Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the
profit and loss over the vesting period. Non-market conditions are taken into account by adjusting the number of
equity instruments expected to vest at each Statement of Financial Posision date so that, ultimately, the cumulative
amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting
conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to
achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control
of either party (such as target based on an index) or factors which are within the control of one of other of the parties
(such as the Company keeping the scheme open or the employee maintaining any contributions required by the
scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options,
measured immediately before and after the modification, is also charged to the profit and loss over the remaining
vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of
goods or services received.