IFRS 2Chapter 4Lesson 1
Vesting conditions, the vesting period and no true-up for market conditions
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The conditions of a plan are classified as service, performance (market or non-market) and non-vesting conditions; the expense is spread over the vesting period, and market conditions give rise to no true-up when they are not met.
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Learning objectives
- Distinguish service conditions, market performance conditions, non-market performance conditions and non-vesting conditions.
- Explain that the vesting period is the period over which the expense is spread, from the grant date until the conditions are met.
- Calculate the cumulative expense at a date with an elapsed share of the period supplied by the case.
- Distinguish the effect of failing a market condition from that of failing a service condition.