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mike why we not make the entry below in cash settled share based payment
dr expense
CR equity
but we replace equity with liability in cash settled share based payment
rights are also equity instrument why we not credit equity
and mike at vasting date we pay cash to employee based on the fair value of rights at vasting date this means we pay employee and they gave back rights to the company(reedeemable) then how they exersice them in future when they lost rightsWhy would you credit equity when you’re going to have to credit cash?
Shares are only involved to let us calculate how much cash we shall have to pay
“and they gave back rights to the company(reedeemable) then how they exersice them in future when they lost rights” How can they exercise the rights when they have given the rights back to us when we paid them cash?
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