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hi sir
my first question is how do we know if this is cash settled share based payment or equity settled share based payment.
in examiner report he said you cannot only give reference to the standard like he do in his solution,”in accordance with IFRS 2″ without giving the detail of treatment.
my question is in respect of treatment of remaining 9 million. how do we recognize it as equity or liability?
how do we consider the change of 4 percent in 20×8 as initially it was 10 percent and now 4 percent.
I don’t understand the concept ” market based vesting condition are adjusted for in calculation of the fair value at the grant date”
Please review my debrief of this question which shows you what you need to write
https://opentuition.com/acca/sbr/acca-strategic-business-reporting-sbr-lectures/
If you have still have questions after watching, please come back to me
so I understand it an equity based.
for the measurement part I would like to ask that 18 million is based on the estimated that 10 percent will leave. for the remaining 9 million which we recognize over two years do we need to change the estimate based on 4 percent.
20×8
100*10,000*.96*20=19,200,000-9,000,000=10,200,000
10,200,000*1/2=5,100,000 as equity in y1
20×9
10,200,000 cumulative balance in equity in y2
expense y1= 5.1 million
y 2 = 5.1 millionI think the expense should take account of expected leavers at the SFP date. So for the x8 calculation I would use 96% (as you have).
By the time they get to x9 the actual number of leavers will be known and the x9 calculation will be based on that number.
Key point to stress in the answer is that we must ignore the share price condition.
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