CSL Ltd Annual Report 2019

CSL Limited Annual Report 2019 124 Notes to the Financial Statements (c) Share-based payments – cash settled The notional shares under the Executive Deferred Incentive Plan generate a cash payment to participants in three years’ time, or in limited instances over a prorated period (see Note 5), provided they are still employed by the company and receive a satisfactory performance review over that period. The amount of the cash payment will be determined by reference to the CSL share price immediately before the award maturity date. Recognition and measurement The fair value of the cash-settled notional shares is measured by reference to the CSL share price at reporting date, adjusted for the dividend yield and the number of days left in the vesting period. The ultimate cost of these transactions will be equal to the fair value at settlement date. The cumulative cost recognised until settlement is a liability and the periodic determination of this liability is carried out as follows: • At each reporting date between grant and settlement, the fair value of the award is determined. • During the vesting period, the liability recognised at each reporting date is the fair value of the award at that date multiplied by the expired portion of the vesting period. • All changes in the liability are recognised in employee benefits expense for the period. • The fair value of the liability is determined by reference to the CSL Limited share price at reporting date, adjusted for the dividend yield and the number of days left in the vesting period. • The following table lists the inputs to the valuation models used during the year for EDIP purposes. 2019 2018 Grant date Fair value of grants at reporting date Dividend yield % Fair value of grants at reporting date Dividend yield % October 2016* A$214.07 1.75% A$191.11 1.75% January 2017* A$214.33 1.75% A$193.05 1.75% April 2017* A$214.07 1.75% A$194.14 1.75% July 2017* A$214.07 1.75% A$191.59 1.75% October 2017* A$214.70 1.75% A$193.49 1.75% * The fair value of grants are the weighted average fair values.