Maxis Berhad
Annual Report 2014
112
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(t) Employee benefits (continued)
(iv) Share-based compensation benefits (continued)
The fair value of share options is measured using a modified Black Scholes model. Measurement inputs include share price
on measurement date, exercise price of the instrument, expected volatility (based on weighted average historical volatility
adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based
on maturity of the share options), expected dividends and the risk-free interest rate (based on data from recognised financial
information sources). The fair value of shares acquired is measured using the observable market price of the shares at the
grant date. Non-market vesting conditions attached to the transactions are not taken into account in determining fair value.
When share options are exercised, the proceeds received from the exercise of the share options together with the corresponding
share-based payments reserve, net of any directly attributable transaction costs are transferred to share capital (nominal
value) and share premium. If the share options expire or lapse, the corresponding share-based payments reserve attributable
to the share options are transferred to retained earnings.
When shares of the Company are acquired from the open market at market price, the transactions are recorded in share-
based payments reserve.
In the separate financial statements of the Company, the share options granted and shares acquired, over the Company’s
equity instruments for the employees of subsidiary undertakings in the Group, is treated as a capital contribution. The fair
value of employee services received, measured by reference to the grant date fair value, is recognised over the vesting period
as an increase to investment in subsidiary undertakings, with a corresponding credit to equity.
(u) Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary
course of the Group’s and of the Company’s activities. The Group’s revenue is shown net of service tax, returns, rebates, discounts
and after eliminating sales within the Group.
The Group and the Company recognise revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and specific criteria have been met for each of the Group’s and of the Company’s activities
as described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale
have been resolved. The Group and the Company base their estimates on historical results, taking into consideration the type of
customer, the type of transaction and the specifics of each arrangement.
(i) Telecommunications revenue
Revenues from mobile postpaid services and fixed line services are recognised at the time of customer usage and when
services are rendered. Service discounts and incentives are accounted as a reduction of revenue when granted.
Unutilised amounts on certain mobile postpaid rate plans are deferred up to one month. Unutilised amounts exceeding one
month are recognised as breakage revenue.
