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Share-based payment

2.7 Cancellations

An entity may cancel or settle a share option scheme before the vesting date. If this
occurs:

 The entity immediately recognises the total remaining share-based payment
expense.

 Payments made to employees up to the fair value of the equity instruments at
cancellation are accounted for as a deduction from equity.

 Payments made to employees in excess of the fair value of the equity
instruments at cancellation are accounted for as an expense in profit or loss.

Illustrations and further practice

Now try TYU question 6 from Chapter 9.

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