Employee share options

Learning objectives

• Explain why the assumed proceeds of employee share options include the fair value, measured in accordance with IFRS 2, of the services still to be received.L4

Normative references

• IAS 33 §47AFor share options and other share-based payment arrangements to which IFRS 2 applies, the issue price and the exercise price used in the diluted calculation include the fair value (measured in accordance with IFRS 2) of any goods or services to be supplied to the entity in the future under the arrangement.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Fontenay SA has granted share options to its employees, accounted for under IFRS 2. What does the assumed proceeds of exercise of these options comprise in the treasury stock method for diluted earnings?L4