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Glorious Property
104
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
2 Summary of Significant Accounting Policies
(Continued)
(t) EMPLOYEE BENEFITS
(Continued)
(ii) Retirement benefits
(Continued)
The Group also participates in a pension scheme under the rules and regulations of the Mandatory Provident
Fund Scheme Ordinance (“MPF Scheme”) for all employees in Hong Kong. The contributions to the MPF Scheme
are based on minimum statutory contribution requirement of the lower of 5% of eligible employees’ relevant
aggregate income and HK$1,000. The assets of this pension scheme are held separately from those of the Group in
independently administrated funds.
The Group’s contributions to the defined contribution retirement schemes are expensed as incurred.
(u) SHARE-BASED PAYMENTS
The Group operates two equity-settled, share-based compensation plans, under which the Group receives services
from employees as consideration for equity instruments (options) 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;
• excluding the impact of any service and non-market performance vesting conditions (for example, profitability,
sales growth targets and remaining an employee of the entity over a specified time period); and
• including the impact of any non-vesting conditions (for example, the requirement for employees to save).
Non-market vesting 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. 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-marketing vesting conditions. It recognises the impact of the
revision to original estimates, if any, in the consolidated statement of comprehensive income, with a corresponding
adjustment to equity.
The cash subscribed for the shares issued when the options are exercised is credited to share capital (nominal value)
and share premium, net of any directly attributable transaction costs.
(v) REVENUE RECOGNITION
Revenue comprises the fair value of the consideration received or receivable for the sales of properties and services
in the ordinary course of the Group’s activities.
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that the
economic benefits will flow to the Group and that when specific criteria have been met for each of the Group’s
activities as described below.