Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS | NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
FINANCIAL RISK MANAGEMENT
Parent company business activities are exposed to financial
risks such as foreign exchange risks, interest rate risks,
liquidity risks and credit risks. These financial risks are
managed in accordance with the KONE Treasury Policy.
Parent company financials risks are not significantly different
from the Group's financials risks, see notes 2.4 and 5.3 to the
Group level financial statements.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash-in-hand and bank
account balances. Used bank overdrafts are included in other
current liabilities.
SHARE-BASED PAYMENTS
KONE has separate share-based incentive plans covering the
senior management of KONE, other key personnel and
additional targeted to senior management and other key
personnel, excluding President and CEO of KONE. Pursuant
to the share ownership plans, the reward to the management
is either settled with KONE class B shares, or as a
combination of KONE class B shares and cash when the
criteria set in the terms and conditions of the plan are met.
The shares to be transferred as part of the plans are obtained
in public trading. The acquisition of shares is recognized as an
increase of own shares, reducing equity, and transfer of
shares as decrease in own shares and retained earnings
within equity.
In 2021, KONE changed its' accounting policy for
recognition of expense for the share settled part of share-
based payments rewards. Plans for which settlement of
reward is expected to take place in future years, recognition of
expense, if any, have been discontinued. For plans for which
reward has been settled already in prior years in the fair value
of KONE class B shares, as determined at the grant date, the
total expense has been distributed across the vesting period.
The fair value of the share-based payments settled with
cash has been determined so that it covers taxes and social
security costs that are incurred. The cost arising from cash
settled part of share-based payment rewards is recognized as
an expense over the earnings period. The liability recognized
is measured based on the fair value of the shares expected to
be distributed. At each statement of financial position date, the
company revises its estimates of the number of shares that
are expected to be distributed. It recognizes the impact of the
revision of original estimates in the statement of income.
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KONE ANNUAL REVIEW 2021View entire presentation