Equity-settled award: cumulative expense, expense of the period, reserve and entries

• Award: beneficiaries, instruments, grant date, vesting period, settlement method

  TextRequired

  OPTIONS_FOR_100_MANAGERS_GRANTED_ON_1_JANUARY_20X6_EQUITY_SETTLED_VESTING_OVER_TWO_YEARS

• Vesting conditions and estimate of the number of instruments expected at the closing date

  Text

  SERVICE_AND_EBITDA_TARGET_90_MANAGERS_EXPECTED_TO_STAY

• Number of instruments expected to vest (case data)

  Number

• Unit fair value at the grant date (case data)

  Number

  6

• Expected total cost at the closing date: fair value × expected number (case data)

  NumberRequired

  108,000

• Elapsed share of the vesting period (%, case data)

  NumberRequired

  50 %

• Cumulative expense already recognised at the previous closing date

  NumberRequired

  0

• Share-based payment reserve at the opening date

  Number

  0

• Closing reserve per the ledger

  Number

  54,000

• Cash received on exercise (case data)

  Number

• Reserve transferred on exercise (case data)

  Number

• Share capital and premium recognised on exercise (case data)

  Number

• Documents obtained and referenced (plan rules, grant-date valuation, leavers schedule, ledger)

  EvidenceRequired

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Points examined: expense of the period

  ChecklistRequired

  • Fair value fixed at the grant date and not revised afterwards
  • Services recognised as they are rendered over the vesting period
  • Service and non-market performance conditions: expected number revised, cumulative catch-up at the closing date
  • Market or non-vesting condition not met: no reversal of the expense for that reason
  • Expense of the period = cumulative expense at the closing date − cumulative expense already recognised

IFRS 2 §15IFRS 2 §19

• Cumulative expense at the closing date (expected total cost × elapsed share)

  Calculation

  54,000

  Expected total cost at the closing date: fair value × expected number (case data) ; Elapsed share of the vesting period (%, case data)

• Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal)

  Calculation

  54,000

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to recognise as an expense

  Calculation

  54,000

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to reverse (downward revision)

  Calculation

  0

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Closing reserve (opening + expense of the period − transfer on exercise)

  Calculation

  54,000

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Check: ledger reserve − recomputed reserve (expected: zero)

  Calculation

  0

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Entry of the expense of the period

  Entry

  Account	Debit	Credit
  Services expense	54,000
  Share-based payment reserve		54,000

• Entry of the reversal after revision of the expected number

  Entry

  Debit Share-based payment reserve ← Part of the period to reverse (downward revision) ; Credit Services expense (reversal) ← Part of the period to reverse (downward revision)

• Entry of the exercise of the options

  Entry

  Debit Cash received on exercise ← Cash received on exercise (case data) ; Debit Share-based payment reserve ← Reserve transferred on exercise (case data) ; Credit Share capital and premium ← Share capital and premium recognised on exercise (case data)

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Vesting period retained

  JudgmentRequired

  Vesting period confirmed

  Vesting period confirmed / Vesting period revised / Not applicable

  Professional judgment: the vesting period runs from the grant date to the date on which all the vesting conditions are met; its length is an estimate of the case when a performance condition determines it.

• Rationale: grant date, date on which the service and performance conditions end

  Text

  GRANT_DATE_1_JANUARY_20X6_AND_VESTING_DATE_31_DECEMBER_20X7

• Estimate of the number of instruments expected

  JudgmentRequired

  Best estimate unchanged

  Best estimate unchanged / Estimate revised upward / Estimate revised downward / Actual number known at the vesting date / Not applicable

  Professional judgment: the expected number is the best estimate of the entity at the closing date; only a service or non-market performance condition changes it.

• Rationale: leavers observed and expected, achievement of the non-market performance condition

  Text

  NINETY_MANAGERS_EXPECTED_TO_STAY_BEST_ESTIMATE_OF_MANAGEMENT

IFRS 2 §15

• Information to prepare on the expense

  Checklist

  • Total expense of the period for equity-settled awards
  • How the grant-date fair value was determined
  • Number of instruments, vesting conditions and maximum term

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Award describedPass
• Expected total cost enteredPass
• Elapsed share enteredPass
• Previous cumulative expense enteredPass
• Vesting period judged and supportedPass
• Expected number judged and supportedPass
• Share capital and premium = cash received + reserve transferredNot evaluated
• Recomputed reserve = ledger reservePass
• Expense entry balancedPass
• Reversal entry balancedNot evaluated
• Exercise entry balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

-54,000

OCI

0

Equity

0

• Award: beneficiaries, instruments, grant date, vesting period, settlement method

  TextRequired

  OPTIONS_FOR_100_MANAGERS_GRANTED_ON_1_JANUARY_20X6_EQUITY_SETTLED_VESTING_OVER_TWO_YEARS

• Vesting conditions and estimate of the number of instruments expected at the closing date

  Text

  SERVICE_AND_EBITDA_TARGET_40_MANAGERS_MET_THE_SERVICE_CONDITION_AFTER_THE_SALE_OF_A_DIVISION

• Number of instruments expected to vest (case data)

  Number

• Unit fair value at the grant date (case data)

  Number

  6

• Expected total cost at the closing date: fair value × expected number (case data)

  NumberRequired

  48,000

• Elapsed share of the vesting period (%, case data)

  NumberRequired

  100 %

• Cumulative expense already recognised at the previous closing date

  NumberRequired

  54,000

• Share-based payment reserve at the opening date

  Number

  54,000

• Closing reserve per the ledger

  Number

  48,000

• Cash received on exercise (case data)

  Number

• Reserve transferred on exercise (case data)

  Number

• Share capital and premium recognised on exercise (case data)

  Number

• Documents obtained and referenced (plan rules, grant-date valuation, leavers schedule, ledger)

  EvidenceRequired

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Points examined: expense of the period

  ChecklistRequired

  • Fair value fixed at the grant date and not revised afterwards
  • Services recognised as they are rendered over the vesting period
  • Service and non-market performance conditions: expected number revised, cumulative catch-up at the closing date
  • Market or non-vesting condition not met: no reversal of the expense for that reason
  • Expense of the period = cumulative expense at the closing date − cumulative expense already recognised

IFRS 2 §15IFRS 2 §19

• Cumulative expense at the closing date (expected total cost × elapsed share)

  Calculation

  48,000

  Expected total cost at the closing date: fair value × expected number (case data) ; Elapsed share of the vesting period (%, case data)

• Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal)

  Calculation

  -6,000

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to recognise as an expense

  Calculation

  0

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to reverse (downward revision)

  Calculation

  6,000

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Closing reserve (opening + expense of the period − transfer on exercise)

  Calculation

  48,000

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Check: ledger reserve − recomputed reserve (expected: zero)

  Calculation

  0

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Entry of the expense of the period

  Entry

  Debit Services expense ← Part of the period to recognise as an expense ; Credit Share-based payment reserve ← Part of the period to recognise as an expense

• Entry of the reversal after revision of the expected number

  Entry

  Account	Debit	Credit
  Share-based payment reserve	6,000
  Services expense (reversal)		6,000

• Entry of the exercise of the options

  Entry

  Debit Cash received on exercise ← Cash received on exercise (case data) ; Debit Share-based payment reserve ← Reserve transferred on exercise (case data) ; Credit Share capital and premium ← Share capital and premium recognised on exercise (case data)

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Vesting period retained

  JudgmentRequired

  Vesting period confirmed

  Vesting period confirmed / Vesting period revised / Not applicable

  Professional judgment: the vesting period runs from the grant date to the date on which all the vesting conditions are met; its length is an estimate of the case when a performance condition determines it.

• Rationale: grant date, date on which the service and performance conditions end

  Text

  VESTING_DATE_31_DECEMBER_20X7_REACHED

• Estimate of the number of instruments expected

  JudgmentRequired

  Actual number known at the vesting date

  Best estimate unchanged / Estimate revised upward / Estimate revised downward / Actual number known at the vesting date / Not applicable

  Professional judgment: the expected number is the best estimate of the entity at the closing date; only a service or non-market performance condition changes it.

• Rationale: leavers observed and expected, achievement of the non-market performance condition

  Text

  FORTY_MANAGERS_MET_THE_SERVICE_CONDITION_AFTER_THE_SALE_OF_A_DIVISION

IFRS 2 §15

• Information to prepare on the expense

  Checklist

  • Total expense of the period for equity-settled awards
  • How the grant-date fair value was determined
  • Number of instruments, vesting conditions and maximum term

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Award describedPass
• Expected total cost enteredPass
• Elapsed share enteredPass
• Previous cumulative expense enteredPass
• Vesting period judged and supportedPass
• Expected number judged and supportedPass
• Share capital and premium = cash received + reserve transferredNot evaluated
• Recomputed reserve = ledger reservePass
• Expense entry balancedNot evaluated
• Reversal entry balancedPass
• Exercise entry balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

6,000

OCI

0

Equity

0

• Award: beneficiaries, instruments, grant date, vesting period, settlement method

  TextRequired

  OPTIONS_FOR_100_MANAGERS_GRANTED_ON_1_JANUARY_20X6_EQUITY_SETTLED_VESTING_OVER_TWO_YEARS

• Vesting conditions and estimate of the number of instruments expected at the closing date

  Text

  ALL_CONDITIONS_MET_5000_OF_8000_OPTIONS_EXERCISED_IN_20X8

• Number of instruments expected to vest (case data)

  Number

• Unit fair value at the grant date (case data)

  Number

  6

• Expected total cost at the closing date: fair value × expected number (case data)

  NumberRequired

  48,000

• Elapsed share of the vesting period (%, case data)

  NumberRequired

  100 %

• Cumulative expense already recognised at the previous closing date

  NumberRequired

  48,000

• Share-based payment reserve at the opening date

  Number

  48,000

• Closing reserve per the ledger

  Number

  18,000

• Cash received on exercise (case data)

  Number

  50,000

• Reserve transferred on exercise (case data)

  Number

  30,000

• Share capital and premium recognised on exercise (case data)

  Number

  80,000

• Documents obtained and referenced (plan rules, grant-date valuation, leavers schedule, ledger)

  EvidenceRequired

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Points examined: expense of the period

  ChecklistRequired

  • Fair value fixed at the grant date and not revised afterwards
  • Services recognised as they are rendered over the vesting period
  • Service and non-market performance conditions: expected number revised, cumulative catch-up at the closing date
  • Market or non-vesting condition not met: no reversal of the expense for that reason
  • Expense of the period = cumulative expense at the closing date − cumulative expense already recognised

IFRS 2 §15IFRS 2 §19

• Cumulative expense at the closing date (expected total cost × elapsed share)

  Calculation

  48,000

  Expected total cost at the closing date: fair value × expected number (case data) ; Elapsed share of the vesting period (%, case data)

• Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal)

  Calculation

  0

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to recognise as an expense

  Calculation

  0

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to reverse (downward revision)

  Calculation

  0

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Closing reserve (opening + expense of the period − transfer on exercise)

  Calculation

  18,000

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Check: ledger reserve − recomputed reserve (expected: zero)

  Calculation

  0

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Entry of the expense of the period

  Entry

  Debit Services expense ← Part of the period to recognise as an expense ; Credit Share-based payment reserve ← Part of the period to recognise as an expense

• Entry of the reversal after revision of the expected number

  Entry

  Debit Share-based payment reserve ← Part of the period to reverse (downward revision) ; Credit Services expense (reversal) ← Part of the period to reverse (downward revision)

• Entry of the exercise of the options

  Entry

  Account	Debit	Credit
  Cash received on exercise	50,000
  Share-based payment reserve	30,000
  Share capital and premium		80,000

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Vesting period retained

  JudgmentRequired

  Vesting period confirmed

  Vesting period confirmed / Vesting period revised / Not applicable

  Professional judgment: the vesting period runs from the grant date to the date on which all the vesting conditions are met; its length is an estimate of the case when a performance condition determines it.

• Rationale: grant date, date on which the service and performance conditions end

  Text

  VESTING_PERIOD_ENDED_ON_31_DECEMBER_20X7

• Estimate of the number of instruments expected

  JudgmentRequired

  Actual number known at the vesting date

  Best estimate unchanged / Estimate revised upward / Estimate revised downward / Actual number known at the vesting date / Not applicable

  Professional judgment: the expected number is the best estimate of the entity at the closing date; only a service or non-market performance condition changes it.

• Rationale: leavers observed and expected, achievement of the non-market performance condition

  Text

  THE_NUMBER_OF_VESTED_OPTIONS_IS_KNOWN_AND_NOT_REVISED_IN_20X8

IFRS 2 §15

• Information to prepare on the expense

  Checklist

  • Total expense of the period for equity-settled awards
  • How the grant-date fair value was determined
  • Number of instruments, vesting conditions and maximum term

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Award describedPass
• Expected total cost enteredPass
• Elapsed share enteredPass
• Previous cumulative expense enteredPass
• Vesting period judged and supportedPass
• Expected number judged and supportedPass
• Share capital and premium = cash received + reserve transferredPass
• Recomputed reserve = ledger reservePass
• Expense entry balancedNot evaluated
• Reversal entry balancedNot evaluated
• Exercise entry balancedPass

Assets

50,000

Liabilities

0

Profit or loss

0

OCI

0

Equity

50,000

• Award: beneficiaries, instruments, grant date, vesting period, settlement method

  TextRequired

  OPTIONS_FOR_THE_CHIEF_EXECUTIVE_GRANTED_ON_1_JANUARY_20X6_EQUITY_SETTLED_VESTING_ON_31_DECEMBER_20X6

• Vesting conditions and estimate of the number of instruments expected at the closing date

  Text

  SERVICE_CONDITION_MET_AND_MARKET_CONDITION_OF_40_EUR_NOT_MET

• Number of instruments expected to vest (case data)

  Number

• Unit fair value at the grant date (case data)

  Number

  4

• Expected total cost at the closing date: fair value × expected number (case data)

  NumberRequired

  40,000

• Elapsed share of the vesting period (%, case data)

  NumberRequired

  100 %

• Cumulative expense already recognised at the previous closing date

  NumberRequired

  0

• Share-based payment reserve at the opening date

  Number

• Closing reserve per the ledger

  Number

• Cash received on exercise (case data)

  Number

• Reserve transferred on exercise (case data)

  Number

• Share capital and premium recognised on exercise (case data)

  Number

• Documents obtained and referenced (plan rules, grant-date valuation, leavers schedule, ledger)

  EvidenceRequired

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Points examined: expense of the period

  ChecklistRequired

  • Fair value fixed at the grant date and not revised afterwards
  • Services recognised as they are rendered over the vesting period
  • Service and non-market performance conditions: expected number revised, cumulative catch-up at the closing date
  • Market or non-vesting condition not met: no reversal of the expense for that reason
  • Expense of the period = cumulative expense at the closing date − cumulative expense already recognised

IFRS 2 §15IFRS 2 §19

• Cumulative expense at the closing date (expected total cost × elapsed share)

  Calculation

  40,000

  Expected total cost at the closing date: fair value × expected number (case data) ; Elapsed share of the vesting period (%, case data)

• Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal)

  Calculation

  40,000

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to recognise as an expense

  Calculation

  40,000

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to reverse (downward revision)

  Calculation

  0

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Closing reserve (opening + expense of the period − transfer on exercise)

  Calculation

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Check: ledger reserve − recomputed reserve (expected: zero)

  Calculation

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Entry of the expense of the period

  Entry

  Account	Debit	Credit
  Services expense	40,000
  Share-based payment reserve		40,000

• Entry of the reversal after revision of the expected number

  Entry

  Debit Share-based payment reserve ← Part of the period to reverse (downward revision) ; Credit Services expense (reversal) ← Part of the period to reverse (downward revision)

• Entry of the exercise of the options

  Entry

  Debit Cash received on exercise ← Cash received on exercise (case data) ; Debit Share-based payment reserve ← Reserve transferred on exercise (case data) ; Credit Share capital and premium ← Share capital and premium recognised on exercise (case data)

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Vesting period retained

  JudgmentRequired

  Vesting period confirmed

  Vesting period confirmed / Vesting period revised / Not applicable

  Professional judgment: the vesting period runs from the grant date to the date on which all the vesting conditions are met; its length is an estimate of the case when a performance condition determines it.

• Rationale: grant date, date on which the service and performance conditions end

  Text

  ONE_YEAR_VESTING_PERIOD_ENDED_ON_31_DECEMBER_20X6

• Estimate of the number of instruments expected

  JudgmentRequired

  Best estimate unchanged

  Best estimate unchanged / Estimate revised upward / Estimate revised downward / Actual number known at the vesting date / Not applicable

  Professional judgment: the expected number is the best estimate of the entity at the closing date; only a service or non-market performance condition changes it.

• Rationale: leavers observed and expected, achievement of the non-market performance condition

  Text

  THE_MARKET_CONDITION_DOES_NOT_CHANGE_THE_NUMBER_OF_OPTIONS

IFRS 2 §15

• Information to prepare on the expense

  Checklist

  • Total expense of the period for equity-settled awards
  • How the grant-date fair value was determined
  • Number of instruments, vesting conditions and maximum term

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Award describedPass
• Expected total cost enteredPass
• Elapsed share enteredPass
• Previous cumulative expense enteredPass
• Vesting period judged and supportedPass
• Expected number judged and supportedPass
• Share capital and premium = cash received + reserve transferredNot evaluated
• Recomputed reserve = ledger reserveNot evaluated
• Expense entry balancedPass
• Reversal entry balancedNot evaluated
• Exercise entry balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

-40,000

OCI

0

Equity

0

• Award: beneficiaries, instruments, grant date, vesting period, settlement method

  TextRequired

  OPTIONS_FOR_60_MANAGERS_GRANTED_ON_1_JANUARY_20X6_VESTING_OVER_FOUR_YEARS_EQUITY_SETTLED

• Vesting conditions and estimate of the number of instruments expected at the closing date

  Text

  SERVICE_AND_REVENUE_TARGET_48_MANAGERS_EXPECTED_TO_STAY

• Number of instruments expected to vest (case data)

  Number

• Unit fair value at the grant date (case data)

  Number

  8

• Expected total cost at the closing date: fair value × expected number (case data)

  NumberRequired

  192,000

• Elapsed share of the vesting period (%, case data)

  NumberRequired

  50 %

• Cumulative expense already recognised at the previous closing date

  NumberRequired

  52,000

• Share-based payment reserve at the opening date

  Number

  52,000

• Closing reserve per the ledger

  Number

  96,000

• Cash received on exercise (case data)

  Number

• Reserve transferred on exercise (case data)

  Number

• Share capital and premium recognised on exercise (case data)

  Number

• Documents obtained and referenced (plan rules, grant-date valuation, leavers schedule, ledger)

  EvidenceRequired

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Points examined: expense of the period

  ChecklistRequired

  • Fair value fixed at the grant date and not revised afterwards
  • Services recognised as they are rendered over the vesting period
  • Service and non-market performance conditions: expected number revised, cumulative catch-up at the closing date
  • Market or non-vesting condition not met: no reversal of the expense for that reason
  • Expense of the period = cumulative expense at the closing date − cumulative expense already recognised

IFRS 2 §15IFRS 2 §19

• Cumulative expense at the closing date (expected total cost × elapsed share)

  Calculation

  96,000

  Expected total cost at the closing date: fair value × expected number (case data) ; Elapsed share of the vesting period (%, case data)

• Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal)

  Calculation

  44,000

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to recognise as an expense

  Calculation

  44,000

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Part of the period to reverse (downward revision)

  Calculation

  0

  Cumulative expense at the closing date (expected total cost × elapsed share) ; − Cumulative expense already recognised at the previous closing date

• Closing reserve (opening + expense of the period − transfer on exercise)

  Calculation

  96,000

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Check: ledger reserve − recomputed reserve (expected: zero)

  Calculation

  0

  Share-based payment reserve at the opening date ; Expense of the period (cumulative expense − previous cumulative expense; negative in case of a reversal) ; − Reserve transferred on exercise (case data) ; Closing reserve per the ledger

• Entry of the expense of the period

  Entry

  Account	Debit	Credit
  Services expense	44,000
  Share-based payment reserve		44,000

• Entry of the reversal after revision of the expected number

  Entry

  Debit Share-based payment reserve ← Part of the period to reverse (downward revision) ; Credit Services expense (reversal) ← Part of the period to reverse (downward revision)

• Entry of the exercise of the options

  Entry

  Debit Cash received on exercise ← Cash received on exercise (case data) ; Debit Share-based payment reserve ← Reserve transferred on exercise (case data) ; Credit Share capital and premium ← Share capital and premium recognised on exercise (case data)

IFRS 2 §15IFRS 2 §19IFRS 2 §21IFRS 2 §21AIFRS 2

• Vesting period retained

  JudgmentRequired

  Vesting period confirmed

  Vesting period confirmed / Vesting period revised / Not applicable

  Professional judgment: the vesting period runs from the grant date to the date on which all the vesting conditions are met; its length is an estimate of the case when a performance condition determines it.

• Rationale: grant date, date on which the service and performance conditions end

  Text

  GRANT_DATE_1_JANUARY_20X6_AND_VESTING_DATE_31_DECEMBER_20X9

• Estimate of the number of instruments expected

  JudgmentRequired

  Estimate revised downward

  Best estimate unchanged / Estimate revised upward / Estimate revised downward / Actual number known at the vesting date / Not applicable

  Professional judgment: the expected number is the best estimate of the entity at the closing date; only a service or non-market performance condition changes it.

• Rationale: leavers observed and expected, achievement of the non-market performance condition

  Text

  EXPECTED_MANAGERS_FALL_FROM_52_TO_48_ACCORDING_TO_THE_MANAGEMENT_NOTE

IFRS 2 §15

• Information to prepare on the expense

  Checklist

  • Total expense of the period for equity-settled awards
  • How the grant-date fair value was determined
  • Number of instruments, vesting conditions and maximum term

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Award describedPass
• Expected total cost enteredPass
• Elapsed share enteredPass
• Previous cumulative expense enteredPass
• Vesting period judged and supportedPass
• Expected number judged and supportedPass
• Share capital and premium = cash received + reserve transferredNot evaluated
• Recomputed reserve = ledger reservePass
• Expense entry balancedPass
• Reversal entry balancedNot evaluated
• Exercise entry balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

-44,000

OCI

0

Equity

0