International Financial Reporting Standards_guide.pdf

312 Chapter 29 Share-Based Payment (IFRS 2)
29.4.10 If the equity instruments granted do not vest until the counterparty completes a
specified period of service, the amount recognized should be adjusted over any vesting
period for changes in the estimate of the number of securities that will be issued (referred to
as the true up calculation), but not for changes in the fair value of those securities. Therefore,
on the vesting date, the amount recognized is the exact number of securities that can be
issued as of that date, measured at the fair value of those securities at grant date.
29.4.11 If the entity cancels or settles a grant of equity instruments during the vesting
period (other than a grant canceled by forfeiture when the vesting conditions are not satisfied),
the following accounting requirements apply:
■ The entity accounts for the cancellation or settlement as an acceleration of vesting by
recognizing immediately the amount that otherwise would have been recognized over
the remainder of the vesting period.
■ The entity recognizes in equity any payment made to the employee on the cancellation
or settlement to the extent that the payment does not exceed the fair value at the repurchase
date of the equity instruments granted.
■ The entity recognizes as an expense the excess of any payment made to the employee
on the cancellation or settlement over the fair value at the repurchase date of the equity
instruments granted.
■ The entity accounts for new equity instruments granted to the employee as replacements
for the cancelled equity instruments as a modification of the original grant. The
difference between the fair value of the replacement equity instruments and the net fair
value of the cancelled equity instruments at the date the replacement equity instruments
are granted is recognized as an expense.
Cash-Settled Share-Based Payment Transaction
Recognition
29.4.12 An entity should recognize the goods or services received or acquired in a sharebased
payment transaction when it obtains the goods or as the services are received. For
cash-settled share-based payment transactions, the corresponding credit should be recognized
as a liability.
Measurement
29.4.13 The goods and services received and the liability incurred should be measured at
the fair value of the liability. Until the liability is settled, the entity should remeasure the fair
value of the liability at each reporting date and at the date of settlement, with any changes in
fair value recognized in profit or loss for the period.
29.4.14 If the share-based payment granted does not vest until the counterparty completes
a specified period of service, the amount recognized should be adjusted over any vesting
period for changes in the estimate of the number of benefits expected to vest (referred to as
the true up calculation) and for changes in the fair value of those securities.
29.4.15 If the entity cancels or settles a grant a cash-settled grant, the same principles as
discussed in 29.4.11 should be applied.
Share-Based Payment Transactions with Cash Alternatives
29.4.16 For share-based payment transactions in which the terms of the arrangement provide
either the entity or the counterparty with the choice of settlement either in cash (or other