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For cash settled, we take both revised expected leavers and actual leavers and deduct it from total employees. For equity settled, we take only expected leavers and not the actual leavers for deducting it from total employees for the calculation? Is this right? If not, can you tell me when should we take actual or estimated leavers. I am a bit confused about it
Hi,
It is confusing but the key is that at the reporting date you need to calculate the number of employees that you expect to be in employment at the end of the vesting period.
This estimate will use the number of employees that will have left as they won’t be receiving the share based payment plus an expectation of the future leavers as they won’t receive the share based payment either.
The calculation is the same for both cash and equity settled share based payment schemes.
Thanks
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