IFRS 2Chapter 3Lesson 1
Measuring a grant to employees: the grant date and a fixed fair value
Step 1 of 7Learning objectives
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Employee services are measured by the fair value of the instruments granted, measured at the grant date, that is when the terms are agreed and approvals obtained; this value is not remeasured afterwards.
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Learning objectives
- Explain why employee services are measured by the fair value of the instruments granted and not by that of the services.
- Determine the grant date of a plan when a shareholder approval is required and when services have already begun.
- Explain that the fair value of an equity-settled grant is not remeasured after the grant date.
- Record the exercise of options: cash received and reserve cleared against share capital and premium.