Question · The present obligation test for cash settlement

Zéphyr SA's plan provides that the company chooses, at vesting, to deliver shares or to pay an equivalent amount in cash, with no link to a target price. Over the last three years, Zéphyr has settled each plan in cash and has told its employees it will continue to do so (case facts). Write an assessment note on whether a present obligation to settle in cash exists and on the classification of the award.