Page 142 - Finac1 Test 2 slides

SHARE-BASED PAYMENT

Equity settled

• If FV of equity instruments can’t be measured

reliably (.24)

• Use intrinsic value (excluded from ITC exam)

• Current share price less exercise price

• Remeasure each reporting date

• Changes to P/L

• Adjust for number expected to vest

• Reload features (.22; app A definition)

• If employee exercises options using entity’s shares

• Automatically granted more share options

• Accounted for as a new grant

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