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Dear Tutor
I am not sure why it mentioned the share price of Luploid for the share based scheme. when we calculate the attributable amount to post combination remuneration package, we only considered the option price. I don’t know why it also mentioned the share price in the question. at YE 20X8, the share price has not increased by 10%, only to $32. do we use it in any calculation?
when I check out the answer, I don’t fully understand the last paragrah. if the share price is a market based vesting condition, did we do any ajustment for not matching market based vesting condition. what is the purpose of doing it?
what is the non-market based vesting conditions? any examples
“an expenses is therefore recorded in the consol P/L of Luploid”, what kind of expenses?
Market based conditions – share price / PE ratio – do not adjust your computation
Non market based conditions – period of service, profit target, personal performance target – do adjust your computationDear sir,
In calculation of fair value of SBP at the acquisition date, why dont we use the fair value of the replacement scheme at the grant date ($18m) instead of using the fair value of the acquiee’s scheme ($15m)? If so, the fair value of the SBP to be added to the cost of investment should be: $18m x 3/5 = $10.8m.
Could you please clarify this issue? Many thanks.
IFRS 3:
Where share-based payment arrangements of the acquiree exist and are replaced, the value of such awards must be apportioned between pre-combination and post-combination service and accounted for accordingly. [IFRS 3.B56-B62B]
Which value? KPMG handbook would suggest use acquiree – see page 278
https://home.kpmg/content/dam/kpmg/be/pdf/2019/01/ifrs-2-handbook-2018.pdf
But I think there may be some inconsistency in practice.
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