2016 amendment: from cash-settled to equity-settled

Learning objectives

• Account for the modification of a cash-settled award into an equity-settled award, with the difference recognised in profit or loss.L3, L4

Normative references

The syntheses of the reference register are written in French: only the paragraph reference is shown here.

1 question

• 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 {liability_derecognised} and the fair value of the modified award at that date, to the extent of services received, is {equity_recognised} (case data). The 2016 amendment applies to annual periods beginning on or after 1 January 2018. Record the modification entry.L4