Verano SA modifies a cash-settled share appreciation rights plan into an equity-settled option plan. At the modification date, the liability of the original award is 300,000 and the fair value of the modified award at that date, to the extent of services received, is 240,000 (case data). The 2016 amendment applies to annual periods beginning on or after 1 January 2018. Record the modification entry.
- Liability derecognised at the modification date
- 300,000
- Amount recognised in equity (fair value at the modification date, to the extent of services received)
- 240,000