WindarPhotonics AnnualReport 2018 All - Flipbook - Page 54
Notes to the Financial Statements
continued
4. Accounting policies (continued)
Share based payments
The Group operates an equity-settled share-based compensation plan under which the entity receives services
from employees as consideration for equity instruments of the Group. The fair value of the employee services
received in exchange for the grant of the equity instruments is recognised as an expense. The total amount to
be expensed is determined by reference to the fair value of the instruments granted. At the end of each
reporting period, the Group revises its estimates of the number of instruments that are expected to vest based
on the non-market vesting conditions and service conditions. It recognises the impact of the revision to original
estimates, if any, in the income statement, with a corresponding adjustment to equity. No new warrants or
options have been issued in 2018.
Employee benefits
Employees in the Group typically have variating holiday benefits. Based on the prior years employment in the
Group employees are entitled to paid holidays in the following year. At the end of each reporting period the
Group accrue these holiday liabilities.
Restricted Cash Balances
Restricted cash balances are not recognised as cash and cash equivalent for cash flow purposes.
Leases
Where substantially all of the risks and rewards incidental to ownership are not transferred to the Group
(an “operating lease”), the total rentals payable under the lease are charged to the Statement of Profit or Loss
and Other Comprehensive Income on a straight-line basis over the lease term.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as
a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line
basis, except where another systematic basis is more representative of the time pattern in which economic
benefits from the leased asset are consumed.
5. Basis of consolidation
The consolidated financial statements incorporate the results of Windar Photonics plc and all of its subsidiary
undertakings as at 31 December 2018 using the acquisition or merger method of accounting as required. Where
the acquisition method is used, the results of subsidiary undertakings are included from the date of acquisition.
Where the company has control over an investee, it is classified as a subsidiary. The company controls an
investee if all three of the following elements are present: power over the investee, exposure to variable returns
from the investee, and the ability of the investor to use its power to affect those variable returns. Control is
reassessed whenever facts and circumstances indicate that there may be a change in any of these elements
of control.
De-facto control exists in situations where the company has the practical ability to direct the relevant activities
of the investee without holding the majority of the voting rights. In determining whether de-facto control exists
the company considers all relevant facts and circumstances, including:
• The size of the company’s voting rights relative to both the size and dispersion of other
parties who hold voting rights
• Substantive potential voting rights held by the company and by other parties
• Other contractual arrangements
• Historic patterns in voting attendance.
The consolidated financial statements present the results of the company and its subsidiaries (“the Group”) as
if they formed a single entity. Intercompany transactions and balances between group companies are therefore
eliminated in full.
Under the merger method, the income, expense, assets and liabilities of Windar Photonics A/S have been included
in the consolidated financial statements of Windar Photonics plc as if it had always been a member of the Group,
taking into account the original acquisition date of the wider Group.
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Windar Photonics - Annual Report and Accounts 2018