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Chapter 9

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.

Illustrations and further practice

Now try TYU question 2 from Chapter 9.

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