Share based Payments Flashcards
What are the 2 primary methods of Share-based Payments
Share options and Share appreciation rights
What are share options
They are rights given to employees to buy the shares at the exercise price regardless of the market value at the time the shares are exercised
what is a vesting period
The period from grant date to when the options are earned
How are share options & Share appreciation rights measured
at fair value on the grant date to contributed surplus -share options
When are share options to be & Share appreciation rights recorded
They should be recorded as they are earned.
If the service relating to the option was already exercised then there the full amount can be recorded.
otherwise, it has to be prorated for the period and amount earned
When are the share options & Share appreciation rights derecognized
When redeemed or when they expire.
The variance between cash (option $ x # shares)
and contributed share surpluses ( FMV per share x Shares ) = Common shares
What are share appreciation rights
Share appreciation rights allow employees to benefit from the FMV of the shares appreciate without having to pay anything
How can share appreciation rights be settled
In cash or in equity (Shares)
How is SARs settled with Shares
Number of SARS x (Market Price- Benchmark price)/Market price
