Bursa Malaysia • Annual Report 2013
152
Financial Reports
27. Employee benefits (cont’d.)
(b) SGP (cont’d.)
Fair value of shares granted during the financial year
The fair values of shares granted during the financial year were measured at grant date and the assumptions were as follows:
(i) The fair value of RSP shares granted during the year was estimated using a discounted cash flow model, taking into account the vesting conditions
upon which the RSP shares were granted. The weighted average share price at the grant date was RM7.45 (2012: RM6.57). An average expected
dividend yield of 4.7% (2012: 4.5%) was used in measuring the fair values.
(ii) The performance conditions for the PSP includes a non-market based hurdle and a market based hurdle. The non-market based hurdle is valued
using a discounted cash flow model while the market based hurdle uses assumptions underlying the Black-Scholes methodology to produce a
Monte-Carlo simulation. The key assumptions used in these models are as follows:
2013
2012
Share price
RM7.56
RM6.75
Expected dividend yield
4.9%
4.4%
Expected volatility
18.0%
20.0%
Risk free rate
3.3%
3.1%
28. Deferred capital grants
Group
Company
2013
2012
2013
2012
RM’000
RM’000
RM’000
RM’000
At 1 January
9,934
11,850
5,934
7,500
Grant income (Note 4)
(2,166)
(1,916)
(1,155)
(1,566)
At 31 December
7,768
9,934
4,779
5,934
The deferred capital grants of the Group refer to grants for the development of the bond trading platform, the development of clearing facilities and licence
for the order management system for the derivatives market. The deferred capital grant of the Company refers to the grant for the development of the bond
trading platform.
Notes to the Financial Statements
31 December 2013
