NOTES TO FINANCIAL STATEMENTS
30 June 2015
Karin Technology Holdings Limited
Annual Report 2015
72
2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
EMPLOYEE BENEFITS (continued)
Share-based payments
(continued)
(a)
Share option scheme (continued)
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. This includes any award where
non-vesting conditions within the control of either the Group or the employee are not met. However, if
a new award is substituted for the cancelled award, and is designated as a replacement award on the
date that it is granted, the cancelled and new awards are treated as if they were a modification of the
original award, as described in the previous paragraph.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of
earnings per share.
(b)
Employee performance share plan
The Group operates an employee performance share plan (the “
Performance Share Plan
”) for the
purpose of motivating participants to optimise performance standards and efficiency and to maintain a
high level of contribution to the Group. Employees and independent directors are eligible to participate
in the plan. Eligible participants receive fully paid shares of the Company free of charge upon achieving a
performance target, whereby employees render services as consideration for the equity instruments (i.e.,
“equity-settled transactions” under IFRS 2).
The remuneration committee of the board of directors will determine the grant of awards to participants
at any time. A participant who is a member of the remuneration committee, shall not be involved in
deliberations in respect of awards issued from the Performance Share Plan.
The Group will record the expense only at the time the awards are granted and shares of the Company
are issued to eligible participants. The amount charges to profit or loss for the grant of awards will be
the same as the closing stock price of the Company on the Singapore Exchange Securities Trading Limited
(the “
SGX-ST
”) at the date of grant when the Group delivers treasury shares in fulfilment of the awards.
Pension schemes
The Group operates a defined contribution Mandatory Provident Fund retirement benefit scheme (the “
MPF
Scheme
”) under the Mandatory Provident Fund Schemes Ordinance for those employees who are eligible to
participate in the MPF Scheme. Contributions are made based on a percentage of the employees’ relevant income
and are charged to profit or loss as they become payable in accordance with the rules of the MPF Scheme. The
assets of the MPF Scheme are held separately from those of the Group in an independently administered fund.
The Group’s employer contributions vest fully with the employees when contributed into the MPF Scheme.
The employees of the Group’s subsidiaries which operate in Mainland China are required to participate in defined
contribution social security schemes operated by the local municipal government. These subsidiaries are required
to contribute certain percentages of their payroll costs to the social security schemes. The contributions are
charged to profit or loss as they become payable in accordance with the rules of the social security schemes.
