Page 140 - SBR Integrated Workbook STUDENT S18-J19
P. 140

Chapter 10




               2.4   Vesting conditions

               There are two types of vesting conditions:




                                                     VESTING

                                                  CONDITIONS









                             Market-based                                Non-market based

                          Related to an entity’s                           Unrelated to an
                               share price                                entity’s share price









                              Ignore these
                                                                           Consider when
                            They are already                               calculating the
                            factored in to the                                number of
                             fair value of the                               instruments
                          equity instrument at                            expected to vest.
                             the grant date.































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