Dear Sir,
In non market based condition, how do we account for whether we will expense the charge or not?
For example,
If the company made an arrangement to pay X shares for each X number for employees if they remain for 5 years and also with a condition that sales need to achieve X% growth per year in order to vest, so would we not expense the cost if the growth in particular year is below the target or we take an account for whole period?
Regards
Ask the Tutor ACCA SBR
IFRS 2
9y ago#1Hi,
Non-market based vesting conditions are accounted for over the vesting period, so given that the increase in sales is such a condition then if we haven't met it at the reporting date we wouldn't recognise the expense as you state.
Thanks
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