LensCrafters 2015 Annual Report Download - page 106

Notes to the consolidated financial statement as of December 31, 2015 Page 12 di 68
Prior periods service costs are immediately recognized in the consolidated statements of income.
For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a
mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been
paid. The contributions are recognized as employee benefits expenses when they are due. Prepaid contributions are recognized
as an asset to the extent that a cash refund or a reduction in future payments is available.
Provisions for risks
Provisions for risks are recognized when:
1 the Group has a present obligation, legal or constructive, as a result of a past event;
1 it is probable that the outflow of resources will be required; and
1 the amount of the obligation can be reliably estimated.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in
the provision due to passage of time is recognized as interest expense. Risks that are possible are disclosed in the notes. Risks
that are remote are not disclosed or provided for.
Share-based payments
The Company operates a number of equity-settled, share-based compensation plans, under which the entity receives services
from employees as consideration for equity instruments (options or units). The fair value of the employee services received in
exchange for the grant of the options is recognized as an expense. The total amount to be expensed is determined by reference
to the fair value of the options or units granted.
The total expense is recognized over the vesting period, which is the period over which all of the specified vesting and
performance conditions are to be satisfied. At the end of each reporting period, the Company revises its estimates of the number
of options that are expected to vest based on the non-market vesting conditions. It recognizes the impact of the revision to
original estimates, if any, in the consolidated statement of income, with a corresponding adjustment to equity.
Recognition of revenues
Revenue is recognized in accordance with IAS 18—Revenue. Revenue includes: (i) sales of goods (both wholesale and retail);
(ii) rendering of services such as insurance and administrative fees associated with the Group’s managed vision care business,
eye exams and related professional services; and (iii) sales of goods to franchisees along with other revenues from franchisees
such as royalties based on sales and initial franchise fee revenues.
Revenue from the sale of goods is recognized when all of the following conditions have been satisfied:
1 the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
1 the Group retains neither continuing managerial involvement to the degree usually associated with ownership of the
goods;
1 the amount of revenue can be measured reliably;
1 it is probable that the economic benefits associated with the transaction will flow to the Group; and