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IFRS 2Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 2L1 · Fundamental

Documents

Company profile and case conventions

Memo

Company profile and case conventions

Daveline SA (fictitious entity) closes its accounts on 31 December 20X6; its functional currency is the euro. Case conventions: amounts in EUR; the fair value per option at the grant date is the one of the expert, case data; case convention (pedagogical assumption, not attributed to IFRS 2): 10 % of the employees leave the entity before vesting and the best estimate of the departure is unchanged at the closing date; the expense of one year is the elapsed share of the vesting period applied to the expected total cost; the entry is illustrative.

Share-based award: settlement method, grant date, classification of the conditions and settlement alternative: Bonus B linked to the share price

Share-linked plans: settlement method, grant date and first expense

6 documents7 sections to document
0 / 4 sections completed
Guided mode

Section 1 of 7

Objective

In progress
Section brief
What to document
The engagement, its scope and the working mode chosen.
Why
A workpaper answers one precise question: framing it avoids off-topic work.
How
Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
Expected result
You know which question the workpaper must settle, and for which reporting date.
Your role
Preparer of the IFRS 2 workpaper
Level
Foundation
Estimated time
≈ 60 min
Progress
0 / 3 steps done (review excluded)

Context

Daveline SA (fictitious entity) closes its accounts on 31 December 20X6. It set up two remuneration arrangements in 20X6: a share option plan for its employees (plan A) and a cash bonus linked to the price of its share for executives (bonus B). You prepare the classification note and the first entry of plan A.

Assignment

Classification of the Daveline arrangements: settlement method, grant date and conditions

Purpose of the workpaper

Record the terms of the award, the approvals and the dates, the conditions of the plan and, where the entity or the counterparty can choose the settlement method, the settlement practice of the entity. Classify the settlement method, fix the grant date, classify each condition (service, non-market performance, market, non-vesting) and, for a settlement alternative at the choice of the entity, assess whether it has a present obligation to settle in cash. The terms, the dates and the amounts are case data; each classification remains a supported judgment.

Questions of the file covered by this workpaper

  • Classify the settlement method of plan A and of bonus B.
  • Determine the grant date of plan A.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template