(u) Share-based payments The Group and the Company operates an equity-settled, share-based compensation plan. The value of the employee services received in exchange for the grant of options is recognised as an expense with a corresponding increase in the share option reserve over the vesting period. The total amount to be recognised over the vesting period is determined by reference to the fair value of the options granted on grant date. At each balance sheet date, the Group and the Company revise its estimates of the number of shares under options that are expected to become exercisable on the vesting date and recognise the impact of the revision of the estimates in profit or loss, with a corresponding adjustment to the share option reserve over the remaining vesting period. When the options are exercised, the proceeds received (net of transaction costs) and the related balance previously recognised in the share option reserve are credited to the share capital account. In the event an employee ceases to be employed by the Group and the Company, the employee retains the ownership of the shares already subscribed to. Any share options which are not yet exercised at the date of the cessation of employment lapse within 60 days of such date and are treated as forfeited. (v) Non-controlling put options Put option liability issued to non-controlling interest, to be settled in cash by the Company, which do not grant present access to ownership interest to the Group is recognised at present value of the redemption amount. At the end of each reporting period, the put option liability with non-controlling interest is accounted for at fair value with changes to the put option liability being recognised in profit or loss (refer to Note 20). 3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of the Group’s and the Company’s financial statements require management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. In the process of applying the Group’s and the Company’s accounting policies, management has made the following judgements and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Existing circumstances and assumptions about future developments may change due to circumstances beyond the Group’s and the Company’s control and are reflected in the assumptions if and when they occur. Items with the most significant effect on the amounts recognised in the financial statements with substantial management judgement and/or estimates are collated below: (a) Incremental Borrowing rate The Group and the Company apply a number of significant judgements to estimate the Incremental Borrowing Rate for leases, such as: a. the credit risk, b. the term of the lease, and c. the economic environment (the country, the currency and the date that the lease is entered into) in which the transaction occurs. Refer to note 23 (b) Calculation of ECL allowance The Group and the Company apply a number of significant judgements in applying the accounting requirements for the calculation of ECL, such as: • Determining criteria for significant increase of credit risk: ECL are measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL for stage 2 or stage 3 assets. An asset moves to stage 2 when its credit risk has increased significantly since initial recognition. IFRS 9 does not define what constitutes a significant increase in credit risk. In assessing whether the credit risk of an asset has significantly increased the Group and the Company take into account qualitative and quantitative reasonable and supportable forward-looking information. • Choosing appropriate models and assumptions used: The Group and the Company use model and assumptions in measuring fair value of financial assets as well as in estimating ECL. Refer to note 10, 15 ,16, 17 and 18. Judgement is applied in identifying the most appropriate model for each type of asset, as well as for determining the assumptions used in these models, including assumptions that relate to key drivers of credit risk. 141 Introduction Group Overview Leadership Strategy & Performance Risk Management Corporate Governance Statutory Disclosures Financial
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