Page 20 - PowerPoint Presentation

Share-based Payment

Vesting Conditions & FV

• IFRS 2 FV is not same as IFRS 13 FV (.6A)

• Factors that affect share option value

• General (non vesting)

• Current share price
• Exercise price

• Time value

• Expected volatility of share
• Expected dividends

• Vesting conditions
• Restricting on exercising

• IFRS 2 incorporates of the above factors that market

participants would include in valuation (.17, .21 & 21A)

• Except non marketing vesting conditions (.19)

• Account for these using best estimate of number expected to vest (.20)
• Service conditions – estimate how many employees will work for
the required period

• Non market performance conditions – estimate whether the
performance target will be met.
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