Valuation of Share-Based Payment under FRS 102 Minimise risk and uncertainty, and maximise transparency, in your financial and tax reporting The share-based compensation standard is complex, and choices made can have a significant impact on a company’s financials. There are many assumptions and tough decisions that management must make. Valuation expertise - and to a greater extent, independence - are essential. American Appraisal is recognised as a preferred solution provider for valuing sharebased compensation, whether for financial or tax reporting. Each year, we help private and public companies manage their compensation expenses by providing sound valuation services. When do you need a valuation? Valuation services may be required when firms have issued the following types of securities:     Employee stock options Stock appreciation rights Restricted stock units Performance-based restricted stock units with embedded market conditions  Other derivative securities Our services American Appraisal provides valuation services on a global basis for virtually every public and private market sector. Our staff is skilled in the valuation of financial instruments and can help manage the aspects of the underlying models. Broadly speaking, we provide the following compensation-related valuation services:  Assistance in complying with worldwide accounting standards including FRS 102 (IFRS 2) and ASC 718  Valuation of underlying securities, including stock, units and assets, and/or the value of derivative instruments referencing the securities  Benchmark studies, including volatility and risk-free rate, to assist with your internal valuation procedures  Development of supportable assumptions  Determination and application appropriate valuation models of Valuation techniques Valuations of share-based compensation and equity awards for FRS 102 purposes often rely on numerous assumptions and variables, and may require complex modelling using sophisticated software to determine their fair value. Applying the right model is essential for capturing the conditions and features of the options or restricted units. American Appraisal has experience using a wide range of techniques, including:  Black-Scholes  Binomial lattice  Monte Carlo simulations We do not work alone. We work with you to fully understand the conditions and features of your company and securities. Continuous communication with you, your auditor and your advisors is the key to working efficiently. We are familiar with audit standards; and many of our consultants have substantive global audit firm experience. This knowledge simplifies the subsequent auditor review process. Financial reporting has been subject to interpretation and re-interpretation, with the SEC, FASB, IASB and PCAOB leading the charge for change. “Reduce complexity, increase overall comprehension and compel transparency” is the maxim; convergence of accounting and valuation is the mandate. American Appraisal’s approach to valuation helps companies comply with transparency and reporting requirements. We simplify financial reporting by appropriately recognizing the accounting requirements and business imperatives of our clients. Valuation Transaction Consulting Real Estate Advisory Fixed Asset Management The information contained herein is of a general nature, non-comprehensive and not intended to address the circumstances of any particular individual or entity. Our Credentials We are independent American Appraisal focuses exclusively on valuation and related solutions. Our objectivity is highly valued by our Clients and their audit committees. We approach every engagement with one goal: minimising risk and uncertainty.  Valuation is our only business.  We are independent of other attest, rating agency, investment banking or other conflicts.  Our independence eliminates bias and enhances the sustainability of conclusions, thereby avoiding the potential for subsequent reclassification of the expense and/or restatement of your financial statements. We are glocal  American Appraisal, is a global firm that does business locally - the world’s only truly glocal valuation firm™, comprising 900 employees operating from major cities throughout Asia-Pacific, Europe, the Middle East, and North and South America.  Approximately two-thirds of the firm’s revenue originates and is earned outside of the United States. We are experts Breadth and depth of expertise eliminates the need to rely on subcontractors. Our Consultants have the experience necessary to value virtually any business interest, tangible or intangible asset.  Focused on and committed to valuation since 1896  Professional leadership roles with the Appraisal Issues Task Force and The Appraisal Foundation  Unrivalled interaction with key valuationstandard-setting agencies including ASA, FASB, IASB, IVSC, and PCAOB  Rounded exposure from working with Big 4 audit/valuation teams  Credentials include CPA, CFA, ASA,ABV and MRICS We are focused on Client needs American Appraisal is employee owned. We are not merely involved in valuation; we are unequivocally committed to meeting Client needs and surpassing expectations. On every engagement, direct Client access to the firm’s senior management is always the norm, never an exception. About American Appraisal American Appraisal is a valuation and advisory firm which was established in 1896 in North America and has strong presence in North America, Europe, the Middle East, Asia-Pacific and South America. We have approximately 900 employees worldwide, located in more than 50 offices across 24 countries. Our Key Services        Business and intangible asset valuation for strategic or tax purposes Purchase price allocation per IFRS and US GAAP Impairment analysis for financial reporting purposes Valuation of complex financial instruments, including embedded derivatives, employee stock option plans, foreign currency swaps, etc., for regulatory and strategic purposes Portfolio valuation and advisory services for Private Equity / Venture Capital Funds Dispute services Financial due diligence Valuation Contact us Srividya C.Gopalakrishnan, Managing Director Karthik Balisagar, Vice President [email protected] [email protected] American Appraisal Singapore Pte. Ltd. www.american-appraisal.sg Call us: +65 6679 7705 Transaction Consulting Real Estate Advisory Fixed Asset Management The information contained herein is of a general nature, non-comprehensive and not intended to address the circumstances of any particular individual or entity.