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SHARE-BASED PAYMENT
Recognition of expense
• Non employee services
• When goods or services received
• E.g plant purchased or repaired
• Employee services
• If no conditions attached
• Recognised in full on grant date
• Usually employers grant shares or share options
expecting future services
• i.e. apply ‘vesting conditions’ (App A definitions)
• Conditions or restrictions before employee is entitled to shares or
options
• E.g employee is required to work 2 years before being able to
exercise options – 2 year vesting period
• Recognise expense over the vesting period.
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