Context · Dated fact of the file
Vandrel: from the managers' option plan to the group's arrangements
Vandrel SA, a fictitious industrial group, IFRS financial statements, year-end 31 December.
IFRS 2 · Case studies (Step 3 of 5)
Practical case
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File · Progressive casePath L1 → L4L1 · Fundamental
Vandrel: from the managers' option plan to the group's arrangements
Vandrel SA, a fictitious industrial group, IFRS financial statements, year-end 31 December.
2 documents6 tasks
- Period
- Year N
- Standards
- IFRS 2 — Share-based Payment
- Levels
- 0 / 4 levels validated
- Current level
- L1 · Guided≈ 120 min
Assistance levelFull guidance · strong assistance
- Method: shown
- Checklist: shown
- Hints: shown
- Step-by-step work: shown
Case brief
L1 · Guided · Year N
Level 1: classify the plan, date the grant, first expense
Progressive case in four levels around Vandrel's share-based payments: (1) classification, grant date, conditions and the first expense; (2) cumulative expense with true-up over several years; (3) modification, cancellation, cash-settled rights and a settlement choice; (4) the parent's grant to a subsidiary's employees, net settlement for withholding tax and moving from cash to equity. The numbers of instruments expected, fair values, rates and elapsed fractions of the period are case data; the case never presents them as rules of the standard.
Vandrel SA launches an option plan for its managers in year N. You classify the arrangements, determine the grant date, identify the conditions and post the first entry. The standards involved are announced.
Fundamental level: the method, help and references are shown.
Method
- 1Read the brief and the assignment.
- 2Open each document and spot the relevant data.
- 3Carry out the work in the suggested order.
- 4Submit, then read the conclusion and the model answer.
File checklist
- Open each piece (0 / 2 consulted) · to do
- Answer the questions of the level (0 / 6) · to do
- Validate the level, then read the conclusion · to do
Events
The file, period by period
2 / 6 stages reached
Initial event · L1·Year N · Current stage
Level 1: classify the plan, date the grant, first expense
Vandrel SA launches an option plan for its managers in year N. You classify the arrangements, determine the grant date, identify the conditions and post the first entry. The standards involved are announced.
Pieces added
- Plan A sheet
- Other Vandrel arrangements
New period · L2·Years N+1 to N+3 · Upcoming: unlocks after the current stage
Upcoming stage
New period · L3·Years N+1 to N+3 (other arrangements) · Upcoming: unlocks after the current stage
Upcoming stage
New period · L4·Years N+2 and N+3 (group) · Upcoming: unlocks after the current stage
Upcoming stage
Conclusion · Upcoming: unlocks after the current stage
Upcoming stage
Documents
Case documents
2 documents to work from at this level.
Document 1Document
Plan A sheet
The facts are teaching assumptions.
| Item | Data |
|---|---|
| Beneficiaries | 95 managers, 400 options each, i.e. 38,000 options |
| Settlement | Delivery of Vandrel shares on exercise |
| Services | Four years from 1 January N |
| Conditions | Stay in post four years; cumulative revenue growth; share price at least equal to a target at the vesting date |
| Board proposal | 10 December N−1 |
| Shareholders' approval | 20 January N |
| Fair value per option at the date the agreement is complete | €8 |
| Share of the vesting period elapsed at 31 December N | 25% (case data) |
| Number of options expected to vest at 31 December N | 35,600 |
| Expected total cost (35,600 × €8) | €284,800 (given) |
Data
Facts of the file
- Entity
- Vandrel SA, a fictitious industrial group, IFRS financial statements, year-end 31 December.
- Period
- Year N
- Current level
- L1 · Guided
- Standards
- IFRS 2 — Share-based Payment
Pieces carried over from earlier levels
First level: all the data is in the brief and the pieces of this level.
Questions
6 parts to answer, marked when you submit the level.
- Information to identify1
- Questions2
- Analysis and judgement1
- Calculations1
- Journal entries1
Information to identify
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Sort plans A, B, D and E by settlement method.
Drag each item into its category, or tap the category under the item.
To sort4
Plan A: delivery of shares on exercise of the options
Plan B: cash amount linked to the rise in the share price
Plan D: bonus equal to the value of 300 shares
Plan E: free shares delivered after two years
Equity-settled0
Cash-settled0
5 more questions will appear once the current question is complete.
Complete the question to continue.
Workspace
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Conclusion
Answer every part to submit the level and see the conclusion.
Normative references
- IFRS 2 §2
- IFRS 2 §30
- IFRS 2
- IFRS 2 §7
- IFRS 2 §11
- IFRS 2 §27
- IFRS 2 §19
- IFRS 2 §21A
- IFRS 2 §15
- IFRS 2 §21
- IFRS 2 §26
- IFRS 2 §28
- IFRS 2 §34
- IFRS 2 §35
- IFRS 2 §43A