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Share-based Payment

Modifications & Cancellations (.26 ‐ .29)

• Changes made to terms after grant date

• E.g. Change in exercise price of option, number of options, length of
vesting period, etc.

• Principle:

• Modifications and cancellations cannot decrease or decelerate expense

that would have been recognised if no change had occurred

• Can increase or accelerate expense

• Cancellations

• Recognise full remaining expense

• Modifications

• If detrimental/unfavourable to employees

• E.g. increase exercise price / extend vesting period

• Ignore and account for as previously
• If beneficial/favourable to employees

• E.g. decrease exercise price / shorten vesting period
• Continue to recognise existing expense

• Recognise additional beneficial expense as if a new SBP scheme.
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