2.2 Summary of Material accounting policies
A. Revenue recognition

Revenue is measured based on the consideration
specified in a contract with a customer net of variable
consideration (e.g. discounts), taxes and amount
collected on behalf of third parties. The Company
recognizes revenue when it transfers control over
a product or service to a customer. The amount of
revenue recognized is at an amount that reflects the
consideration to which the Company expect to be
entitled to in exchange for the product or service.
Revenue is only recognized to the extent that is highly
probable that a significant reversal will not occur.

i) Program fees:

Revenue From Prepaid Card Instruments

The Company acts as Program Manager and
Business Correspondent to the Partner Banks for
the Co-branded Prepaid Card Instruments. The
Co-branded Cards are operated under various
schemes (Such as Kuber, Zinger etc.). Program
fees mainly includes revenue from Interchange
(including residual income) earned from partner
banks and excludes amounts collected on
behalf of partner banks. Interchange revenue is
recognized as per the terms of the arrangement
with partner banks, at the point in time, basis the
information shared by the banks to the Company
post settlement with network partners. The
incentives / cash back, as an when incurred by the
Company towards the co-branded prepaid card
instruments has been considered as a distinct
goods or services and accordingly recorded as
an expense.

Revenue From Credit Card Instruments

The Company acts as a Program Manager and
Business Correspondent to the Partner Banks
for the issue of Credit Card Instruments to our
customers/users. We run the programs with
various customers/users and arrange to process
their transactions through various platforms.
Program Fees includes revenue from interchange
earned from partner banks and excludes amounts
collected on behalf of partner banks. Revenue
from interchange income is recognized when

related transaction occurs, or service is rendered
as per the terms of the arrangement with partner
banks. The Incentives / Cash back, as and when
incurred by the Company towards the credit card
instruments has been considered as a distinct
goods or services and accordingly recorded as
an expense.

Banks and corporates are considered as customers
of the Company. Any amounts receivable from
the customers on account of normal course of
business is classified as trade receivable. Further
advance received from customers against which
cards are yet to be activated is disclosed as
liability under advances from customers.

ii) Propel platform revenue / Gift cards:

Propel platform revenue from monetisation of
platform is recognized on the basis of terms of the
agreement with the respective customers.

The Company recognizes revenue on completion
of the Company performance obligation being
met on redemption of propel points against
catalogue of gift cards / vouchers.

The Company acts as a principal and accordingly
consideration for the supplies is recognized on
gross basis with corresponding cost of supplies
being recorded as an expense. Revenue on sale
of gift cards / vouchers is recognized only to the
extent the Company's performance obligation is
met, at the point in time on transfer of the control
of the respective gift cards / vouchers to the
customers.

iii) Fees income/SaaS income:

The Company earns fees income/SaaS income/
service fees income from various activities
including user fees, platform fees, customization
fees etc. The fee income is recognized when
the control in services have been transferred
by the Company i.e., as and when services
have been provided by the Company and the
Company's performance obligation is met. This
fee is recognized as income in accordance with
the terms of the arrangement with the respective
customers.

iv) Interest income:

Interest income is recognized when it is probable
that the economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding
and at the effective interest rate applicable, which
is the rate that discounts estimated future cash
receipts through the expected life of the financial
asset to that asset's net carrying amount on initial
recognition. Interest income is included under the
head ‘other income' in the statement of profit and
loss.

C. Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and financial liability or
equity instrument of another entity.

i) Initial Recognition and measurement

Financial assets and financial liabilities are initially
recognized when the Company becomes a party
to the contractual provisions of the instrument.
A financial asset or financial liability is initially
measured at fair value plus, for an item not at fair
value through profit and loss (FVTPL), transaction
costs that are directly attributable to its acquisition
or issue.

ii) Classification and subsequent measurement
Financial assets

All financial assets except Trade receivables are
initially measured at fair value plus, for an item
not at fair value through profit and loss (FVTPL),
transaction costs that are directly attributable to
its acquisition or issue.

Subsequent measurement: For the purpose of
subsequent measurement, financial assets are
categorised as under:

- Amortised cost;

- Fair Value through Other Comprehensive
Income (FVOCI) - equity investment; or

- Fair Value through Profit or Loss (FVTPL)

Financial assets are not reclassified subsequent
to their initial recognition, except if and in the
period the Company changes its business model
for managing financial assets.

A financial asset is measured at amortised cost if it
meets both of the following conditions and is not
designated as at FVTPL:

- the asset is held within a business model
whose objective is to hold assets to collect
contractual cash flows; and

- the contractual terms of the financial asset
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal amount outstanding.

On initial recognition of an equity investment
that is not held for trading, the Company may
irrevocably elect to present subsequent changes
in the investment's fair value in OCI (designated
as FVOCI - equity investment). This election is
made on an investment-by-investment basis.

All financial assets not classified as measured at
amortised cost or FVOCI as described above are
measured at FVTPL. This includes all derivative
financial assets. On initial recognition, the
Company may irrevocably designate a financial
asset that otherwise meets the requirements to
be measured at amortised cost or at FVOCI as
at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would
otherwise arise.

Financial assets at FVTPL: These assets are
subsequently measured at fair value. Net gains
and losses, including any interest or dividend
income, are recognized in profit or loss.

Financial assets at amortised cost: These assets
are subsequently measured at amortised cost
using the effective interest method. The amortised
cost is reduced by impairment losses. Interest
income, foreign exchange gains and losses and
impairment are recognized in profit or loss. Any
gain or loss on derecognition is recognized in
profit or loss.

Equity investments at FVOCI: These assets are
subsequently measured at fair value. Dividends
are recognized as income in profit or loss unless
the dividend clearly represents a recovery of part
of the cost of the investment. Other net gains
and losses are recognized in OCI and are not
reclassified to profit or loss.

Financial liabilities:

Financial liabilities are classified as measured
at amortised cost or FVTPL. A financial liability
is classified as at FVTPL if it is classified as
held-for-trading, or it is a derivative or it is
designated as such on initial recognition. Financial
liabilities at FVTPL are measured at fair value
and net gains and losses, including any interest
expense, are recognized in statement of profit or
loss. Other financial liabilities are subsequently
measured at amortised cost using the effective
interest method. Interest expense and foreign
exchange gains and losses are recognized in
statement of profit or loss.

iii) Derecognition
Financial assets

A Financial asset is primarily derecognized when
the right to receive the contractual cash flows in
a transaction in which substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which the Company neither
transfers nor retains substantially all of the risks
and rewards of ownership and does not retain
control of the financial asset.

If the Company enters into transactions whereby
it transfers assets recognized on its balance
sheet, but retains either all or substantially all of
the risks and rewards of the transferred assets,
the transferred assets are not derecognized.

Financial liabilities

The Company derecognizes a financial liability
when its contractual obligations are discharged or
cancelled, or expired.

The Company also derecognizes a financial
liability when its terms are modified and the cash
flows under the modified terms are substantially
different. In this case, a new financial liability
based on the modified terms is recognized at
fair value. The difference between the carrying
amount of the financial liability extinguished and
the new financial liability with modified terms is
recognized in profit or loss.

iv) Offsetting

Financial assets and financial liabilities are offset
and the net amount reported in the balance sheet
if there is a currently and legally enforceable right
to set off the amounts and it intends either to
settle them on a net basis or to realize the asset
and settle the liability simultaneously.

D. Property, plant and equipment

i) Recognition and measurement

Property, Plant and Equipment (‘PPE') are stated
at historical cost less accumulated depreciation
and accumulated impairment loss, if any. Cost
of an item of property, plant and equipment
comprises its purchase price, including import
duties and non-refundable purchase taxes, after
deducting trade discounts and rebates, any
directly attributable cost of bringing the item to
its working condition for its intended use and
estimated costs of dismantling and removing the
item and restoring the site on which it is located.
If significant parts of an item of property, plant
and equipment have different useful lives, then
they are accounted for as separate items (major
components) of property, plant and equipment.

Subsequent costs are included in the asset's
carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that
future economic benefits associated with the item
will flow to the Company and the cost of the item
can be measured reliably. The carrying amount of
any component accounted for as a separate asset
is derecognized when replaced. All other repairs
and maintenance are charged to statement of
profit or loss during the reporting period in which
they are incurred. If an item of property, plant
and equipment is purchased with deferred credit
period from supplier, such asset is recorded at its
cash price equivalent value.

ii) Depreciation

Depreciation is provided using the Straight-line
Method over the useful lives of the assets as
estimated by the Management. Depreciation on
additions and deletions are restricted to the period
of use. Depreciation is charged to statement of
profit and loss.

Depreciation is calculated over the depreciable
amount, which is the cost of an asset, or other
amount substituted for cost, less its residual value.

The Company, based on technical assessment
and management estimate, depreciates property,
plant and equipment over estimated useful
life prescribed in Schedule II to the Act. The
Management believes that these estimated useful
lives are realiztic and reflect fair approximation of
the period over which the assets are likely to be
used. The Company has estimated the following
useful lives to provide depreciation on its property,
plant and equipment:

in the asset are considered to modify the amortization
period or method, as appropriate, and are treated as
changes in accounting estimates. The amortization
expense on intangible assets recognized in the
statement of profit and loss unless such expenditure
forms part of carrying value of another asset.

An asset's carrying amount is written down
immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated
recoverable amount. Gains or losses arising from
disposal of property, plant and equipment which
are carried at cost are recognized in the statement
of profit and loss.

Depreciation method, useful lives and residual
values are reviewed at each reporting date and
adjusted if appropriate.

E. Intangible Assets

Intangible assets acquired separately are measured
on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less
any accumulated amortization and accumulated
impairment losses. Internally developed intangibles
are capitalized to the extent of direct cost related to the
development of the respective intangible assets which
mainly includes manpower cost. Intangible assets are
amortized over the useful economic life assessed
which ranges from 3-5 years and tested for impairment
whenever there is an indication that the intangible
asset may be impaired. The amortization period and
the amortization method for an intangible asset are
reviewed at the end of each reporting period. Changes
in the expected useful life or the expected pattern of
consumption of future economic benefits embodied

F. Investment in Subsidiaries/Associates

Investment in Subsidiaries/Associates are valued at
Cost. Dividend Income from subsidiaries/Associates
is recognized when its right to receive the dividend is
established.

G. Impairment of assets

i) Impairment of financial instruments

The Company recognizes loss allowances
for expected credit losses on financial assets
measured at amortised cost and trade receivables.
At each reporting date, the Company assesses
whether financial assets carried at amortised cost
are credit-impaired. A financial asset is ‘credit-
impaired' when one or more events that have a
detrimental impact on the estimated future cash
flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired
includes the following observable data:

- significant financial difficulty of the borrower
or issuer;

- a breach of contract;

- it is probable that the borrower will enter
bankruptcy or other financial reorganization;
or

- the disappearance of an active market for a
security because of financial difficulties.

The Company measures loss allowances at an amount
equal to lifetime expected credit losses.

Loss allowances for trade receivables are always
measured at an amount equal to lifetime expected
credit losses.

Lifetime expected credit losses are the expected credit
losses that result from all possible default events over
the expected life of a financial instrument.

12-month expected credit losses are the portion of
expected credit losses that result from default events
that are possible within 12 months after the reporting
date (or a shorter period if the expected life of the
instrument is less than 12 months).

In all cases, the maximum period considered when
estimating expected credit losses is the maximum
contractual period over which the Company is exposed
to credit risk.

When determining whether the credit risk of a financial
asset has increased significantly since initial recognition
and when estimating expected credit losses, the
Company considers reasonable and supportable
information that is relevant and available without
undue cost or effort. This includes both quantitative
and qualitative information and analysis, based on the
Company's historical experience and informed credit
assessment and including forward-looking information.

Measurement of expected credit losses

The Company applies expected credit loss (ECL) model
for measurement and recognition of loss allowance on
the following:

i. Trade receivables

ii. Financial assets measured at amortised cost
(other than trade receivables)

iii. Financial assets measured at fair value through
other comprehensive income (FVTOCI).

The Company follows a simplified approach wherein
an amount equal to lifetime ECL is measured and
recognized as loss allowance.

In case of other assets (listed as ii and iii above), the
Company determines if there has been a significant
increase in credit risk of the financial asset since initial
recognition. If the credit risk of such assets has not
increased significantly, an amount equal to 12-month
ECL is measured and recognized as loss allowance.
However, if credit risk has increased significantly,
an amount equal to lifetime ECL is measured and
recognized as loss allowance.

Subsequently, if the credit quality of the financial asset
improves such that there is no longer a significant
increase in credit risk since initial recognition, the

Company reverts to recognizing impairment loss
allowance based on 12-month ECL.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance with
the contract and all the cash flows that the Company
expects to receive (i.e. all cash shortfalls), discounted
at the original effective interest rate.

Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected life
of a financial asset. 12-month ECL are a portion of the
lifetime ECL which result from default events that are
possible within 12 months from the reporting date.

ECL are measured in a manner that they reflect unbiased
and probability weighted amounts determined by a
range of outcomes, taking into account the time value
of money and other reasonable information available
as a result of past events, current conditions and
forecasts of future economic conditions.

As a practical expedient, the Company uses a provision
matrix to measure lifetime ECL on its portfolio of
trade receivables. The provision matrix is prepared
based on historically observed default rates over the
expected life of trade receivables and is adjusted for
forward-looking estimates. At each reporting date, the
historically observed default rates and changes in the
forward-looking estimates are updated.

Presentation of allowance for expected credit losses
in the balance sheet

Loss allowances for financial assets measured at
amortised cost are deducted from the gross carrying
amount of the assets.

Write-off

The gross carrying amount of a financial asset is written
off (either partially or in full) to the extent that there is
no realiztic prospect of recovery. This is generally the
case when the Company determines that the debtor
does not have assets or sources of income that could
generate sufficient cash flows to repay the amounts
subject to the write-off. However, financial assets that
are written off could still be subject to enforcement
activities in order to comply with the Company's
procedures for recovery of amounts due.

ii) Impairment of non-financial assets

The Company's non-financial assets, other than
inventories and deferred tax assets, are reviewed

at each reporting date to determine whether
there is any indication of impairment. If any such
indication exists, then the asset's recoverable
amount is estimated.

For impairment testing, assets that do not
generate independent cash inflows are grouped
together into cash-generating units (CGUs). Each
CGU represents the smallest group of assets
that generates cash inflows that are largely
independent of the cash inflows of other assets or
CGUs.

The recoverable amount of a CGU (or an individual
asset) is the higher of its value in use and its fair
value less costs to sell. Value in use is based on
the estimated future cash flows, discounted to
their present value using a pre-tax discount rate
that reflects current market assessments of the
time value of money and the risks specific to the
CGU (or the asset).

The Company's corporate assets (e.g., central
office building for providing support to various
CGUs) do not generate independent cash inflows.
To determine impairment of a corporate asset,
recoverable amount is determined for the CGUs
to which the corporate asset belongs.

An impairment loss is recognized if the carrying
amount of an asset or CGU exceeds its estimated
recoverable amount. Impairment losses are
recognized in the statement of profit and loss.

In respect of assets for which impairment loss has
been recognized in prior periods, the Company
reviews at each reporting date whether there is
any indication that the loss has decreased or no
longer exists. An impairment loss is reversed if
there has been a change in the estimates used
to determine the recoverable amount. Such a
reversal is made only to the extent that the asset's
carrying amount does not exceed the carrying
amount that would have been determined, net of
depreciation or amortisation, if no impairment loss
has been recognized.

I. Employee benefits

(a) Short-term employee benefits

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the

period in which the employees render the related
service are recognized in respect of employees'
services up to the end of the reporting period and
are measured on an undiscounted basis at the
amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the balance
sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plans

A defined contribution plan is a post¬
employment benefit plan under which
an entity pays fixed contributions into
a separate entity and will have no legal
or constructive obligation to pay further
amounts. The Company makes specified
monthly contributions towards Government
administered provident fund scheme and
other funds. Obligations for contributions to
defined contribution plans are recognized as
an employee benefit expense in statement
of profit and loss in the periods during
which the related services are rendered by
employees.

(ii) Defined benefit plans

A defined benefit plan is a post-employment
benefit plan other than a defined contribution
plan. The liability or asset recognized in the
balance sheet in respect of defined benefit
plans is the present value of the defined
benefit obligation at the end of the reporting
period less the fair value of plan assets.
The defined benefit obligation is calculated
annually by a qualified actuary using the
projected unit credit method.

The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have
terms approximating to the terms of the
related obligation.

The net interest cost is calculated by
applying the discount rate to the net balance
of the defined benefit obligation and the fair
value of plan assets. This cost is included in

employee benefit expense in the statement
of profit and loss.

Remeasurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included
in retained earnings in the statement of
changes in equity and in the balance sheet.

Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognized
immediately in profit or loss as past service
cost.

(iii) Compensated Absences: The Company has
no policy of accumulation of compensated
absences.

I. LEASES

Lease contracts entered by the Company majorly
pertains for buildings taken on lease to conduct its
business in the ordinary course.

Company as a Lessee:

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognizes lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.

The Company determines the lease term as the non¬
cancellable period of a lease, together with both
periods covered by an option to extend the lease if
the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate
the lease if the Company is reasonably certain not
to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option
to extend a lease, or not to exercise an option to
terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for
the Company to exercise the option to extend the
lease, or not to exercise the option to terminate the
lease. The Company revises the lease term if there is a
change in the non-cancellable period of a lease.

The Company used the following practical expedients
when applying Ind AS 116 :

• Applied a single discount rate to a portfolio of
leases with similar characteristics.

• Applied the exemption not to recognize right-of-
use assets and liabilities for leases with less than
12 months of lease term and leases of low value.

• Excluded initial direct costs from measuring the
right-of-use asset at the date of initial application.

• Used hindsight when determining the lease
term if the contract contains options to extend or
terminate the lease.

Right of use asset: The Company recognizes right-of-
use asset representing its right to use the underlying
asset for the lease term at the lease commencement
date. The cost of the right-of-use asset measured at
inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any
lease payments made at or before the commencement
date less any lease incentives received, plus any initial
direct costs incurred and an estimate of costs to be
incurred by the lessee in dismantling and removing the
underlying asset or restoring the underlying asset or
site on which it is located. The right-of-use assets is
subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using
the straight-line method from the commencement date
over the shorter of lease term or useful life of right-of-
use asset. The estimated useful lives of right-of use
assets are determined on the same basis as those of
property, plant and equipment. Right-of-use assets are
tested for impairment whenever there is any indication
that their carrying amounts may not be recoverable.
Impairment loss, if any, is recognized in the statement
of profit and loss.

Lease Liability: The Company measures the lease
liability at present value of the future lease payments
at the commencement date of the lease. The lease
payments are discounted using the interest rate implicit
in the lease, if that rate can be readily determined. If that
rate cannot be readily determined, the Company uses
incremental borrowing rate as at the commencement
of lease. The lease liability is subsequently remeasured
by increasing the carrying amount to reflect interest
on the lease liability, reducing the carrying amount
to reflect the lease payments made and remeasuring
the carrying amount to reflect any reassessment or
lease modifications or to reflect revised in-substance

fixed lease payments. The Company recognizes the
amount of the re-measurement of lease liability due
to modification as an adjustment to the right-of-use
asset and statement of profit and loss depending
upon the nature of modification. Where the carrying
amount of the right-of-use asset is reduced to zero and
there is a further reduction in the measurement of the
lease liability, the Company recognizes any remaining
amount of the re-measurement in statement of profit
and loss.

J. Income-tax

Income-tax comprises current and deferred tax. It is
recognized in profit or loss except to the extent that
it relates to an item recognized directly in equity or in
other comprehensive income.

(i) Current tax

Current tax comprises the expected tax payable
or receivable on the taxable income or loss for
the year and any adjustment to the tax payable
or receivable in respect of previous years. The
amount of current tax reflects the best estimate
of the tax amount expected to be paid or received
after considering the uncertainty, if any, related to
income taxes. It is measured using tax rates (and
tax laws) enacted or substantively enacted by the
reporting date.

Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognized amounts, and it is intended
to realize the asset and settle the liability on a net
basis or simultaneously.

(ii) Deferred tax

Deferred tax is recognized in respect of temporary
differences between the carrying amounts
of assets and liabilities for financial reporting
purposes and the corresponding amounts
used for taxation purposes. Deferred tax is not
recognized for:

- temporary differences arising on the initial
recognition of assets or liabilities in a
transaction that is not a business combination
and that affects neither accounting nor
taxable profit or loss at the time of the
transaction; and

- temporary differences related to investments
in subsidiaries to the extent that the Company
is able to control the timing of the reversal of
the temporary differences and it is probable
that they will not reverse in the foreseeable
future;

Deferred tax assets are recognized to the extent
that it is probable that future taxable profits will
be available against which they can be used. The
existence of unused tax losses is strong evidence
that future taxable profit may not be available.
Therefore, in case of a history of recent losses, the
Company recognizes a deferred tax asset only to
the extent that it has sufficient taxable temporary
differences or there is convincing other evidence
that sufficient taxable profit will be available
against which such deferred tax asset can be
realized. Deferred tax assets - unrecognized or
recognized, are reviewed at each reporting date
and are recognized/ reduced to the extent that it
is probable/ no longer probable respectively that
the related tax benefit will be realized.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset
is realized or the liability is settled, based on the
laws that have been enacted or substantively
enacted by the reporting date.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner
in which the Company expects, at the reporting
date, to recover or settle the carrying amount of
its assets and liabilities.

K. Share-based payments

Employees (including senior executives) of the
Company receive remuneration in the form of share-
based payments, whereby employees render services
as consideration for equity instruments (equity-settled
transactions). The cost of equity-settled transactions is
determined by the fair value at the date when the grant
is made using an appropriate valuation model. That cost
is recognized, together with a corresponding increase
in Employee Stock Option Plan (ESOP) reserves in
equity, over the period in which the performance and/
or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognized for
equity-settled transactions at each reporting date until
the vesting date reflects the extent to which the vesting
period has expired and the Company's best estimate
of the number of equity instruments that will ultimately
vest. The statement of profit and loss expense or credit

for a period represents the movement in cumulative
expense recognized as at the beginning and end of
that period and is recognized in employee benefits
expense.

Performance conditions which are market conditions
are taken into account when determining the grant
date fair value of the awards. Service and non-market
performance conditions are not taken into account
when determining the grant date fair value of awards,
but the likelihood of the conditions being met is
assessed as part of the Company's best estimate of
the number of equity instruments that will ultimately
vest. No expense is recognized for awards that do
not ultimately vest because non-market performance
and/or service conditions have not been met. When
the terms of an equity-settled award are modified, the
minimum expense recognized is the expense had the
terms not been modified, if the original terms of the
award are met. An additional expense is recognized for
any modification that increases the total fair value of
the share-based payment transaction, or is otherwise
beneficial to the employee as measured at the date
of modification. Where an award is cancelled by the
entity or by the counterparty, any remaining element
of the fair value of the award is expensed immediately
through profit or loss. The dilutive effect of outstanding
options is reflected as additional share dilution in the
computation of diluted earnings per share.