D-Link 2013 Annual Report Download - page 39
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D-LINK CORPORATION AND SUBSIDIARIES
Notes to the consolidated financial statements
(Continued)
The calculation is performed annually by a qualified actuary using the projected unit credit
method. When the calculation results in a benefit to the Company, the recognized asset is limited
to the total of any unrecognized past service costs and the present value of economic benefits
available in the form of any future refunds from the plan or reductions in future contributions to
the plan. In order to calculate the present value of economic benefits, consideration is given to
any minimum funding requirements that apply to any plan in the Company. An economic
benefit is available to the Company if it is realizable during the life of the plan, or on settlement
of the plan liabilities.
When the benefits of a plan are improved, the portion of the increased benefit relating to past
service by employees is recognized in profit or loss on a straight-line basis over the average
period until the benefits become vested. To the extent that the benefits vest immediately, the
expense is recognized immediately in profit or loss.
All actuarial gains and losses arising subsequently from defined benefit plans in other
comprehensive income and transferred to the retained earnings.
(3) Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided.
A liability is recognized for the amount expected to be paid under short-term cash bonus if the
Consolidated Company has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee, and the obligation can be estimated reliably.
(s) Share-based payment
The fair value of share-based payment awards granted to employees on the grant-date is recognized as
employee expenses, with a corresponding increase in equity, over the period that the employees
become unconditionally entitled to the awards. The amount recognized as an expense is adjusted to
reflect the number of awards whose related service and non-market performance conditions are
expected to be met, such that the amount ultimately recognized as an expense is based on the number
of awards that meet the related service and non-market performance conditions at the vesting date.
If the modification of the equity instruments granted the reduced total fair value of the share-based
payment arrangements, the Consolidated Company shall be accounted for the services received as if
that modification had not occurred.
(t) Income Taxes
Income tax expenses include both current taxes and deferred taxes. Except for expenses recognized
directly in other comprehensive income, all current and deferred taxes shall be recognized in profit or
loss.
Current taxes include tax payables and tax deduction receivables on taxable gains (losses) for the year
calculated using the statutory tax rate on the reporting date or the actual legislative tax rate, as well as
tax adjustments related to prior years.