FAIRFAX MEDIA  LIMITED  2013  69 NOTEs TO THE FINANCIAL sTATEMENTs  1. sUMMARY OF sIGNIFICANT ACCOUNTING POLICIEs (CONTINUED) (T) EMPLOYEE BENEFITS (i) WAGeS, SAlARieS, AnnuAl leAVe And lonG  SeRViCe leAVe FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 Current liabilities for wages and salaries, holiday pay, annual  leave and long service leave are recognised in the provision  for employee benefits and measured at the amounts  expected to be paid when the liabilities are settled.  The employee benefit liability expected to be settled within  twelve months from reporting date is recognised in current  liabilities. The non-current provision relates to entitlements,  including long service leave, which are expected to be  payable after twelve months from reporting date and are  measured as the present value of expected future payments  to be made in respect of services, employee departures and  periods of service. Expected future payments are discounted  using market yields at reporting date on national government  bonds with terms to maturity and currency that match, as  closely as possible, the estimated future cash outflows. Employee benefit on-costs are recognised and included in  employee benefit liabilities and costs when the employee  benefits to which they relate are recognised as liabilities. Share-based compensation benefits can be provided to  employees in the form of equity instruments. The cost of share-based payments is recognised over the  period in which the performance and/or service conditions  are fulfilled (the vesting period), ending on the date on  which the relevant employees become entitled to the award  (the vesting date). (ii) SHARe-BASed PAyMenT TRAnSACTionS (U) CONTRIBUTED EQUITY At each reporting date until vesting, the cumulative charge  to the income statement is the product of (i) the grant date  fair value of the award; (ii) the current best estimate of the  number of awards that will vest, taking into account such  factors as the likelihood of employee turnover during the  vesting period and the likelihood of non-market performance  conditions being met; and (iii) the expired portion of the  vesting period. The market value of equity instruments issued to employees  for no cash consideration under the Long Term Incentive  Plan is recognised as an employee benefits expense over the  vesting period (refer to Note 31). Shares purchased, but which have not yet vested to the  employee as at reporting date are offset against contributed  equity of the Group (refer to Note 1(U)). Fairfax Media Limited and certain controlled entities  participate in a number of superannuation plans. An asset or liability in respect of defined benefit  superannuation plans is recognised in the balance sheet,  and is measured as the present value of the defined benefit  (iii) deFined BeneFiT SuPeRAnnuATion PlAnS deBenTuReS Debentures have been included as equity as the rights  attaching to them are in all material respects comparable  to those attaching to the ordinary shares. Such debentures  are unsecured non-voting securities that have interest  entitlements equivalent to the dividend entitlements attaching  to the ordinary voting shares and rank equally with such  shares on any liquidation or winding up. These interest  entitlements are treated as dividends. If the Group reacquires its own equity instruments, e.g.  under the Long Term Incentive Plan, those instruments are  deducted from equity. Ordinary shares are classified as equity.  Incremental costs directly attributable to the issue of new  shares or options are recognised in equity as a reduction  from the proceeds. Incremental costs directly attributable  to the issue of new shares for the acquisition of a business  are not included in the cost of the acquisition as part of the  purchase consideration. The Group recognises a provision and an expense for  bonuses where contractually obliged or where there is a past  practice that has created a constructive obligation. Termination benefits are payable when employment is  terminated before the normal retirement date, or when an  employee accepts voluntary redundancy in exchange for  these benefits. The Group recognises termination benefits  when it is demonstrably committed to either terminating the  employment of current employees according to a detailed  formal plan without possibility of withdrawal or providing  termination benefits as a result of an offer made to encourage  voluntary redundancy.  (V) BonuS PlAnS (iV) TeRMinATion BeneFiTS Contributions made by the Group to defined contribution  superannuation funds are charged to the income statement  in the period the employee’s service is provided. obligation at the reporting date plus unrecognised actuarial  gains (less unrecognised actuarial losses), less the fair value  of the superannuation fund’s assets at that date and any  unrecognised past service cost. The present value of the  defined benefit obligation is based on expected future  payments which arise from membership of the fund to the  reporting date, calculated annually by independent actuaries  using the projected unit credit method. Consideration is given  to expected future wage and salary levels, experience of  employee departures and periods of service. Actuarial gains  and losses are recognised in retained earnings in the periods  in which they arise.