Notes to the financial statements (cont’d) For the year ended 30 June 2012 Goodwill has been recognised as a result of the acquisition as  follows: The Group’s existing interest in the acquiree was as  a component of the acquisition of Australian Wealth  Management Ltd at 30 April 2009 at $12,001,000. The  remeasurement of the existing holding to fair value resulted  in a gain of $9,587,000, which has been recognised in profit or  loss (refer note 7). The goodwill is attributable mainly to the skilled workforce and  the synergies expected to be achieved from integrating DKN  into the Group. The Group incurred acquisition costs of $3,119,000 relating to  external legal fees and due diligence costs. These amounts  have been included in other costs disclosed in note 8. The Group operates a number of employee share and option  schemes under the IOOF Executive Share Option Plan, the  IOOF Executive Performance Share Plan and the Non-Executive  Director Deferred Share Purchase Plan and the IOOF Deferred  Share Plan for the Managing Director. The Group has an ownership-based compensation scheme  for executives and senior employees of the Group. The  establishment of the employee share option plans were  approved by the Board of Directors. Selected employees may be granted options which entitle  them to purchase ordinary fully paid shares in IOOF at a price  fixed at the time the options are granted. Voting and dividend  rights will be attached to the unissued ordinary shares when  the options have been exercised. Options may be exercised at  any time from the date of vesting to the date of their expiry. The Remuneration and Nominations Committee regards the  grant of options to employees as an appropriate long-term  incentive and retention component of total remuneration for  executives and senior employees. It is expected that future  annual grants of options will be made, the vesting of which will  be subject to attainment of appropriate performance hurdles  and on the basis of continuing employment with the Group.  Options granted under the plan carry no dividend or voting  rights. All plans are equity-settled. The IOOF Executive Performance Share Plan is the vehicle used  to deliver equity based incentives to executives and senior  employees of the Group. Each employee receives ordinary shares of the Company on  vesting of the performance rights. No amounts are paid or  payable by the recipient on receipt of the performance rights  or on vesting. The performance rights carry neither rights to  dividends nor voting rights prior to vesting. The Remuneration and Nominations Committee regards the  grant of performance rights to employees as an appropriate  long-term incentive and retention component of total  remuneration for executives and senior employees. It is  expected that future annual grants of performance rights will  be made, subject to the Board’s determination of the overall  performance of the Company and market conditions. The  vesting of any performance rights awarded will be subject to  attainment of appropriate performance hurdles and on the  basis of continuing employment with the Group.  Performance rights granted under the plan carry no dividend  or voting rights. All plans are equity-settled. Each Non-Executive Director is eligible to participate in  the Non-Executive Director Share Purchase Plan. The Non- Executive Director Share Purchase Plan is a salary sacrifice plan  and is not captured as a share based payment expense. A Short Term Incentive (STI) mandatory deferral program  exists with equity deferral relating to a third of the Managing  Directors’ STI for each year. IOOF Executive Share Option Plan 31 Share-based payments Acquisition-related costs Goodwill IOOF Executive Performance Share Plan Non-Executive Director Share Purchase Plan Deferred Share Plan page 104 $’000 Total consideration transferred 86,670  Fair value of existing holding in the acquiree 21,334  Fair value of identifiable assets (37,348) Cash balances acquired 9,683  Goodwill acquired 80,339 