IFRS 2Chapter 6Lesson 1
Cash-settled transactions: a liability remeasured until settlement
Step 1 of 8Learning objectives
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For a cash-settled transaction, the liability is measured at fair value, remeasured at each reporting date and at the settlement date, with changes going through profit or loss; service conditions affect the number of instruments expected, market conditions the fair value of the liability.
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Learning objectives
- Explain that the liability is remeasured at each reporting date and at settlement, with changes going through profit or loss.
- Calculate the liability at a reporting date and the expense of the period for share appreciation rights.
- Record the expense, the remeasurement and the cash settlement.
- Explain the effect of market, service and non-market performance conditions on the measurement of a cash-settled liability.