Basic HTML Version
Escher Group Holdings plc
Annual report 2011
30
for the year ended 31 December 2011
Accounting policies and estimation techniques
continued
(xxi) Share based compensation
The Group operated a share based compensation plan, under which the entity received services from certain employees
as consideration for shares of the Group. The fair value of the employee services received in exchange for the grant of the
shares is recognised as an expense. The total amount to be expensed is determined on the measurement date, based on
market prices if available, taking into account the terms and conditions upon which the shares were granted.
For transactions with parties other than employees, who receive shares for goods or services received, the fair value of the
goods or services received and the corresponding increase in equity, are measured at the date the entity obtains the goods
or the counterparty renders service.
(xxii) Debt for equity swaps
Where the entity issues equity instruments to a creditor of the entity to extinguish all or part of a financial liability, the entity
measures the fair value of the equity instruments issued, by reference to the listed share price, and the creditor is reduced
by that amount, with the corresponding entry to equity.
(xxiii) Exceptional items
The Group has adopted an income statement format which seeks to highlight significant items within Group results for the year.
The Group believe that this presentation provides additional analysis as it highlights one-off items. Such items may include costs
of refinancing, restructuring, impairment of assets, litigation settlements, legislative changes and other significant non-recurring
costs. Judgement is used by the Group in assessing the particular items, which by virtue of their scale and nature, are disclosed
in the Group income statement and related notes as exceptional items.