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1.22 Foreign currencies
Transactions in foreign currencies are translated at the rates of exchange ruling at the transaction date. Monetary assets and liabilities in
foreign currencies are translated at the rates of exchange ruling at the reporting date. Translation differences are generally recognised in the
statement of profit or loss.
Non-monetary assets and liabilities are measured based on historical cost in a foreign currency are translated at an exchange rate at the date
of the transaction.
1.23 Share-based payments
The Bidcorp Incentive Scheme (BIS) grants replacement rights, share appreciation rights (SARs), conditional share plan awards (CSPs) to
acquire shares in the holding company, Bidcorp, to executive directors, management and staff. The fair value of options granted is recognised
as an employee expense with a corresponding increase in equity. All Bidcorp share-based payment schemes are treated as equity-settled
share-based payment schemes at a group and subsidiary level. The fair value is measured at grant date and spread over the period during
which the employees become unconditionally entitled to the options.
The fair value of the options is measured using a binomial model, taking into account the terms and conditions upon which the options
were granted. The amount recognised as an expense is adjusted to reflect the number of awards for which related service and non-market
performance conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of
awards that meet the related service and non-market performance conditions at the vesting date.
1.24 Employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid
if the group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
The group’s liability for post-retirement benefits, accruing to past and current employees in terms of defined benefit schemes, is actuarially
calculated. Where the plan is funded, the obligation is reduced by the fair value of the plan assets. Unfunded obligations are recognised as a
liability in the financial statements.
The projected unit credit method is used to determine the present value of the defined benefit obligations and the related current service cost
and, where applicable, past service cost.
Actuarial gains or losses in respect of defined benefit plans are recognised in other comprehensive income.
However, when the actuarial calculation results in a benefit to the group, the recognised asset is limited to the net total of any unrecognised
past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
Past service costs are recognised in the statement of profit or loss in the period of a plan amendment.
Liabilities for employee benefits which are not expected to be settled within 12 months are discounted using the market yields at the
statement of financial position date on high-quality bonds with terms that most closely match the terms of maturity of the related liabilities.
Contributions to defined contribution pension plans are recognised as an expense in the statement of profit or loss as incurred.
1.25 Provisions
Provisions are recognised when the group has a legal or constructive obligation as a result of past events, for which it is probable that an
outflow of economic benefits will occur, and where a reliable estimate can be made of the amount of the obligation. Where the effect of
discounting is material, provisions are discounted. The discount rate used is a pre-tax rate that reflects current market assessments of the
time value of money and, where appropriate, the risks specific to the liability.
A provision for restructuring is recognised when the group has approved a detailed and formal restructuring plan and the restructuring has
either commenced or has been announced publicly. Future operating costs are not provided for.
A provision for dismantling and site restoration is calculated as the present value of the estimated cost of dismantling and removing items and
restoring the site in which they are located when the legal or constructive obligation arises or when the damage to the site occurs.
FINANCIAL OVERVIEW
Notes to the consolidated financial statements
for the year ended June 30
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
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