Singapore Airlines 2015 Annual Report Download - page 122

Notes to the Financial Statements
31 March 2015
2 Summary of Significant Accounting Policies (continued)
(ac) Income from investments
Dividend income from investments is recognised when the Group’s right to receive the payment is established.
Interest income from investments and fixed deposits is recognised using the eective interest method.
(ad) Employee benefits
(i) Equity compensation plans
Employees of the Group receive remuneration in the form of share options and share awards as consideration for
services rendered.
The Group has in place, the Singapore Airlines Limited Employee Share Option Plan, the SIA Engineering Company
Limited Employee Share Option Plan and the Pre-IPO Tiger Aviation Share Options Scheme for granting of share
options to senior executives and all other employees. The exercise price approximates the market value of the
shares at the date of grant.
The Group has also implemented the Singapore Airlines Limited Restricted Share Plan and Performance Share Plan,
the SIA Engineering Company Limited Restricted Share Plan and Performance Share Plan and Tiger Airways Group
Restricted Share Plan, Performance Share Plan and CEO Restricted Share Grant for awarding of fully paid ordinary
shares to senior executives and key Senior Management, when and aer pre-determined performance or service
conditions are accomplished.
Details of the plans are disclosed in Note 5 to the financial statements.
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the options
or awards at the date on which the share options or awards are granted. In valuing the share options and share
awards, no account is taken of any performance conditions, other than conditions linked to the price of the shares
of the Company and non-vesting conditions.
This cost is recognised in the profit and loss account as share-based compensation expense, with a corresponding
increase in the share-based compensation reserve, over the vesting period in which the service conditions are
fulfilled, ending on the date on which the relevant employees become fully entitled to the award (“the vesting date”).
Non-market vesting conditions are included in the estimation of the number of shares under options that are expected
to become exercisable on the vesting date. At the end of each reporting period, the Group revises its estimates of
the number of shares under options that are expected to become exercisable on the vesting date and recognises
the impact of the revision of the estimates in the profit and loss account, with a corresponding adjustment to the
share-based compensation reserve over the remaining vesting period.
No expense is recognised for options or awards that do not ultimately vest, except for options or awards where
vesting is conditional upon a market condition, which are treated as vested irrespective of whether or not the market
condition is satisfied, provided that all other performance and/or service conditions are satisfied.
The share-based compensation reserve is transferred to general reserve upon cancellation or expiry of the vested
options or awards. When the options are exercised or awards are released, the share-based compensation reserve
is transferred to share capital if new shares are issued.
120 FINANCIAL