(xxiii) Interest-bearing loans and borrowings All loans and borrowings are initially recognised at the fair value of  the consideration received less directly attributable transaction costs.  After initial recognition, interest-bearing loans and borrowings are  subsequently measured at amortised cost using the effective interest rate  method. Gains and losses are recognised in the profit or loss when the  liabilities are de-recognised. 1 CORPORATE INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (continued) (xxiv) Provisions (c) Summary of significant accounting policies  (continued) Provisions are recognised when the Group has a present obligation (legal or  constructive) as a result of a past event, it is probable that an outflow of  resources embodying economic benefits will be required to settle the  obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed, for  example under an insurance contract, the reimbursement is recognised  as a separate asset but only when the reimbursement is virtually certain.  The expense relating to any provision is presented in profit or loss net of  any reimbursement. If the effect of the time value of money is material, provisions are discounted  using a current pre-tax rate that reflects the risks specific to the liability.  When discounting is used, the increase in the provision due to the passage  of time is recognised as a borrowing cost. Provision is made for wages and salaries, including non-monetary benefits,  and annual leave in respect of employees’ services up to the reporting date.  They are measured at the amounts expected to be paid when the liabilities  are settled. Liabilities for non-accumulating sick leave are recognised  when the leave is taken and are measured at the rates paid or payable. Liabilities arising in respect of wages and salaries, annual leave and any  other employee entitlements expected to be settled within twelve months of  the reporting date are measured at their nominal amounts. All other  employee benefit liabilities are measured at the present value of the  estimated future cash outflow to be made in respect of services provided by  employees up to the reporting date. The value of the employee share  incentive scheme is being charged as an employee benefits expense. Refer  to Note 1(c)(xxvi) for the share-based payment transactions policy. (xxv) Employee leave benefits Wages, salaries, annual leave and sick leave (xxvii) Contributed equity (xxviii) Earnings per share Ordinary shares are classified as equity. Incremental costs directly  attributable to the issue of new shares or options are shown in equity as a  deduction, net of tax, from the proceeds. Incremental costs directly  attributable to the buyback of shares are shown in equity, net of tax, as part  of the buyback cost. Basic earnings per share is calculated as net profit attributable to  members of the parent, adjusted to exclude any costs of servicing equity  (other than dividends) and preference share dividends, divided by the  weighted average number of ordinary shares, adjusted for any bonus  element. When there are potential ordinary shares that are dilutive, diluted earnings  per share is calculated as net profit attributable to members of the parent,  adjusted for: The liability for long service leave is recognised in the provision for  employee benefits and measured as the present value of expected future  payments to be made in respect of services provided by employees up to  the reporting date using the projected unit credit method. Consideration is  given to expected future wage and salary levels, experience of employee  departures, and periods of service. Expected future payments are  discounted using market yields at the reporting date on national  government bonds with terms to maturity and currencies that match, as  closely as possible, the estimated future cash outflows. The Group provides benefits to employees (including senior executives) of  the Group in the form of share-based payments, whereby employees  render services in exchange for shares or rights over shares (equity-settled  transactions). The plans currently in place to provide these benefits are the  Company’s Executive Share Plan and Loan Facility and the 2012 Option Plan  for the Company’s Chief Executive Officer, and ceasing in 2013, the 2008  Option Plan for the Company’s Chief Executive Officer, which provide  benefits to directors and senior executives. The grant of rights under the  Executive Share Plan and Loan Facility are treated as “in substance  options”, even where the equity instrument is not an option. The cost of equity-settled transactions with employees is measured by  reference to the fair value of the equity instruments at the date at which  they are granted. The fair value is determined by an external valuer using  either the Monte Carlo, binomial or Black-Scholes models. In valuing  equity-settled transactions, no account is taken of any performance  conditions, other than conditions linked to the price of the shares of VRL  (market conditions) if applicable. (xxvi) Share-based payment transactions The cost of equity-settled transactions is recognised, together with a  corresponding increase in equity, over the period in which the performance  and/or service conditions are fulfilled, ending on the date on which the  relevant employees become fully entitled to the award (the vesting period). The cumulative expense recognised for equity-settled transactions at each  reporting date until vesting date reflects the extent to which the vesting  The segment revenue that is disclosed to the chief operating decision  maker in Note 29 is in accordance with IFRS. Inter-segment revenue  applies the same revenue recognition principles as per Note (1)(c)(iii). A geographic region is identified when products or services are provided  within a particular economic environment subject to risks and returns that  are different from those segments operating in other economic  environments. Revenue from geographic locations is attributed to  geographic location based on the location of the customers. Discrete financial information about each of these segments is reported to  the executive management team on a monthly basis. These operating  segments are then aggregated based on similar economic characteristics  to form the following reportable segments: – Theme Parks  Theme park and water park operations – Cinema Exhibition  Cinema exhibition operations – Film Distribution  Film and DVD distribution operations – Other   Other represents financial information which is  not allocated to the reportable segments. The Group has identified its operating segments based on the internal  reports that are reviewed and used by the executive management team (the  chief operating decision maker) in assessing performance and in  determining the allocation of resources. (xxix) Segment reporting divided by the weighted average number of ordinary shares and dilutive  potential ordinary shares, adjusted for any bonus element. – costs of servicing equity (other than dividends) and preference share  dividends; – the after tax effect of dividends and interest associated with dilutive  potential ordinary shares that have been recognised as expenses; and – other non-discretionary changes in revenues or expenses during the  period that would result from the dilution of potential ordinary shares; period has expired and the Group’s best estimate of the number of equity  instruments that will ultimately vest. No adjustment is made for the  likelihood of market performance conditions being met as the effect of  these conditions is included in the determination of fair value at grant date.  The profit or loss charge or credit for a period represents the movement in  cumulative expense recognised as at the beginning and end of that period.  No expense is recognised for awards that do not ultimately vest, except for  awards where vesting is only conditional upon a market condition. If the terms of an equity-settled award are modified, as a minimum an  expense is recognised as if the terms had not been modified. In addition, an  expense is recognised for any modification that increases the total fair  value of the share-based payment arrangement, or is otherwise beneficial  to the employee, as measured at the date of modification. If an equity-settled award is cancelled, it is treated as if it had vested on the  date of cancellation, and any expense not yet recognised for the award is  recognised immediately. However, if a new award is substituted for the  cancelled award and designated as a replacement award on the date that it  is granted, the cancelled and new award are treated as if they were a  modification of the original award, as described in the previous paragraph. The dilutive effect, if any, of outstanding options is reflected as additional  share dilution in the computation of earnings per share (refer Note 3). Shares in the Group relating to the various employee share plans and which  are subject to non-recourse loans are deducted from equity. Refer Note 25  for share-based payment disclosures relating to “in substance options”. Long service leave 43 ANNUAL REPORT 2014 CLOSE FILE X