10. Share-Based Payment

Question 1

Types of share based payments

Answer 1

Question 2

IFRS Standard

Answer 2

IFRS 2

Question 3

Equity Settled

Answer 3

• shares
• options
  -> for past service
  -> for future service

Question 4

Equity Settled Shares

Answer 4

source of share: new shares from capital increase or treasury stock
journeys:
personnel expense // subscribed capital
cash________________ share premium

Question 5

Equity Settled Options

Answer 5

• right to purchase entitys shares for fixed or determinable price in specific period of time
• source of shares: new shares from capital increase, treasury stock, convertible or warrant bonds
• for past service:
  at grant:
  personnel expense // share premium measured at fair value
  -> change in fair value: no journey

employees exercise option:
cash // subscribed capital
________share premium

• for future service
  at grant:
  no journey entry

for each year of the vesting period:
personnel expense // share premium
-> adjust, when more/less employees stay

exercise option:
cash // subscribed capital
________share premium

Question 6

Cash Settled Options

Answer 6

• always use the right fair value!
  initial measurement: liability is measured at fair value, similar to equity-settled options: personnel expense is split over the time of the vesting period:
  personnel expense // provisions for virtual shares
  -> Each year of the vesting period

exercise of option:
provision for virtual shares // bank
——————————————-other op. inc.
-> no exercise:
provision for virtual shares // bank

Question 7

Adjustment when more/less people stay

Answer 7

prior to new information: Normal
after new information:
new number * options per person * fair value * (periods we are in/max periods) - what has been recognised already