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Dear Sir,
On chapter 15 Share based payment, Example No 2 ( Edam).
we have seen that by the y/e 2014, 4 directors are estimated to leave the company,
and y/e 2015 one director is estimated. why didn’t you sum up and get an estimation
of 5 directors leaving the company by y/e 2015 ?Also is there any video recorded for chapt 12 impairments (IAS 36) ?
Thanks for your time
Regards
Hi,
Estimating the expected number of employees is always the most tricky part of any questions. The key is that at the end of 2014 we are estimating the number of employees that will leave in all future years up to the vesting date, so here we expect 4 to leave next year and in further years. We aren’t yet at 2015 and so ignore the 2015 estimate of one employee leaving as this is already included in the estimate of four.
At the end of 2015, we are again estimating the leavers in the future years up to the vesting date but now we’re that bit closer to the vesting date as we are one year on and so the expected number has fallen, presumably as employees are happy to hold on for at least another year to get the share options.
Hope this helps, let me know if you’re still struggling,
Thanks
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