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Notes to the Consolidated Financial Statements
30 June 2013
88 BRADKEN LIMITED ANNUAL REPORT 2013
Notes to the consolidated financial statements
30 June 2013
(continued)
35
Share based payments (continued)
Fair value of Rights granted
The following factors and assumptions have been used in determining the fair value of Rights for the issues granted:
Expiry Date
Fair value
per Right
Exercise
price
Price of
shares on
grant date
Estimated
volatility
Risk free
interest rate
Dividend
yield
Ten years from Test Date
2.35
-
4.15
90% 5.35% 0.00%
Ten years from Test Date
2.80
-
6.00
90% 5.73% 0.00%
Ten years from Test Date
3.44
-
6.00
90% 5.73% 0.00%
Ten years from Test Date
4.44
-
14.68
90% 6.18% 0.00%
Ten years from Test Date
6.87
-
14.68
90% 6.18% 0.00%
Ten years from Test Date
8.45
-
14.68
90% 6.18% 0.00%
Ten years from Test Date
2.84
-
6.30
139% 5.19% 0.00%
Ten years from Test Date
4.11
-
6.30
139% 5.19% 0.00%
Ten years from Test Date
4.82
-
6.30
139% 5.19% 0.00%
Final test date
2.50
-
6.05
129% 5.52% 0.00%
Final test date
3.71
-
6.05
129% 5.52% 0.00%
Final test date
4.41
-
6.05
129% 5.52% 0.00%
5/11/2010 Final test date
5.13
-
8.60
125% 5.25% 0.00%
5/11/2010 Final test date
6.12
-
8.60
125% 5.25% 0.00%
7/10/2011 Final test date
4.76
-
6.80
121% 4.24% 0.00%
7/10/2011 Final test date
4.01
-
6.80
121% 4.24% 0.00%
23/10/2012 Final test date
2.84
-
4.96
119% 3.08% 0.00%
23/10/2012 Final test date
3.39
-
4.96
119% 3.08% 0.00%
(c) Expenses arising from share based payment transactions
2013
2012
$'000
$'000
Rights issued under Performance Rights Plan
3,597
2,064
3,597
2,064
29/10/2009
The assessed fair value at grant date of Rights granted during the year ended 30 June 2013 was between $2.84 and $3.39 per
right (2012: between $4.01 and $4.76). The fair value at grant date is determined using a Black Scholes option pricing model that
takes into account the exercise price, the term of the Right, the vesting and performance criteria, the impact of dilution, the non
tradeable nature of the Right, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the Right.
Grant Date
Total expenses arising from share based payment transactions recognised during the period as part of employee benefit expense
were as follows:
17/10/2008
17/10/2008
17/10/2008
29/10/2009
18/11/2005
The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any
expected changes to future volatility due to publicly available information.
30/10/2006
30/10/2006
31/10/2007
31/10/2007
31/10/2007
29/10/2009
Page 88
Bradken Limited