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StarHub Ltd Annual Report 2015

2.6 Inventories

Inventories comprise goods held for resale and reserved telephone numbers. Inventories are valued at the lower of cost and net
realisable value. The cost of goods held for resale is determined on the weighted average basis. Reserved telephone numbers
are stated at cost and accounted for using the specific identification basis. Overview

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make
the sale. Allowance for obsolescence is made for all deteriorated, damaged, obsolete and slow-moving inventories.

2.7 Trade and other receivables

Trade and other receivables (including balances with related parties) are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less allowance for doubtful receivables. Allowance for doubtful
receivables is made based on historical write-off patterns and ageing of accounts receivables. Bad debts are written off
when incurred.

2.8 Cash and cash equivalents Strategy

For the purpose of presentation in the consolidated cash flow statement, cash and cash equivalents comprise cash balances
and deposits with financial institutions and bank overdrafts which are repayable on demand and which form an integral part of
the Group’s cash management.

2.9 Trade and other payables

Trade and other payables (including balances with related parties) are initially recognised at fair value and subsequently carried
at amortised cost using the effective interest method.

2.10 Borrowings Performance

Borrowings are initially recognised at fair value of the proceeds received less directly attributable transaction costs. After initial
recognition, borrowings are subsequently measured at amortised cost using the effective interest method. Any difference
between the proceeds (net of transactions costs) and the settlement or redemption of borrowings is recognised in income
statement over the period of the borrowings.

2.11 Employee benefits Governance & Sustainability

Share-based payment

Share Option Plans
The Share Option Plans allow the Group employees and directors to acquire shares of the Company. The fair value of options

granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant
date and spread over the period during which the employees and directors become unconditionally entitled to the options.
At each reporting date, the Company revises its estimates of the number of options that are expected to become exercisable.
It recognises the impact of the revision of original estimates in employee expense and in a corresponding adjustment to equity
over the remaining vesting period. The proceeds received net of any directly attributable transactions costs are credited to
share capital when the options are exercised.

Performance Share Plans and Restricted Stock Plans Financials
The Performance Share Plans and the Restricted Stock Plans are accounted as equity-settled share-based payments. Equity-

settled share-based payments are measured at fair value at the date of grant. The share-based expense is amortised and
recognised in the income statement on a straight line basis over the vesting period. At each reporting date, the Company
revises its estimates of the number of shares that the participating employees and directors are expected to receive based
on non-market vesting conditions. The difference is charged or credited to the income statement, with a corresponding
adjustment to equity.