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CONSOLIDATED FINANCIAL STATEMENTS AND CONSOLIDATED MANAGEMENT REPORT 2015
4.23. Equity-settled transactions
The Company maintains share option plans related to the compensation system for executive directors and board
members that are settled when they are exercised by delivering Company shares. The employee benefits expense is
determined based on the fair value of the share options to be awarded on the date the option is granted.This expense is
recognized over the stipulated three-year period during which the services are rendered.The fair value of share options
established at the date the award was granted is not modified.
The options’ fair value is measured based on an internal valuation using valuation option models – specifically, the
binomial method – and taking into account the price of the option in the year, the life of the option, the price of the
underlying shares, the expected volatility of the share price, estimated dividend payments and the risk-free interest rate
for the life of the option.The option valuation models and the assumptions used are described in Note 22.
4.24. Transactions in foreign currency
Transactions in foreign currency are initially recognized at the exchange rate prevailing at the date of the transaction.
All exchange gains or losses arising from translation as well as those arising when statement of financial position items
settled are recognized in the separate income statement.
4.25. Earnings per share
The Group calculates basic earnings per share on the basis of the weighted average number of shares outstanding at
year end. The calculation of diluted earnings per share also includes the dilutive effect, if any, of stock options granted
during the year.
4.26. Environmental issues
In view of the business activities carried out by the Group, it does not have any environmental liability, expenses, assets,
provisions or contingencies that might be material with respect to its equity, financial position or results.Therefore, no
specific environmental disclosures have been included in these notes to the financial statements.