IFRS 2Chapter 4Lesson 2
Revising the expected number and calculating the expense, year after year
Step 1 of 8Learning objectives
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The cumulative expense is the grant-date cost times the number of instruments expected to vest and the elapsed share of the period; the number is revised at each reporting date and the difference is caught up in the period of the revision.
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Learning objectives
- Explain that the number of instruments expected to vest is revised at each reporting date and that the adjustment is a cumulative catch-up.
- Calculate the cumulative expense and then the expense for the year of a multi-year plan, with the expected number and the elapsed share supplied by the case.
- Record the expense of each year, any reversal and the balance of the reserve.
- Assess the effect of a revision of the leaver estimate on profit and justify the estimate.