Share based payment Flashcards
Two share based payments
Share options
share appreciation rights SAR
Share options
Right to purchase at a specific P for a specified time period
Vesting period
Vest date
The time between grant date and exercised date
Vest date = day you can start exercising
Compensation is recognized
Share options
Through the vesting period
DR Compensation expense
CR Contributed surplus - share options
at fair value of options on grant day
if % to vest use this
Derecognition of share options
When shares expire or redeemed
Transfer from Cont surplus to common shares or expired shares
Grant date
No entry
SAR
Employees do not pay an option price to obtain the share benefit. SAR’s settled by cash or equity.
Recognition of SAR
over vesting period
DR Compensation expense
CR SAR Liab
At fair value
Derecognition of SAR
Reedem or expire.
Reedem:
dr SAR Liab
cr cash or common shares
expire
dr sar liab
cr compensation expense
