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JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
INTEGRATED ANNUAL REPORT 2011
Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a deduc-
tion, net of tax, from the proceeds.
1.12 Share based payments
Goods or services received or acquired in a share-based
payment transaction are recognised when the goods or
as the services are received. A corresponding increase
in equity is recognised if the goods or services were re-
ceived in an equity-settled share-based payment trans-
action or a liability if the goods or services were acquired
in a cash-settled share-based payment transaction.
When the goods or services received or acquired in a
share-based payment transaction do not qualify for rec-
ognition as assets, they are recognised as expenses.
For equity-settled share-based payment transactions
the goods or services received and the corresponding
increase in equity are measured, directly, at the fair value
of the goods or services received provided that the fair
value cannot be estimated reliably.
If the fair value of the goods or services received cannot
be estimated reliably, their value and the corresponding
increase in equity, indirectly, are measured by reference
to the fair value of the equity instruments granted.
For cash-settled share-based payment transactions, the
goods or services acquired and the liability incurred are
measured at the fair value of the liability. Until the liabili-
ty is settled, the fair value of the liability is re-measured at
each reporting date and at the date of settlement, with
any changes in fair value recognised in profit or loss for
the period.
If the share based payments granted do not vest until
the counterparty completes a specified period of service,
group accounts for those services as they are rendered
by the counterparty during the vesting period, (or on a
straight line basis over the vesting period).
If the share based payments vest immediately the ser-
vices received are recognised in full.
For share-based payment transactions in which the
terms of the arrangement provide either the entity or
the counterparty with the choice of whether the entity
settles the transaction in cash (or other assets) or by issu-
ing equity instruments, the components of that transac-
tion are recorded, as a cash-settled share-based payment
transaction if, and to the extent that, a liability to settle in
cash or other assets has been incurred, or as an equity-
settled share-based payment transaction if, and to the
extent that, no such liability has been incurred.
1.13 Employee benefits
Short-term employee benefits
The cost of short-term employee benefits, (those payable
within 12 months after the service is rendered, such as
paid vacation leave and sick leave, bonuses, and non-
monetary benefits such as medical care), are recognised
in the period in which the service is rendered and are not
discounted.
The expected cost of compensated absences is recog-
nised as an expense as the employees render services
that increase their entitlement or, in the case of non-ac-
cumulating absences, when the absence occurs.
The expected cost of profit sharing and bonus payments
is recognised as an expense when there is a legal or con-
structive obligation to make such payments as a result of
past performance.
1.14 Provisions and contingencies
Provisions are recognised when:
•
the group has a present obligation as a result of a
past event;
•
it is probable that an outflow of resources embody-
ing economic benefits will be required to settle the
obligation; and
•
a reliable estimate can be made of the obligation.
The amount of a provision is the present value of the ex-
Accounting Policies -
Continued
Annual Financial Statements for the 15 months ended 30 September 2011