted as of December 31, 2004 are summarized below.
If all of the stock options, which require at least two-year continued service, are exercised, new shares or treasury stock will be issued in accordance with the decision
of the Board of Directors. The Company calculates the total compensation expense using the option-pricing model. In the model, the risk-free rate of 10.0 percent
and 4.74 percent, the expected exercise period of 5.5 years and the expected variation rate of stock price of 0.8387 and 0.9504 are adopted for the first and second
stock options, respectively. Total compensation expense has been accounted for as a charge to current operations and a credit to capital adjustments over the
required period of service from the grant date using the straight-line method.
Com pensation expenses associated w ith stock options of ￦921 million (US$882 thousand) has been charged to current operations and the com pensation
expenses of ￦332 million (US$318 thousand), which were expensed before December 31, 2003, have been reversed due to cancellation of 180,000 shares of the
second grant stock options during this period. Com pensation expenses of ￦128 million (US$122 thousand) remain to be expensed over the required period of
service as of December 31, 2004.
18. FOREIGN CURRENCY DENOMINATED ASSETS AND LIABILITIES:
The assets and liabilities denom inated in foreign currencies as of December 31, 2004 and 2003 are summ arized below.
85
KIA Motors_2004 Annual Report
358,557
137,261
12,074
2,486
265
12,741,766
737,344
243,953
2,037
2,877
172
509
200
–
–
USD
EUR
CS
PD
AUD
JPY
USD
EUR
AUD
DM
PD
DK
SF
SK
CS
336,251
77,299
9,110
–
265
18,812,581
666,019
16,588
2,119
3,596
329
–
124
100
1
USD
EUR
CS
PD
AUD
JPY
USD
EUR
AUD
DM
PD
DK
SF
SK
CS
2004 2003 2004 2003
374,262
195,317
10,467
4,995
215
585,256
128,956
769,640
347,136
1,656
2,093
345
97
184
–
–
1,250,107
￦
￦
￦
￦
402,761
116,149
8,437
–
238
527,585
210,626
797,757
24,924
1,900
2,763
700
–
119
17
1
1,038,807
￦
￦
￦
￦
Assets
Liabilities
Foreign currencies (in thousands) Korean won (in millions)
3,578
(56)
(2,220)
1,302
＄
＄
950,000
(15,000)
(589,289)
345,711
3,735
(59)
(2,317)
1,359
March 17, 2000
March 18, 2003
5,500
￦
￦
￦
U.S dollars (Note 2)
(In thousands)
Korean won
(In millions)
Shares
U.S dollars (Note 2)
(In thousands)
Korean won
(In millions)
Compensation expenses Compensation expenses
Shares
First Second
Description
695,000
(265,000)
–
430,000
2,974
(1,134)
–
1,840
February 20, 2003
February 21, 2006
8,200
￦
￦
￦
2,849
(1,086)
–
1,763
＄
＄
Granted
Cancelled
Exercised
Remaining
Grant date
Beginning date
of exercise
Exercise price