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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
Topics hide Employee share purchase plans Case – Share purchase plan at fixed price for longer period Case – Impact of classification as true ESPP or as option plan Share purchases funded through loans Case – Share purchase funded through loan: Net settlement Case – Share purchase funded through loan: Gross settlement Determining assets to … Read more
Topics hide Fair value employee share options Fair value ESOPs – Assumptions Fair value ESOPs – Expected volatility expected term Selecting inputs to option pricing models Share price Exercise price Expected volatility Historical volatility Implied volatility Expected dividends Risk-free rate Expected term Vesting and non-vesting conditions Restrictions on transferability Fair value employee share options Share … Read more
Topics hide Employee cash-settled share-based payments Overview Basic principles of accounting for cash-settled share-based payment transactions with employees Initial measurement Remeasurements Case – Cash-settled share-based payment transaction with change in value of equity instrument Capitalisation of the services received Case – Cash-settled share-based payment with capitalisation Case – Cash-settled share-based payment with service and market … Read more
Topics hide Transfer pricing for transactions between related parties Arm’s length transaction principle OECD Transfer pricing methods Traditional Transaction Methods 1. Comparable Uncontrolled Price Method CUP example 2. The Resale Price Method Resale price example 3. The Cost Plus Method Cost plus example Transactional Profit Methods 4. The Comparable Profits Method Comparable profits transfer example … Read more
The new lease standard IFRS 16 has been here for a while and yes, it imposed a challenges on all companies who leased their assets under operating leases. The reason is that IFRS 16 requires presenting ALL the leases in the same way, regardless whether they were classified as finance or operating. Just for the … Read more