Helia SA has granted cash-settled share appreciation rights, with a four-year service condition. At the end of year three, the fair value of all the rights granted, measured at that date and ignoring the service condition, is 500,000 (case data). The entity expects 80 % of the rights to vest; case convention: the elapsed share of the vesting period is 75 %. The 2016 amendment applies to annual periods beginning on or after 1 January 2018. Compute the fair value of the rights expected to vest, then the liability at the closing date.
- Fair value of all the rights granted, at the closing date (case data)
- 500,000
- Share of the rights expected to vest
- 80 %
- Elapsed share of the vesting period (case convention)
- 75 %