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Unformatted text preview: losses are recognized in the consolidated
statement of operations in the current period.
xiii. Impairment of financial assets
The Company assesses at each reporting date whether there is objective evidence that a financial asset or a
group of financial assets is impaired. In the case of investments classified as available-for-sale, an evaluation is
made as to whether a decline in fair value is significant or prolonged based on an analysis of indicators such as
market price of the investment and significant adverse changes in the technological, market, economic or legal
environment in which the investee operates.
If an available-for-sale financial asset is impaired, an amount equal to the difference between its carrying value
and its current fair value is transferred from AOCI and recognized in the consolidated statement of operations.
Reversals of impairment charges in respect of equity instruments classified as available-for-sale are not
recognized in the consolidated statement of operations.
xiv. Share-based payments
The Company has a number of equity-settled and cash-settled share-based compensation plans under which the
Company issues either equity instruments or makes cash payments based on the value of the underlying equity
instrument of the Company. The Company’s share-based compensation plans are comprised of the following:
Stock Option Plan: Stock options are equity-settled. The fair value of stock options at the grant date is
estimated using the Black-Scholes option pricing model. Compensation expense is recognized over the stock
option vesting period based on the number of options estimated to vest. Management estimates the number of
awards likely to vest at the time of a grant and at each reporting date up to the vesting date. Annually, the
estimated forfeiture rate is adjusted for actual forfeitures in the period. On exercise of options, the shares are
issued from treasury.
Restricted Share Unit Plan: Restricted share units (“RSUs”) are equity-settled and are fair valued based on the
market value of the shares at the grant date. The Company’s compensation expense is recognized o...
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- Spring '14