SHARE-BASED

COMPENSATION
(Share Rights & Share Appreciation Rights)
 )
SHARE OPTIONS SHARE APPRECIATION RIGHTS

# of Employees

Employees who left

-Employeesexpectedtolea#
Total Employees entitled for the Benefit

xShare0ptionsperEmpk
Total share options share Appreciation Rights unexercised

x FV @ Date of Grant / IV x FV @ End of Reporting Period

- -

Total Value of the compensation Total Liability

÷÷÷÷÷÷÷÷i:e÷÷÷ :

i:÷÷÷÷i÷÷:÷÷
÷÷÷÷÷÷÷÷÷÷÷ . ..
SHARE OPTIONS determined
'

FV of options can 't be

↳
↳
Equity settled
-

Share -

Based payment Transactions during the vesting period

Intrinsic Value Method
-

use

of so @ Date of
-

FV Grant Market Price of share

ios -

option Price
Recognized Expense the vesting 1 Service Period
-

as over ;
-

Intrinsic value 1 SO
full amount if immediately vesting
↳
JE : Expense xx after the vesting period → exercise period
SOO XX
compensation Expense Increase in Market price
'
=

↳ share ↳
Upon exercising options expense in full

cash share options exercised

-

JE : xx until are

SOO xx
To get SP IV ( Op SP )
-
-
use t IV -
par =

share capital xx

SP XX

€7: I, FV of SO / V of SO

ioqs Option Price .

JE : soo xx
t FV of Share Option Gain on Reversal of SO xx
-

Total consideration
-
par Value of Shares
stock Compensation plan
-

share Premium
FV of shares Issued
contribution from Employees
ios
-

compensation Expense for the year

÷ ÷ ÷ :÷ :÷ :÷ :÷:÷÷÷÷÷÷÷::÷::
↳
cumulative amount -

Liability

↳
Acceleration of Vesting

recognize immediately the compensation Expense

-

that otherwise would have been recognized for

the remainder of the vesting period

↳
Cancellation or Settlement of the grant

Any payment made to employees repurchase

'
→

of equity instrument

Excess of Payment
-

FV of SO Expense
→
over

JE : SOO XX

Expense xx

cash xx

cash Payment
ios cummutative compensation Expense
-

compensation Expense for the year

 µ÷ ÷ : ÷ i
SHARE APPRECIATION RIGHTS SHARE 8 CASH ALTERNATIVE

↳ ↳
cash -

settled Share Based -

payment Transactions originally equity settled w/ cash alternative

liability counterparty has Right of choice

' -

a a

Remeasured ↳
Employee
-

Liability
a .

every reporting date

. CFI
,

↳
b
. until the settlement date Equity component

'

Measurement ↳
CFI ( compound Financial Instrument )

.
Unexercised :
FV of SAR
FV of share Alternative ( CFI )

Exercised Intrinsic Value of share ios -FVofDebtCompone#

•
:

Value of Equity component

Market price of share 1 Quoted Price
€¥ .

↳
Non Employee
-PredeterminedPr
-

FV of SAR
FV of Goods / Service Received
iQ: -FVofLiability@Recei
Not yet Exercised FV
-

iQ: compensation Expense

→
Equity component
↳
Exercised -
IV

Equity component equally allocated over the VP

'

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" """ "

↳
Cancellation or Settlement of the grant no commercial substance
:÷i÷÷i÷:i÷:÷:
cash Payment
.

has past practice or stated policy of settling in cash

iQ cummutative compensation Expense

-

:
-
-

generally settles in cash whenever counterparty asks

compensation Expense for the year
for cash settlement

'

Is there a present obligation to settle in cash ?

↳
v : cash settled share based
- -

compensation

↳
x :
equity settled share based compensation
- -

Final Accounting
=

depends method of settlement

-

on

↳
Equity Alternative

JE : Liab xx

Equity xx

share capital xx

SP xx

↳ Cash Alternative

JE : Liab xx

Equity xx

Int Exp xx

cash xx
xx
sp

iQ: T FV liab =
Interest Expense