CERTYNEX IFRS ACADEMY

Mère SA grants options over Mère's shares to employees of its subsidiary Fille SA, which Mère will deliver itself. Fille receives the services of those employees, with no obligation to deliver securities or to pay (case facts). How does Fille treat the award in its separate financial statements?

It assesses the nature of the award and its own rights and obligations; the amount recognised may differ from that of the consolidated group.

It takes over the classification and amount used in the group's consolidated financial statements, with no assessment of its own.

It recognises nothing, the award being a matter for the parent and not for the subsidiary that receives the services, since the group forms a single economic entity.

It follows the settlement method used by the parent in its own accounts, without examining its own obligations.