Page 24 - PowerPoint Presentation

Share-based Payment

Cash Settled SBP (.30 ‐ .33)

• Examples:

• Share appreciation rights

• Phantom shares

• Payments based on value of company

• e.g. Agree to pay 3 times the amount by which the share price
exceeds R75 in 3 years time

• Accounting entry:

• Dr P/L;

• Cr Liability

• Liability adjusted each reporting date to best estimate

of amount expected to be paid

• Take into account

• Terms and conditions of agreement

• Extent to which employees have rendered services

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