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Sir in IFRS 2 its written that when a share option scheme is modified, the entity must recognise, as a minimum, the services received measured at the fair value at the grant date if the conditions of the original agreement are at least met.
But sir in the case where shares do not vest due to MODIFIED conditions not being met but still we do the recognition for the original agreement what wud we do subsequently? I mean obv we wont just keep the amount credited to equity as it is and the shares/options wont vest so as to debit equity that way. So what wud we do then?
Hi,
If we are at the exercise date then the accounting for the scheme will have been done, if the conditions are not met then the options do not vest and they are then reversed out. If would be a strange situation if this were to happen as if the scheme is modified it will have been done with the aim of the condition being met.
Thanks
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