CERTYNEX IFRS ACADEMY

An analyst writes: "The employees' services started on 1 January, but the plan was only approved on 15 February; there is therefore nothing to recognise for January and February, because fair value is only defined at the grant date." What is the error in this reasoning?

He uses the approval date, whereas the grant date is the date the plan is communicated to the employees.

He counts services received since 1 January, whereas services are received from the grant date onwards, which delays recognition of everything before that date.

He forgets that, when services start before the grant date, the fair value at that date is estimated for the earlier service period.

He makes the start of the services the grant date, whereas the grant date is the approval date.