# Share-based-payments-Illustrations.xlsx - SHARE- BASED...

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SHARE- BASED PAYMENTS ACCOUNTINGIllustration 1 - No Vesting PeriodIllustration 2 - With Vesting PeriodTotal Compensation or Fair value of share options100,000 shares x P151,500,000Annual compensation (1,500,000/2)750,0002021Dec-31Salaries - share options750,000Share options outstanding2022Dec-31Salaries - share options750,000Share options outstanding2023Dec-31Cash6,000,000Share options outstanding1,500,000Ordinary share capitalShare PremiumIllustration 3 - Some Employees leftBy December 31, 2022 28 employees have left and the entity expects thaOn January 1, 2021, share options are ranted to employees to purchase 1per share. On this date, the fair value of each share option is P20. The opemployees exercised all their share options on December 31, 2021.On January 1, 2021, share options are ranted to employees to purchase 1per share. On this date, the fair value of each share option is P15. The officompleting two years of service. The options can be exercised starting Janoptions are exercised on December 31, 2023.On January 1, 2021, an entity granted 100 shares option each to 500 empshare options vest at the end of a three-year period. On grant date, eachBy December 31, 2021, 30 employees have left and it is expected that onfurther 30 employees will leave during the vesting period.By December 31, 2023, 22 employees have left and therefore, 420 emplo2023.
YearCalculation2021(500-30-30) x 100 shares x P30 x 1/3440,0002022394,0002023(420 x 100 shares x P30) - P834,000426,000Illustration 4 - With Condition and Share Options VaryComputation of Compensation Expense:YearCalculation2021300 x 200 shares x P20 x 1/3400,0002022(300 x 300 shares x P20 x 2/3) - 400,000800,0002023[(300-20) x 300 shares x P20] - 1,200,000480,000Compensationexpense for thePeriod[(500-30-28-25) x 100 shares x P30 x2/3] - P440,000On January 1, 2021, an entity granted share options to each of its 300 emdepartment. The share options vest at the end of a three-year period proventity's employ and provided the volume of sales will increase by an avereach share option on grant date is P20.

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Term
Fall
Professor
Maxine
Tags
senior executive, eriod, Compensatio