Summary Share based payments

Question 1

What is it?

Answer 1

Paying for G & S with shares instead of cash.

DR Purchase
CR Equity (measure at FV of goods)

Question 2

Employee Share Schemes:

Answer 2

Spread out treatment over vesting period based on estimates

Accounting treatment if shares given:
Each year: DR Wages CR Equity
FV of options @ grant date

Accounting treatment if **cash **given:
Each year: DR Wages CR Liability
FV of shares changed each YE.

Speed up treatment if conditions met.