77
CONSOLIDATED FINANCIAL STATEMENTS
DRIVING GROWTH FROM WITHIN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(All amounts in US$‘000’s unless otherwise stated)
The following temporary differences do not result in deferred tax assets or liabilities:
• the initial recognition of assets or liabilities, not arising in a business combination, that does not affect accounting
or taxable income;
• goodwill; and,
• investments in subsidiaries, associates and jointly controlled entities where the timing of reversal of the temporary
differences can be controlled and reversal in the foreseeable future is not probable.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to the offset current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company
intends to settle its current tax assets and liabilities on a net basis.
l) Share-Based Payments
The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of share
options and other equity-settled share-based payment arrangements are recorded based on the estimated fair value at
the grant date and charged to earnings over the vesting period. Where awards are forfeited because non-market based
vesting conditions are not satisfied, the expense previously recognized is proportionately reversed in the period the
forfeiture occurs.
Share-based payment expense relating to cash-settled awards, including deferred and restricted share units is accrued
over the vesting period of the units based on the quoted market value of Company’s common shares. As these awards
will be settled in cash, the expense and liability are adjusted each reporting period for changes in the underlying share
price.
i.
Stock Option Plan
The Company applies the fair value method of accounting for all stock option awards. Under this method, the Company
recognizes a compensation expense for all stock options awarded to employees, based on the fair value of the options
on the date of grant which is determined by using the Black-Scholes option pricing model. The fair value of the options
is expensed over the graded vesting period of the options.
ii.
Deferred Share Unit (“DSU”) Plan
The Company’s DSU compensation liability is accounted for based on the number of units outstanding and the quoted
market value of the Company’s common shares at the financial position date. The year-over-year change in the deferred
share unit compensation liability is recognized in income.
iii. Restricted Share Unit (“RSU”) Plan
The Company’s RSU compensation liability is accounted for based on the number of units outstanding and the quoted
market value of the Company’s common shares at the financial position date. The Company recognizes a compensation
cost in operating income on a graded vesting basis for each RSU granted equal to the quoted market value of the
Company’s common shares at the date of which RSUs are awarded to each participant prorated over the performance
period and adjusts for changes in the fair value until the end of the performance date. The cumulative effect of the
change in fair value is recognized in income in the period of change.
m) Earnings per Share
Basic earnings per share is computed by dividing net income for the year by the weighted average number of common
shares outstanding during the year.
The diluted earnings per share calculation is based on the weighted average number of common shares outstanding
during the year, plus the effects of dilutive common share equivalents. This method requires that the dilutive effect of
outstanding options issued should be calculated using the treasury stock method. This method assumes that all common
share equivalents have been exercised at the beginning of the year (or at the time of issuance, if later), and that the
funds obtained thereby were used to purchase common shares of the Company at the average trading price of the
common shares during the year, but only if dilutive.
n) Foreign Currency Translation
The presentation currency of the Company is the United States Dollar (“US$”).
The functional currency of each of the entities in the group is the US$, with the exception of the parent entity and certain
holding companies which have a Canadian dollar functional currency.
2. Basis of Consolidation and Summary of Significant Accounting Policies (Continued)
k.) Income Taxes (Continued)
