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

SHARE- BASED PAYMENTS ACCOUNTING
Illustration 1 - No Vesting Period
Illustration 2 - With Vesting Period
Total Compensation or Fair value of share options
100,000 shares x P15 1,500,000
Annual compensation (1,500,000/2) 750,000
2021
Dec-31 Salaries - share options 750,000
Share options outstanding
2022
Dec-31 Salaries - share options 750,000
Share options outstanding
2023
Dec-31 Cash 6,000,000
Share options outstanding 1,500,000
Ordinary share capital
Share Premium
Illustration 3 - Some Employees left
By December 31, 2022 28 employees have left and the entity expects tha
On January 1, 2021, share options are ranted to employees to purchase 1
per share. On this date, the fair value of each share option is P20. The op
employees exercised all their share options on December 31, 2021.
On January 1, 2021, share options are ranted to employees to purchase 1
per share. On this date, the fair value of each share option is P15. The offi
completing two years of service. The options can be exercised starting Jan
options are exercised on December 31, 2023.
On January 1, 2021, an entity granted 100 shares option each to 500 emp
share options vest at the end of a three-year period. On grant date, each
By December 31, 2021, 30 employees have left and it is expected that on
further 30 employees will leave during the vesting period.
By December 31, 2023, 22 employees have left and therefore, 420 emplo
2023.

Year Calculation
2021 (500-30-30) x 100 shares x P30 x 1/3 440,000
2022 394,000
2023 (420 x 100 shares x P30) - P834,000 426,000
Illustration 4 - With Condition and Share Options Vary
Computation of Compensation Expense:
Year Calculation
2021 300 x 200 shares x P20 x 1/3 400,000
2022 (300 x 300 shares x P20 x 2/3) - 400,000
800,000
2023 [(300-20) x 300 shares x P20] - 1,200,000 480,000
Compensation
expense for the
Period
[(500-30-28-25) x 100 shares x P30 x
2/3] - P440,000
On January 1, 2021, an entity granted share options to each of its 300 em
department. The share options vest at the end of a three-year period prov
entity's employ and provided the volume of sales will increase by an aver
each share option on grant date is P20.