Air New Zealand 2009 Annual Report Download - page 14

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Share based compensation
All equity options are disclosed in the notes to the financial statements. The fair value (at grant date) of options granted to employees is recognised as
an expense, within the Statement of Financial Performance, over the vesting period of the options, with a corresponding entry to Issued Capital. The
amount recognised as an expense is adjusted at each reporting date to reflect the extent to which the vesting period has expired and management’s
best estimate of the number of share options that will ultimately vest.
Termination costs
Termination costs are recognised as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to a formal
detailed plan to terminate employment before the normal retirement date.
PROVISIONS
A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of
economic benefits will be required to settle the obligation, and the provision can be reliably measured.
AIR NEW ZEALAND
STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
FOR THE YEAR TO 30 JUNE 2009
12