share based payment

This topic has 1 reply, 2 voices, and was last updated 9 years ago by P2-D2.

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December 10, 2016 at 11:11 pm #363174
mefinyapascal27
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Please sir how to account for employees bonus that will be settled in share and the payment depends solely on the performance of the company?
Is it a liability or equity instrument?
December 14, 2016 at 4:59 pm #363699
P2-D2
Keymaster
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Hi,

If you are issuing shares then it would be an equity instrument. It would only be a liability if the bonus were to be paid in cash.

Thanks
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