CERTYNEX IFRS ACADEMY

Options granted to employees vest only after three years of service. How does the entity account for the services received?

In full at the grant date, because the fair value of the options is fixed on that date and the grant is final.

As they are rendered during the vesting period, with a corresponding increase in equity.

In full at the end of the three years, when the vesting conditions are finally met, with no spreading over the earlier years.

Over the contractual life of the options, including after the rights have vested for the employees concerned.