Yinson Annual Report 2021

276 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 29. Share-based compensation plans (continued) (b) Employees’ Long-Term Incentive Plan (continued) (g) (continued) The expected dividend yield used was based on future estimates, which may not necessarily be the actual outcome. The expected price volatility is based on average historical volatility over a 4-year period on a daily basis. (c) Expenses arising from share-based payment transactions Total expenses arising from share-based payment transactions recognised during the current financial year as part of employee benefits expenses were as follows: Group Company 2021 2020 2021 2020 RM million RM million RM million RM million Share options issued under ESS (Note 29(a)) 1 2 1 3 Share Award Scheme under LTIP (Note 29(b)) 8 - 3 - Equity-settled share-based payment expenses 9 2 4 3 Performance Bonus Scheme under LTIP (Note 29(b)) 7 - 7 - Total share-based payment expenses 16 2 11 3 30. Reserves (a) Foreign currency translation reserve The foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It also included the exchange differences arising from monetary items which form part of the Group’s net investment in foreign operations, where the monetary item is denominated in currencies different from that of the Group's presentation currency. (b) Cash flows hedge reserve The cash flow hedge reserve represents cumulative fair value gain or loss arising from derivatives recognised. The effective portion of cash flow hedges is recognised in reserve while the ineffective portion will be reclassified to profit or loss. (c) Share-based option reserve The share-based option reserve comprises the cumulative value of employee services received for the issue of share options by the Company. The fair value, measured at grant date of the share options granted to these employees is recognised as an employee expense in profit or loss and a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. (d) Share grant reserve The share grant reserve represents the cumulative value of employee services rendered for the issue of share awards under the LTIP by the Company. The fair value of the expected share awards, measured at grant date of the LTIP, is recognised as an expense in profit or loss with a corresponding increase in equity, over the expected period that the employees become unconditionally entitled to the Yinson Shares.