IFRS 2Chapter 5Lesson 1
Modifying, cancelling or settling a plan during vesting
Step 1 of 9Learning objectives
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A modification never brings the expense below the grant-date cost; a beneficial modification adds the incremental fair value to it; a cancellation accelerates the remaining expense and a payment to the beneficiary is a repurchase of equity.
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Learning objectives
- Explain that a beneficial modification adds to the original expense the fair value difference measured at the modification date.
- Calculate the incremental fair value and the additional expense over the remaining period.
- Determine the effect of a non-beneficial modification on the expense and justify the assessment of whether it is beneficial.
- Explain the acceleration of the remaining expense and the treatment of a payment to the beneficiary on cancellation, then calculate them.