Just another WordPress site
Blog posts from Annual Reporting Posts
An entity that controls one or more entities. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit the use of (locally authorised and/or amended) IFRS Standards for all or some publicly listed companies. The … Read more
An entity that is controlled by another entity. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit the use of (locally authorised and/or amended) IFRS Standards for all or some publicly listed companies. The … Read more
Carrying amount is the amount at which an asset is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses. (IAS 40 5, IAS 41 8) OR Carrying amount is the amount at which an asset is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses thereon. (IAS 16 8, IAS 36 … Read more
An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. IFRS terms or definitions come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). Individual jurisdictions around the world may require or permit the use of (locally authorised and/or amended) … Read more
Topics hide Option valuation models Model selection Simple model explanation Model selection Black-Scholes-Merton Lattice Implementing a lattice model Monte Carlo Comparing option valuation models Complex capital structures Option valuation models Option valuation models use mathematical techniques to identify a range of possible future share prices at the exercise date. From these possible future share prices, … Read more
Topics hide Cancellation of employee share-based payments Cancellation by employee Case – Voluntary cancellation by employee Case – Cancellation by employee due to failure to meet non-vesting condition Cancellation by entity Case – Cancellation by employer with compensation payment Case – Cancellation of share-based payment with non-market performance condition Cancellation of employee share-based payments Cancellations … Read more
Topics hide Replacements of employee share-based payments Case – Replacement award with incremental fair value Case – New plan without cancelling old plan Replacements of employee share-based payments Sometimes a share-based payment is granted as a replacement for another share-based payment that is cancelled. In this case, the principles of modification accounting are applied. The … Read more
Topics hide Modifications of employee share-based payment transactions Modifications Modifications that do not change classification of arrangement Increases in fair value of share-based payment Determining whether there is an increase in fair value of share-based payment Increases in number of equity instruments granted Case – Increase in number of equity instruments granted Beneficial modifications of … Read more
Topics hide Determination of grant date Approval and communication by the employer Case – Grant date and communication of a plan to the employees Meaning of ‘shared understanding’ Case – Grant date and determination of exercise price dependent on formula Acceptance by the employee Case – Annual acceptance and monthly reductions Grant date decision tree … Read more
Topics hide Determination of the vesting period Case – Service commencement date before grant date Graded vesting Case – Graded vesting Attribution to periods Case – Straight-line attribution and different reference periods Case – Straight-line attribution with challenging performance target Variable vesting period Market condition with variable vesting period Case – Market condition not met … Read more