ACCT3321 Lecture 8: Share Based Payments.
Document Summary
Share based payment refers to provision of equity instrument (shares or shares options) to employees in lieu of cash salary. It is used as means of aligning employees interests with those of shareholders. Share based payments to be recognised in entity"s nancial statements. Requires that goods or services received in a share based payment transaction be recognised when they are received. Usually result in the recognition of an expenses (sometimes an asset) with increase in. Goods and services received and the corresponding increase in equity measured at fv of goods and services, unless fv cannot be estimated reliably. Fv of services received in transactions with employees cannot be measured reliably. Measurement is made by reference to equity instruments granted. Instruments are issued with vesting period, transactions must be recognised gradually across vesting period. A reload entitles an employee to be automatically granted new options when previously granted options are exercised using shares rather than cash to satisfy exercise price.
