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I am confused about one thing: in which case do you revise the provision/equity increase at the end of each year of the vesting period and adjust it if market price has changed? Was it related to whether the vesting conditions are market or non- market related?
IFRS 2 deals with two types of Share Based payments.
i) Cash Settled : In this case, the liability is increased as a consequence of Expense, at every year end date with respect to market price of the shares at year end.ii) Equity Settled : for this type of share based transactions, equity is credited with respect to the market value at grant date, and is not adjusted even if market price has changed, only the expected vestage is changed to actual vestage at the vesting date.
Market conditions are not accounted for under sharebased transactions.
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@dineshh: indeed,and under the equity,all conditions must b vested..it does not matter whether the options r exercised or not..
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