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the tSr performance is calculated for the following performance periods: 

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the fair value of the tSr rights have been valued under a Monte Carlo simulation approach predicting Kathmandu holdings limited’s tSr relative to the comparable group of companies at the respective vesting dates for each tranche. the fair value of tSr rights, along with the assumptions used to simulate the future share prices using a random-walk process are shown below: 

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the estimated fair value for each tranche of options issued is amortised over the vesting period from the grant date. the Company has recognised a compensatory expense in the income statement of $54,101 (2011: $41,948) which represents this amortisation. 

the proportion of rights subject to the epS growth hurdle is dependent on the compound average annual growth in Kathmandu holdings limited’s epS relative to the year ending 31 July 2010. the applicable performance periods are: 

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the percentage of the epS growth related rights scales according to the compound average annual epS growth achieved as follows: 

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the fair value of the rights have been assessed as the Kathmandu holdings limited share price as at the grant date less the present value of the dividends forecast to be paid prior to each vesting date. the estimated fair value for each tranche of options issued is amortised over the vesting period from the grant date. the Company has recognised a compensatory expense in the income statement of $78,923 (2011: $61,194) which represents this amortisation. 

