Notes to the Financial Statements
(Cont’d)
For the financial year ended 30 April 2016
(In Singapore Dollar)
STAMFORD TYRES CORPORATION LIMITED
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DRIVING IT UP
2.
Summary of significant accounting policies (cont’d)
2.19
Employee benefits (cont’d)
(c)
Executives’ Share Option Scheme (cont’d)
No expense was recognised for options that do not ultimately vest, except for option where vesting
was conditional upon a market condition, which were treated as vested irrespective of whether
or not the market condition was satisfied, provided that all other performance and/or service
conditions were satisfied.
Where the terms of an equity-settled transaction award were modified, the minimum expense
recognised was the expense as if the terms had not been modified, if the original terms of the
award were met. An additional expense was recognised for any modification that increased the total
fair value of the share-based payment transaction, or was otherwise beneficial to the employee as
measured at the date of modification.
Where an equity-settled transaction award was cancelled, it was treated as if it had vested on the
date of cancellation, and any expense that otherwise would have been recognised for services
received over the remaining vesting period was recognised immediately. However, if a new award
was substituted for the cancelled award, and designated as a replacement award on the date that
it was granted, the cancelled and new awards were treated as if they were a modification of the
original award, as described in the previous paragraph.
2.20
Hire-purchases
Hire-purchases, which effectively transfer to the Group substantially all the risks and benefits incidental to
ownership of the hire-purchase item, are capitalised at the present value of the minimum hire-purchase
payments at the inception of the hire-purchase term. Any initial direct costs are also added to the amount
capitalised. Hire-purchase payments are apportioned between the finance charges and reduction of the
hire-purchase liability so as to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are charged directly to profit or loss. Depreciation on the relevant assets is charged to
profit or loss on the basis outlined in Note 2.7.
2.21
Operating leases
As lessee
Leases where substantially all the risks and benefits of ownership of the lease effectively remain with the
lessor are classified as operating leases.
Operating lease payments are recognised as an expense in profit or loss on a straight line basis over the
lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of
rental expense over the lease term on a straight line basis.
