Page 25 - PowerPoint Presentation

Share-based Payment

Choice of Settlement SBP (.34 ‐ .43)

• Can be settled in cash or equity

• Not known at grant date

• If counterparty decides on settlement method

• Classified as Compound financial instrument

• Measure liability first as Cash settled

• Difference is equity as Equity settled

• Level 1

• If entity decides on settlement method

• No obligation - thus all equity settled

• Unless no commercial substance to transaction (.41)

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