Beruflich Dokumente
Kultur Dokumente
18.2
18.3
Refer to Question 18.1 for an overview of the types of share-based payment transactions
addressed by AASB 2. The share-based payment transaction in question is an equity-settled
share-based payment transaction.
18.4
There is a general requirement for a share-based payment transaction to be measured at fair value;
however, whether the transaction is measured at the fair value of the goods or services, or the fair
value of the equity instrument depends upon whether the transactions are with employees or with
other parties, and whether a fair value can be determined reliably for the goods or services, or for
the equity instrument.
AASB 2 divides its specific recognition and measurement requirements into separate sections
according to the type of share-based transaction being considered. That is, separate parts of the
standard are devoted to:
181
182
Where the other party to the transaction has the right to demand cash or equity settlement, the
transaction may be considered to give rise to a compound financial instrument with both a
liability and an equity component. The equity component would be measured as the difference
between the fair value of the goods and services received and the fair value of the liability
component as at the date on which the goods and services are provided.
18.5To the extent that a fair value can be determined reliably then the transaction would be measured at
the fair value of the goods being supplied. Paragraph 10 of AASB 2 states:
For equity-settled share-based payment transactions, the entity shall measure the
goods or services received, and the corresponding increase in equity, directly, at the
fair value of the goods or services received, unless that fair value cannot be estimated
reliably. If the entity cannot estimate reliably the fair value of the goods or services
received, the entity shall measure their value, and the corresponding increase in equity,
indirectly, by reference to the fair value of the equity instruments granted.
18.6
There is a general assumption that transactions with employees cannot be reliably measured on the
basis of the value of the services being provided. Therefore, transactions with employees are
typically measured at the fair value of the equity instruments being granted. As paragraph 11 of the
standard states:
To apply the requirements of paragraph 10 to transactions with employees and others
providing similar services, the entity shall measure the fair value of the services
received by reference to the fair value of the equity instruments granted, because
typically it is not possible to estimate reliably the fair value of the services received, as
explained in paragraph 12. The fair value of those equity instruments shall be
measured at grant date.
18.7
Should the equity instruments not vest at grant date, or where equity instruments are granted
subject to vesting conditions, for example the employee is required to complete a predetermined
period of service, paragraph 15 of AASB 2 creates a presumption that they are a payment for
services to be received during the vesting period. As paragraphs 14 and 15 of AASB 2 state:
14 If the equity instruments granted vest immediately, the counterparty is not required to
complete a specified period of service before becoming unconditionally entitled to those
equity instruments. In the absence of evidence to the contrary, the entity shall presume
that services rendered by the counterparty as consideration for the equity instruments
have been received. In this case, on grant date the entity shall recognise the services
received in full, with a corresponding increase in equity.
15 If the equity instruments granted do not vest until the counterparty completes a specified
period of service, the entity shall presume that the services to be rendered by the
counterparty as consideration for those equity instruments will be received in the future,
during the vesting period. The entity shall account for those services as they are
rendered by the counterparty during the vesting period, with a corresponding increase in
equity. For example:
(a)
(b)
183
condition is satisfied, and the length of the vesting period varies depending on
when that performance condition is satisfied, the entity shall presume that the
services to be rendered by the employee as consideration for the share options will
be received in the future, over the expected vesting period. The entity shall estimate
the length of the expected vesting period at grant date, based on the most likely
outcome of the performance condition. If the performance condition is a market
condition, the estimate of the length of the expected vesting period shall be
consistent with the assumptions used in estimating the fair value of the options
granted, and shall not be subsequently revised. If the performance condition is not
a market condition, the entity shall revise its estimate of the length of the vesting
period, if necessary, if subsequent information indicates that the length of the
vesting period differs from previous estimates.
18.8
18.9
184
future, over the expected vesting period. The entity shall estimate the length of the
expected vesting period at grant date, based on the most likely outcome of the
performance condition. If the performance condition is a market condition, the
estimate of the length of the expected vesting period shall be consistent with the
assumptions used in estimating the fair value of the options granted, and shall not be
subsequently revised. If the performance condition is not a market condition, the entity
shall revise its estimate of the length of the vesting period, if necessary, if subsequent
information indicates that the length of the vesting period differs from previous
estimates.
185
18.11 If it is not considered possible to determine the fair value of equity instruments, even by using
various valuation techniques such as share option pricing models (and this is deemed by the
standard to happen only on rare occasions), the equity instruments may be valued at their
intrinsic value. Intrinsic value is defined in AASB 2 as:
The difference between the fair value of the shares to which the counterparty has the
(conditional or unconditional) right to subscribe or which it has the right to receive, and the
price (if any) the counterparty is (or will be) required to pay for those shares. For example,
a share option with an exercise price of CU15, on a share with a fair value of CU20, has an
intrinsic value of CU5.
According to paragraph 24 of AASB 2:
The requirements in paragraphs 16-23 apply when the entity is required to measure a sharebased payment transaction by reference to the fair value of the equity instruments granted.
In rare cases, the entity may be unable to estimate reliably the fair value of the equity
instruments granted at the measurement date, in accordance with the requirements in
paragraphs 16-22. In these rare cases only, the entity shall instead:
(a) measure the equity instruments at their intrinsic value, initially at the date the entity
obtains the goods or the counterparty renders service and subsequently at each
reporting date and at the date of final settlement, with any change in intrinsic value
recognised in profit or loss. For a grant of share options, the share-based payment
arrangement is finally settled when the options are exercised, are forfeited (e.g. upon
cessation of employment) or lapse (e.g. at the end of the options life); and
(b) recognise the goods or services received based on the number of equity instruments
that ultimately vest or (where applicable) are ultimately exercised. To apply this
requirement to share options, for example, the entity shall recognise the goods or
services received during the vesting period, if any, in accordance with paragraphs 14
and 15, except that the requirements in paragraph 15(b) concerning a market condition
do not apply. The amount recognised for goods or services received during the vesting
period shall be based on the number of share options expected to vest. The entity shall
revise that estimate, if necessary, if subsequent information indicates that the number of
share options expected to vest differs from previous estimates. On vesting date, the
entity shall revise the estimate to equal the number of equity instruments that ultimately
vested. After vesting date, the entity shall reverse the amount recognised for goods or
services received if the share options are later forfeited, or lapse at the end of the share
options life.
186
Paragraph 20 of the November Exposure Draft specifies that the fair value of options
granted shall be either:
1.
2.
187
188
Dr
Cr
Inventory
Share capital
200,000
200,000
30 June 2011
30 June 2012
200
200
(30)
(30)
(25)
115
(30)
(30)
(35)
105
13.0%
13.0%
10.0%
11.5%
9.0%
10.67%
13.0%
9.0%
189
Year
30 June 2010
30 June 2011
30 June 2012
Expected
number of
employees
to vest
150
115
105
Shares
per
employee
Fair value
of equity
instruments
500
500
500
$14.00
$14.00
$14.00
Expected
portion of
vesting
period
1/2
2/3
3/3
Cumulative
remuneration
expense up to
previous period
Cumulative Remuneration
remuneration
expense for
expense
period
$525 000
$536 667
$735 000
$525 000
$536 667
$525 000
$11 667*
$198 333**
The accounting journal entries for the years ending 30 June 2010, 2011 and 2012
30 June 2010
Dr
Salaries expense
Cr
Share capital
525 000
30 June 2011
Dr
Salaries expense
Cr
Share capital
11 667
30 June 2012
Dr
Salaries expense
Cr
Share capital
198 333
525 000
11 667
198 333
30 June 2010
30 June 2011
30 June 2012
200
200
200
(15)
(15)
(30)
(15)
(30)
(30)
(30)
(20)
155
135
125
Repricing of options
Fair value of original share options (immediately prior to repricing)
Fair value of repriced options
Incremental fair value granted
$3.00
$5.00
$2.00
1810
Year
Expected
number of
employees
to vest
155
30 June 2010
30 June 2011
Initial issue
Incremental fair value
granted
Total expense for 2011
30 June 2012
Incremental fair value
granted
Total expense for 2012
Share
options per
employee
Fair value
of equity
instruments
$5.00
Expected
portion of
vesting
period
1/3
Cumulative
remuneration
expense up to
previous period
300
135
Cumulative Remuneration
remuneration
expense for
expense
period
300
$5.00
2/3
$77 500
135
300
$2.00
1/2
125
300
$5.00
3/3
$135 000
$187 500
125
300
$2.00
2/2
$40 500
$75 000
$77 500
$77 500
$135 000
$57 500
$40 500
$40 500
$98 000*
$52 500
$34 500
$87 000**
* $98 000 = [(135 x 300 x $5.00 x 2/3) - $77 500] + (135 x 300 x $2.00 x )
** $87 000 = [(125 x 300 x $5.00 x 3/3) - $135 000] + [(125 x 300 x $2.00 x 2/2) - $40 500]
The above calculations are based on the expectations held at the end of each reporting period. The cost associated with the options
originally issued prior to repricing is shared across the vesting period.
Here the modification increases the fair value of the equity instruments granted, measured immediately
before and after the modification. Coogee Ltd includes the incremental fair value granted in the
measurement of the amount recognised for services received as consideration for the equity instruments
granted.
The accounting entries would be:
30 June 2010
Dr
Salaries expense
Cr
Share capital
77 500
30 June 2011
Dr
Salaries expense
Cr
Share capital
98 000
30 June 2012
Dr
Salaries expense
Cr
Share capital
87 000
18.18
Year end
Calculation
30 June
2010
30 June
2011
30 June
2012
77 500
98 000
87 000
Remuneration expense
for period
$-
Cumulative
remuneration expense
$-
$50 000
$50 000
$50 000
$100 000
50 000
30 June 2012
1811
Dr
Cr
Salaries expense
Accrued salaries expense
1 July 2012
Dr
Accrued salaries expense
Cr
Bank
50 000
50 000
100 000
100 000
18.19 The transaction is a share-based arrangement with a cash alternative at the option of the employee.
Vesting is conditional upon the managing director completing three years service. The transaction
is a compound financial instrument (also discussed in Chapter 15), so the identified debt and
equity components of the financial instrument need to be accounted for separately.
Fair value of debt component
Phantom shares
30 000
$19.00
35 000
$45 000
Fair value
of equity components
$45 000
$45 000
$45 000
Phantom
shares
30 000
30 000
30 000
Share price
at balance sheet
date
$16.00
$21.00
$23.00
Vesting
period
1/3
2/3
3/3
Cumulative
expense
$15 000
$30 000
$45 000
Vesting
period
Cumulative
expense
1/3
2/3
3/3
$160 000
$420 000
$690 000
Expense
for year
$15 000
$15 000
$15 000
Expense
for year
$160 000
$260 000
$270 000
Journal entries
30 June 2010
Dr
Salaries expense
175 000
Cr
Liability for employee services
160 000
Cr
Share capital
15 000
(the combined expense is calculated by adding the equity component to the liability component
represented by the phantom shares)
30 June 2011
Dr
Salaries expense
275 000
Cr
Liability for employee services
Cr
Share capital
260 000
15 000
30 June 2012
Dr
Salaries expense
285 000
Cr
Liability for employee expenses
Cr
Share capital
270 000
15 000
1812