Lease payments are apportioned between the finance charges and reduction of the lease liability so as to  achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged  directly to the statement of comprehensive income. Capitalised leased assets are depreciated over the estimated useful life of the asset or where appropriate, over  the estimated life of the mine. The cost of improvements to or on leasehold property is capitalised, disclosed as leasehold improvements, and  amortised over the unexpired period of the lease or the estimated useful lives of the improvements, whichever  is the shorter. Issued and paid up capital is recognised at the fair value of the consideration received by the Consolidated Entity.  Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction in  the proceeds received. Revenue is measured at the fair value of the consideration received or receivable to the extent it is probable that  the economic benefits will flow to the Consolidated Entity and the revenue can be reliably measured. The following  specific recognition criteria must also be met before revenue is recognised: Revenue from tin production is recognised when the significant risks and rewards of ownership in the product  has passed to the buyer pursuant to a sales contract. For tin concentrate sales, the sales price is determined on  a provisional basis at the date of delivery. Adjustments to the sale price occur based on movements in the metal  price up to the date of final pricing. Final pricing is determined within 45 days of delivery. Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the  amortised cost of a financial asset and allocating the interest income over the relevant period using the effective  interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of  the financial asset to the net carrying amount of the financial asset. Revenue from nickel royalties is recognised on an accruals basis in accordance with the substance of the  relevant agreement. The Consolidated Entity provides benefits to employees (including Directors) in the form of share-based payment  transactions, whereby employees render services in exchange for shares or rights over shares (equity-settled  transactions). The Consolidated Entity has one plan in place that provides these benefits. It is the Employee Share Option Plan  (“ESOP”) which provides benefits to all employees including Directors. The scheme has no direct performance  requirements but has specified time restrictions on the exercise of options. The share options will vest after  one year or as determined by the Board of Directors and employees and Directors are able to exercise the share  options for up to three years after vesting before the options lapse. Where a participant ceases employment prior  to the vesting of their share options, the share options are forfeited. Where a participant ceases employment  after the vesting of their share options, the share options automatically lapse after six months of ceasing  employment. The Company does not have a policy to prohibit executives from entering into arrangements to  protect the value of unvested LTI awards. The cost of these equity-settled transactions with employees is measured by reference to the fair value at the  date at which they are granted. The fair value is determined by using a Black & Scholes model. Further details of  which are given in note 33. 68  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 (AC) SHARE-BASED PAYMENT TRANSACTIONS Nickel royalty revenue Interest income Tin sales (AB) REVENUE (AA) ISSUED CAPITAL