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Equity settled share based payments – service – ACCA (SBR) lectures

VIVA

Reader Interactions

Comments

  1. mynameisglow says

    August 23, 2022 at 5:43 pm

    Hi Chris
    Why does the equity increase in the first example.. (from 800000 to 1600000), but in the second example, it’s not the sum of the current estimate and the one from the year prior

    (ie. I dont understand why it doesn’t go from 2,400,000 to 9600000 (24m plus 72m))?

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    • mynameisglow says

      August 23, 2022 at 5:50 pm

      Never mind..
      Just realised my mistake ?.
      Thank you!

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  2. sindi2012 says

    April 14, 2022 at 5:57 am

    Hi Sir,
    I have a question concerning equity settled share based payment
    What happens if for example:
    Let us assume that the vesting period is 3 years. At grant date, company has 50 employees.
    At the grant date, the company has estimated that 10 employees would leave.
    At the end of the first reporting date, the calculation would be as follows : (50-10) x Fair value x No of shares
    Let’s say that during the 2nd year, actually 5 employees left the company and the latter revises its estimates to say that approximately 15 would leave.
    How do we deal with that? Do we use only expected no of employees or do we consider the actual leavers as well?

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  3. jaunmahamood says

    September 1, 2020 at 5:12 pm

    Hi Sir,
    I have a question concerning equity settled share based payment
    What happens if for example:
    Let us assume that the vesting period is 3 years. At grant date, company has 50 employees.
    At the grant date, the company has estimated that 10 employees would leave.
    At the end of the first reporting date, the calculation would be as follows : (50-10) x Fair value x No of shares
    Let’s say that during the 2nd year, actually 5 employees left the company and the latter revises its estimates to say that approximately 15 would leave.
    How do we deal with that? Do we use only expected no of employees or do we consider the actual leavers as well?

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  4. agnieszka1986 says

    February 22, 2020 at 1:29 pm

    Thank you Chris, that was a very good explanation.

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  5. nwoa says

    August 15, 2019 at 7:40 pm

    Thank you so much for the lectures! Quick question on example 2, the first year the number of directors were 6 (10-4). On the second year one leaves so I assumed the number of directors would be 5. The example states 10-1. Do we assume the other directors were replaced and entitled to the same scheme? Thanks!

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    • nwoa says

      August 15, 2019 at 7:59 pm

      Sorry! Stupid question, I just realised my mistake. These are estimates. Thanks

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      • confideans says

        October 6, 2019 at 8:57 am

        Pls Help us Christ, I am also confused regarding this

      • faylim says

        October 28, 2019 at 12:37 pm

        Wait.. I don’t get it…. I used 5, why does it matter if its estimates? Oh boy, I’m in trouble…

      • jiamulin says

        November 8, 2019 at 3:07 am

        The estimate will change at the end of each year in 2014 and 2015.

        In example 2:
        The management made an estimation at the end of the year 2014 that 4 directors would leave before the end of the three years.
        So the calculation is based on 10-4=6 directors.

        At the end of the year 2015, the estimation changed, only 1 director would leave before the end of the three years, the other 3 directors changed their mind. (The reason is the economic downturn, not easy to find another job if they leave.)
        So the calculation is based on 10-1=9 directors.

        I hope it helps.

  6. aarina says

    December 31, 2018 at 6:32 am

    Thus far ur explanation and way of teaching is enlightening and entertaining. lol

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  7. aarina says

    December 31, 2018 at 6:32 am

    Are u going to upload new videos for this tho? any new videos coming before the second week of jan? i wish you watched the videos first before upload or put a disclaimer where it was wrong. because im replying solely on your videos and open tuition for with study text to learn.

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    • P2-D2 says

      January 4, 2019 at 8:59 am

      Hi,

      We’ll upload the new videos once I’ve the time to be able to re-record them. The videos are fine and the odd mention of P2 as the exam should not cause you any big issues.

      Thanks

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  8. beryozka2005 says

    June 27, 2018 at 12:19 am

    Hello,
    Could you please explain why do we value goods @ FV of options in example 3 of the lecture, but then in the following lecture (Chapter 14, lecture 3) we value it at FV og goods?
    They are two identical examples. Many thanks in advance.

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    • P2-D2 says

      July 2, 2018 at 9:40 pm

      Hi,

      We need to edit out the end of this video, so ignore anything after the 12:55 point as I got excited and made a slight mistake.

      If the options are in return for goods then they are valued at the fair value of the goods.

      Thanks

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