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IFRS 2 Share Based Payment - Coggle Diagram
IFRS 2 Share Based Payment
4. Choice of Settlement
If counterparty has the choice
Treat as compound instrument
Equity
Liability
1. Introduction
Types
Cash settled
Choice of settlement
Equity settled
Definition
Transaction whereby entity acquire goods or services in exchange for equity instruments of the entity or by incurring liabilities
2. Equity Settled
Vesting condition & period
Service condition
Required to complete service for a specified period of time
Performance condition
Market
Share price
Non-market
Operating output
Profit performance
Earnings per share
Fair value at grant date
Recognition
Dr Expense
Cr Equity
Goods or services for shares or share options
Measurement
FV at grant date x No of employees x No of share options x n/m
3. Cash Settled
Vesting condition & period
Performance condition
Non-market
Operating output
Profit performance
Earnings per share
Market
Share price
Service condition
Required to complete service for a specified period of time
Recognition
Dr Expense
Cr Liability
Fair value at year end
Measurement
FV at year end x No of employees x No of SAR * n/m
Cash paid = Intrinsic value x No of employee stay x No of SAR paid
Goods or services for cash based on value of shares / share options