AC2101 S1 2014 Seminar 21 Expenses (Anil).pptx

28 14 161013 frs 102 measurement in other words

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Unformatted text preview:   Apply any option pricing model to measure fair value of equity instrument at measurement date/grant date, taking into account the following: 1.  Exercise price of the option 2.  Current price of underlying shares 3.  Life of the option 4.  Expected volatility of share price 5.  Dividend expected 6.  Risk- free interest rate 24 12 16/10/13 FRS 102 - Measurement For employee share option: §༊  Examples of option models §༊  Black- Scholes model §༊  Binomial model You do not need to know how to compute. The FV will be given to you §༊  Note that a grant of ESOs might be conditional upon the employee satisfying specified vesting conditions and/or non- vesting conditions. 25 FRS 102 - Measurement *  FRS 102 para 21 only requires market conditions (a vesting condition) to be taken into account when determining fair value of equity instruments granted. *  In the 2008 Amendments to FRS 102, F...
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This document was uploaded on 02/10/2014.

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