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| 35. |
SHARE-BASED PAYMENTS (IFRS 2) |
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The following information has
been provided to disclose the effect of share-based payments
on the group, in terms of the provisions of IFRS 2 to
all unvested entitlements granted to participants after
7 November 2002. |
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| 35.1 |
Effect on the current year distributable
earnings |
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|
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|
2006 |
2005 |
| |
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|
US$m |
US$m |
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|
|
Income statement |
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|
|
|
|
Share entitlement expense |
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|
0,7 |
0,4 |
| 35.2 |
Equity-settled share entitlement
plans |
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The group has three equity-settled share
entitlement plans. |
|
• |
The Brait S.A.Share Incentive
Scheme; |
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|
• |
The Brait Executive Share Purchase
Scheme;and |
|
• |
The Brait South Africa Share
Incentive Scheme 2005. |
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The terms of these schemes are described
in the ‘Remuneration report’ on page
42. In summary, the schemes provide for: |
|
• |
An equity issue price equal
to an average quoted market price of Brait shares on the
date of grant; |
|
• |
A vesting period,typically
staggered over three to six years; |
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• |
Expiry of options/entitlements
which remain unexercised after a period of five to eight
years (depending on the scheme) from the date of grant;and |
|
• |
Forfeiture of options/entitlements
if the participant leaves the group before vesting. |
|
The assumptions applied in determining the
income statement effect for each of the group’s
share-based payments schemes under IFRS 2 are set out
below: |
|
|
|
|
2006 |
2005 |
| |
|
Share
entitle-
ments
price |
Weighted
average
issue
ZAR |
Share
entitle-
ments |
|
|
Weighted
average
issue
price
ZAR |
|
|
|
|
|
|
|
The Brait S.A.Share Incentive Scheme |
|
|
|
|
|
Share entitlements outstanding at beginning
of year |
2
975 262 |
7,23 |
2
568 624 |
7,33 |
|
Granted and exercised during the year |
150
000 |
18,04 |
1 374 480 |
7,20 |
|
Delivered during the year |
(808 018) |
7,25 |
(61 151) |
8,17 |
| |
Forfeited
during the year (by resignation, retrenchment or repurchase) |
(578
740) |
7,20 |
(906
691) |
7,39 |
|
Share entitlements outstanding at end of
year |
1
738 504 |
8,16 |
2 975 262 |
7,23 |
| |
Share
entitlements exercisable at end of year |
379
841 |
7,21 |
829
335 |
7,21 |
|
The weighted average issue share
price for share entitlements granted during the period
was ZAR18,04. The unvested entitlements outstanding at
31 March 2006 had a weighted average issue price of ZAR8,16
and a weighted average remaining maximum contractual life
of approximately 6,9 years. |
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