for the six months ended September 30, 2009
March 31 |
September 30 |
September 30 |
|
|---|---|---|---|
Rm |
Rm |
Rm |
|
| This reserve represents the cumulative grant date fair value of the equity-settled share-based payment transactions recognised in employee expenses during the vesting period of the equity instruments granted to employees in terms of the Telkom Conditional Share Plan. | |||
| No consideration is payable on the shares issued to employees, but performance criteria will have to be met in order for the granted shares to vest. The ultimate number of shares that will vest may differ based on certain individual and Telkom performance conditions being met. The related compensation expense is recognised over the vesting period of the shares granted, commencing on the grant date. | |||
| The following table illustrates the movement within the Share-based compensation reserve: | |||
| Balance at beginning of year/period | 643 | 643 | 1,076 |
| Net increase in equity | 433 | 295 | 776 |
| Employee cost* | 554 | 411 | 1,123 |
| Vesting and transfer of shares | (121 | (116) | (347) |
| Balance year/period | 1,076 | 938 | 1,852 |
| * The increase in employee costs for September 30, 2009 is due to the modification of the Telkom Conditional Share Plan. | |||
| The principal assumptions used in calculating the expected number of shares that will vest are as follows: | |||
| Employee turnover (%) | 9 | 5 | 9 |
| Meeting specified performance criteria - all remaining vesting (%) | 75 | 100 | 100 |
| At September 30, 2009 the estimated total compensation expense to be recognised over the vesting period was R1,658 million (September 30, 2008: R2,151 million; March 31, 2009: R1,824 million), of which R177 million (September 30, 2008: R411 million; March 31, 2009: R554 million) was recognised in employee expenses for the six months ended September 30, 2009. |