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SEE HUP SENG LIMITED
Annual Report 2012
55
Notes to the Financial Statements
31 DECEMBER 2012
2 Significant Accounting Policies (Continued)
(s) Employee Compensations (Continued)
(iii) Share-based compensation
The Group has in place the See Hup Seng Employee Share Option Scheme for granting share
options to confirmed group employees, including Directors.
The cost of equity-settled transactions with employees is measured by reference to the fair value
at the date on which the share options are granted. At each balance sheet date, the Group revises
its estimates of the number of options that are expected to become exercisable. It recognises
the impact of the revision of original estimates in profit or loss and a corresponding adjustment
to share option reserve.
The cost of equity-settled transactions is recognised, together with a corresponding increase
in the share option reserve, over the period in which the performance and/or service conditions
are fulfilled, ending on the date which the relevant employees become fully entitled to the award
(“the vesting period”). The cumulative expense recognised for equity-settled transactions at each
reporting date until the vesting date reflects the extent to which the vesting period has expired and
the Group’s best estimate of the number of equity instruments that will ultimately vest. The profit
or loss charge or credit for a period represents the movement in cumulative expense recognised
as at the beginning and end of that period.
When the options are exercised, the proceeds received net of any directly attributable transaction
costs and the related balance previously recognised in the share option reserve are credited to
share capital account when new ordinary shares are issued, or to the treasury shares account
when treasury shares are re-issued to the employees.
(t) Currency Translation
(i) Functional and presentation currency
The financial statements of each entity in the Group are measured using the currency that best
reflects the economic substance of the underlying events and circumstances relevant to each entity
(the “functional currency”). The financial statements are presented in Singapore dollars, which is
the functional and presentation currency of the Company.
(ii) Transactions and balances
In preparing the financial statements of the individual entities, transactions in a currency other
than the entity’s functional currency (“foreign currency”) are translated using the exchange rates
prevailing at the dates of such transactions. Currency translation gains and losses resulting from
settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in profit or loss. Non-
monetary items carried at fair value that are denominated in foreign currencies are retranslated at
the rates prevailing at the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.