Page 100 - F2 Integrated Workbook STUDENT 2019

Chapter 4

1.2 Accounting for equity-settled share-based payments

Equity-settled

SBP’s

Used to pay 3rd Used to pay
parties employees

Direct method Indirect method

Use:
Value at fair value of
item purchased  FV of option at GRANT
DATE
 Based on options
expected to vest

 Spread over vesting
period

Dr P/L or Asset Dr P/L
Cr Equity Cr Equity

92