86
GHL Systems Berhad
(293040-D)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014 (continued)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.16 Employee benefits (continued)
(c) Share-based payments
The Group operates an equity-settled, share-based compensation plan, under which the Group
receives services from employees as consideration for equity instruments of the Group. The fair
value of the employee services received in exchange for the grant of the options is recognised
as an expense.
The total amount to be expensed is determined by reference to the fair value of the options
granted including any market performance conditions but excluding the impact of any non-
market performance and service vesting conditions.
Non-market performance and service conditions are included in assumptions about the number
of options that are expected to vest. The total expense is recognised over the vesting period,
which is the period over which all of the specified vesting conditions are to be satisfied.
In addition, in some circumstances employees could provide services in advance of the grant
date and therefore the grant date fair value is estimated for the purposes of recognising the
expense during the period between service commencement period and grant date.
At the end of each reporting period, the Group revises its estimates of the number of options
that are expected to vest based on the non-market vesting conditions. The Group recognises
the impact of the revision to original estimates, if any, in the profit or loss, with a corresponding
adjustment to equity.
If the options are exercised, the Company issues new shares to the employees. The proceeds
received, net of any directly attributable transaction costs are recognised in ordinary share
capital at nominal value, and any excess would be recognised in share premium.
4.17 Foreign currencies
(a) Functional and presentation currency
Items included in the financial statements of each of the entities of the Group are measured
using the currency of the primary economic environment in which the entity operates (“the
functional currency”). The consolidated financial statements are presented in Ringgit Malaysia,
which is the functional and presentation currency of the Company.
(b) Foreign currency translations and balances
Transactions in foreign currencies are converted into functional currency at rates of exchange
ruling at the transaction dates. Monetary assets and liabilities in foreign currencies at the end
of reporting period are translated into functional currency at rates of exchange ruling at that
date. All exchange differences arising from the settlement of foreign currency transactions and
from the translation of foreign currency monetary assets and liabilities are included in profit
or loss in the period in which they arise. Non-monetary items initially denominated in foreign
currencies, which are carried at historical cost are translated using the historical rate as of the
date of acquisition, and non-monetary items, which are carried at fair value are translated using
the exchange rate that existed when the values were determined for presentation currency
purposes.
