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Quick question
at the vesting date does the equity go into share capital or other comprehensive income?
How do we account for sbp during the years before the vesting date?
Thanks
You account for the liability or equity at the outset and adjust it year-on-year for any changes to the number of shares expected to vest.
ie. If equity-settled share-based payment, you would dr p&l expense, credit share capital at the end of year 1.
If cash-settled share-based payment, dr p&l expense, credit liability (note with cash-settled, you revise the fair value in each period) at the end of year 1.
Thanks this is very helpful. I understand everything apart from where the equity goes. I say this because I have done a mock exam and at the end of yr 1 the equity was put into OCI whereas you are saying it goes into share capital.
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