CERTYNEX IFRS ACADEMY

An option plan has a three-year service condition. At the end of year two, the entity revises downwards, because of more departures than expected, the number of options it expects to vest. How does it treat this revision?

It applies the new number to the periods to come and leaves the expense already recognised unchanged.

It recomputes the cumulative expense with the revised expected number and recognises the difference in profit or loss.

It treats the revision as a modification of the plan and measures a benefit at the revision date.

It reverses in profit or loss all the expense already recognised, the service condition no longer being met for the plan.