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IFRS 2: Share Based Payments
11-04-2011, 09:45 PM
Post: #1
IFRS 2: Share Based Payments
I would appreciate some technical advise on this matter.
Supposing an entity has a share based payment scheme where

1. the employees that are of a particular grade (Manager) can join the scheme by taking up their allotted shares at the NBV of the shares
2. after this, the employee must spend 5 years in the bank and 3 years in the scheme in order to qualify for "market". Simply means at that time, the employee could choose to sell the shares at the market value to the scheme.

During the vesting period in the scheme, the employee enjoys dividend payments, bonuses etc.

Upon fulfilment of these conditions, the employee can sell the shares at market price back to the scheme or
if the employee decided to leave the company, He/She has to sell to the scheme (i.e. no employee can leave wt the entity's shares)

My questions

a)Is this a cash settled share based payment
b)How should this be accounted for in the books of the entity(standalone) and consolidated
c)How is the liability measured
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