The fair value of the instruments granted is measured using generally accepted valuation techniques, taking into account the terms and conditions upon which the instruments are granted. At each reporting date, the entity revises its estimates of the number of options that are expected to vest based on the non-marketing vesting conditions. It recognises the impact of the revision to original estimates, if any, in the statement of operations and comprehensive income, with a corresponding adjustment to equity. When share options are cancelled by the Company, the unrecognized expense is recognized immediately in the statement of operations. The proceeds received, net of any directly attributable transaction costs, are credited to share capital when the options are exercised.
On 1 January, 2012, the Company adopted the amendments required by IFRS 7 "Financial instruments - Disclosures" ("IFRS 7"). The amendments introduce new disclosure requirements for transfers of financial assets including disclosures for financial assets that are not derecognized in their entirety, and for financial assets that are derecognized in their entirety but for which continuing involvement is retained. The adoption of IFRS 7 did not have an impact on the Company's consolidated financial statements.
RECENT ACCOUNTING PRONCOUNEMENTS
The IASB and the International Financial Reporting Interpretations Committee has issued certain pronouncements which will be effective for accounting periods beginning on or after January 1, 2013. Many of these pronouncements are not applicable and have been excluded from the discussion below.
In May 2011, the IASB issued the following IFRS standards and amended standards:
-- IFRS 10 Consolidated Financial Statements,-- IFRS 11 Joint Arrangements,-- IFRS 12 Disclosure of Interests in Other Entities,-- IFRS 13 Fair Value Measurement,-- IAS 27 Separate Financial Statements, and-- IAS 28 Investments in Associates and Joint Ventures
IFRS 10 Consolidated Financial Statements ("IFRS 10") will replace portions of IAS 27 Consolidated and Separate Financial Statements and interpretation SIC-12 Consolidation - Special Purpose Entities. IFRS 10 builds on existing principles by identifying the concept of control as the determining factor in whether an entity should be included within the consolidated financial statements. The standard provides additional guidance to assist in determining control where this is difficult to assess. Under IFRS 10, an investor is deemed to control an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those rights through its power over the investee.
IFRS 11 Joint Arrangements applies when accounting for interests in joint arrangements where there is joint control. Joint arrangements would be classified as either joint operations or joint ventures. The structure of the joint arrangement would no longer be the most significant factor when classifying the joint arrangement as either a joint operation or a joint venture. The option to account for joint ventures (previously called jointly controlled entities) using proportionate consolidation would be removed and equity accounting would be required. Venturers would transition the accounting for joint ventures from the proportionate consolidation method to the equity method by aggregating the carrying values of the proportionately consolidated assets and liabilities into a single line item.