Ons is vandag hier as gevolg van
DIE LIEFDE WAT VOOR
ONS GEKOM HET
1993
HANLU & YOLANDÉ
Ontmoet in Saldanhabaai. Yolandé het as
FINANCIAL
ontvangs by Hoedjiesbaai Hotel gewerk en
Hanlu was ‘n polisieman. Gereelde besoeke
aan die hotel en polisiestasie (nie
werksverwant) was die begin van ’n besondere
ACCOUNTING
en lewenslange liefdesverhaal.
CHRIS & ERICA
1993
Beide het regte aan Kovsies geswot. Chris
was ‘n beter student as Erica (wat sy ontken),
771
maar het tog sy notas in haar posbus voor
belangrike toetse gelos. Albei het hokkie vir
die Universiteit gespeel en die res is
geskiedenis.
HENCO SE OUERS
IFRS NOTES INGE SE OUERS
1965
ISAK & ELIZE
Ontmoet aan die Weskus in die Dwarskerbos
omgewing waar beide families woonagtig was.
Hanlu het in oupa se voetspore gevolg en ook
‘n polisieman geword terwyl ouma ‘n
tuisteskepper was. Jong verliefdes wat ‘n lang
pad saam geloop het. 1957
HANNES & ANNETTE
Beide het BA met Latyn en Engels aan die
UVS studeer en het mekaar in die klas
ontmoet. Oupa Hannes het vir ouma Annette
met haar Latyn huiswerk gehelp, klaarblyklik
omdat dit vir haar te moeilik was (al was sy
slim en nogal mooi ook)
HANLU SE OUERS CHRIS SE OUERS
1967
COENRAAD & ELIZABETH
Ontmoet by ‘n boere opskop en raak
halsoorkop verlief. Die liefde is nie altyd so
geduldig nie en hulle trou pas nadat hulle
skool voltooi. Ouma was ‘n boekhoudster en
oupa ‘n grafsteenmaker. Vrolik en lief vir
dans.
1957
GIEL & MARA
Ontmoet in Bloemfontein. Oupa Giel was ‘n
gesondheids inspekteur en ouma Mara ‘n
debiteure klerk. Hulle vestig in Windhoek en
was Suidwesters in murg en been. Lief vir
bier en biltong, soos hulle kinders.
YOLANDÉ SE OUERS ERICA SE OUERS
,
, IFRS 2: SHARE-BASED PAYMENTS
Classification
Company receives goods and services
Settle by:
• way of shares / share options à equity settled
• incurring liability based on price of equity instrument à cash settled
• choice settled
Definition
include all payments for which goods and services are rendered to the entity
and the payment made by the entity for the goods and services are either in the form of:
- shares / equity instruments of the entity
- or in the form of cash (based on the value of the shares / equity instruments).
Included:
Share options to à because they receive remuneration for services rendered to the entity
employees
Share options to Non- à they are also considered as employees in accordance with the definition of
executive directors “employees and other parties providing similar services” in IFRS 2.
Acquisition of the asset à form of an equity-settled share-based payment
is settled by using
shares
EXCLUDED
exclude transactions with an employee in his capacity as a holder of an equity instrument – this would include rights issues, dividends etc.
SPECIFIC:
Purchase of shares at fair share buy-back and should have no effect on the income statement.
value
If the price was above the excess would be a share-based payment to employees
fair value and recognised in the income statement when the related service was
rendered
Recognition & Measurement
• Recognise goods & service as received
If employee: as employee renders service
If non-employee: when goods/services received (goods immediate, services as rendered)
• If goods/services do not qualify as asset, then treat as expense
Employees
Indirect approach
Easier to determine fair value
DR – Expense / Asset same as credit
CR – Shares / Share Options Reserve First go for fair value of equity instrument
NOT Employees
Directly measure that debit – direct approach
DR – Expense / Asset Fair value of goods and services (IFRS 13)
CR – Shares / Share Options Reserve same as debit
, Equity-Settled
• Amount should be measured directly (as FV of goods & services received) if known
• If direct method cannot be used (FV of goods & services not known) then measure indirectly, at FV of equity instruments granted
For transactions with employees For transactions with non-employees
(a) use indirect method (a) presumption that can be measured directly, unless proven otherwise
(b) measure FV of equity granted on grant date (b) measure FV of goods & services/equity at date goods & services received
CREDIT
!
= fair value of option or share x number of options or shares x number of people expected form part x period
"
Less already recognised
Expected people à at end of life when vests
Period x/y = duration
This credit is based on conditions
Equity settled share based payment
DR – Employee benefit cost (P/L) xxx
CR – Equity xxx
Non-identifiable goods and services
• If the identifiable consideration received (goods & services) (if any) appears to be less than the FV of equity instruments granted or liability incurred, then this
typically indicates that other unidentifiable goods/services have/will be received
• This unidentifiable goods/services shall be measured as the difference between the FV of equity instruments granted / liability incurred and the identifiable
goods/services (all measured at grant date) – also see FRG 2 & example 1 in IFRS 2
Transactions in which services are received
• If SBP vests immediately (i.e. no period of service is required before counterparty becomes unconditionally entitled to it), then recognise in full immediately.
• If period of service is required, then SBP vests over vesting period. Account as it vests, over the vesting period
• Fixed vesting period? = over that period
• Variable vesting period? = over expected/most likely vesting period
• NB If vesting period varies in relation to a market condition, base expected vesting period on assumptions taken into account in determining FV of equity
instruments, and do not change estimated vesting period (example 6)
• NNB If vesting period varies in relation to a non-market condition, revise expected vesting period and adjust for changes in it (example 2)
Equity-settled:
• Measure FV of equity instruments on measurement date
- If employee: On grant date
- If not employee: On date goods & services are rendered (only if cannot reliably measure FV of goods & services)
• Usually use current FV (on JSE) of share as starting point (share options – use option pricing model such as Black Scholes): take into account terms & conditions
on which granted (eg restrictions on sale thereof)
• Adjust FV for all non-vesting conditions and market vesting conditions (take into account in FV valuation model)
INPUTS OF FV OF EQUITY INSTRUMENTS
SHARES
FV of shares (JSE/valuation) adjusted for all terms/characteristics of the shares (take into account, for example dividend restrictions, transfer restrictions – makes FV of
shares less) and conditions except non-market vesting conditions
OPTIONS [AWARENESS]
Market prices (but these are mostly not available) OR
Use option pricing model – take the following into account:
Exercise price
Life of option
Current price of underlying shares
Expected volatility of share price
Dividends expected
Risk-free interest rate
Effect of any non-vesting conditions and market vesting conditions
DIE LIEFDE WAT VOOR
ONS GEKOM HET
1993
HANLU & YOLANDÉ
Ontmoet in Saldanhabaai. Yolandé het as
FINANCIAL
ontvangs by Hoedjiesbaai Hotel gewerk en
Hanlu was ‘n polisieman. Gereelde besoeke
aan die hotel en polisiestasie (nie
werksverwant) was die begin van ’n besondere
ACCOUNTING
en lewenslange liefdesverhaal.
CHRIS & ERICA
1993
Beide het regte aan Kovsies geswot. Chris
was ‘n beter student as Erica (wat sy ontken),
771
maar het tog sy notas in haar posbus voor
belangrike toetse gelos. Albei het hokkie vir
die Universiteit gespeel en die res is
geskiedenis.
HENCO SE OUERS
IFRS NOTES INGE SE OUERS
1965
ISAK & ELIZE
Ontmoet aan die Weskus in die Dwarskerbos
omgewing waar beide families woonagtig was.
Hanlu het in oupa se voetspore gevolg en ook
‘n polisieman geword terwyl ouma ‘n
tuisteskepper was. Jong verliefdes wat ‘n lang
pad saam geloop het. 1957
HANNES & ANNETTE
Beide het BA met Latyn en Engels aan die
UVS studeer en het mekaar in die klas
ontmoet. Oupa Hannes het vir ouma Annette
met haar Latyn huiswerk gehelp, klaarblyklik
omdat dit vir haar te moeilik was (al was sy
slim en nogal mooi ook)
HANLU SE OUERS CHRIS SE OUERS
1967
COENRAAD & ELIZABETH
Ontmoet by ‘n boere opskop en raak
halsoorkop verlief. Die liefde is nie altyd so
geduldig nie en hulle trou pas nadat hulle
skool voltooi. Ouma was ‘n boekhoudster en
oupa ‘n grafsteenmaker. Vrolik en lief vir
dans.
1957
GIEL & MARA
Ontmoet in Bloemfontein. Oupa Giel was ‘n
gesondheids inspekteur en ouma Mara ‘n
debiteure klerk. Hulle vestig in Windhoek en
was Suidwesters in murg en been. Lief vir
bier en biltong, soos hulle kinders.
YOLANDÉ SE OUERS ERICA SE OUERS
,
, IFRS 2: SHARE-BASED PAYMENTS
Classification
Company receives goods and services
Settle by:
• way of shares / share options à equity settled
• incurring liability based on price of equity instrument à cash settled
• choice settled
Definition
include all payments for which goods and services are rendered to the entity
and the payment made by the entity for the goods and services are either in the form of:
- shares / equity instruments of the entity
- or in the form of cash (based on the value of the shares / equity instruments).
Included:
Share options to à because they receive remuneration for services rendered to the entity
employees
Share options to Non- à they are also considered as employees in accordance with the definition of
executive directors “employees and other parties providing similar services” in IFRS 2.
Acquisition of the asset à form of an equity-settled share-based payment
is settled by using
shares
EXCLUDED
exclude transactions with an employee in his capacity as a holder of an equity instrument – this would include rights issues, dividends etc.
SPECIFIC:
Purchase of shares at fair share buy-back and should have no effect on the income statement.
value
If the price was above the excess would be a share-based payment to employees
fair value and recognised in the income statement when the related service was
rendered
Recognition & Measurement
• Recognise goods & service as received
If employee: as employee renders service
If non-employee: when goods/services received (goods immediate, services as rendered)
• If goods/services do not qualify as asset, then treat as expense
Employees
Indirect approach
Easier to determine fair value
DR – Expense / Asset same as credit
CR – Shares / Share Options Reserve First go for fair value of equity instrument
NOT Employees
Directly measure that debit – direct approach
DR – Expense / Asset Fair value of goods and services (IFRS 13)
CR – Shares / Share Options Reserve same as debit
, Equity-Settled
• Amount should be measured directly (as FV of goods & services received) if known
• If direct method cannot be used (FV of goods & services not known) then measure indirectly, at FV of equity instruments granted
For transactions with employees For transactions with non-employees
(a) use indirect method (a) presumption that can be measured directly, unless proven otherwise
(b) measure FV of equity granted on grant date (b) measure FV of goods & services/equity at date goods & services received
CREDIT
!
= fair value of option or share x number of options or shares x number of people expected form part x period
"
Less already recognised
Expected people à at end of life when vests
Period x/y = duration
This credit is based on conditions
Equity settled share based payment
DR – Employee benefit cost (P/L) xxx
CR – Equity xxx
Non-identifiable goods and services
• If the identifiable consideration received (goods & services) (if any) appears to be less than the FV of equity instruments granted or liability incurred, then this
typically indicates that other unidentifiable goods/services have/will be received
• This unidentifiable goods/services shall be measured as the difference between the FV of equity instruments granted / liability incurred and the identifiable
goods/services (all measured at grant date) – also see FRG 2 & example 1 in IFRS 2
Transactions in which services are received
• If SBP vests immediately (i.e. no period of service is required before counterparty becomes unconditionally entitled to it), then recognise in full immediately.
• If period of service is required, then SBP vests over vesting period. Account as it vests, over the vesting period
• Fixed vesting period? = over that period
• Variable vesting period? = over expected/most likely vesting period
• NB If vesting period varies in relation to a market condition, base expected vesting period on assumptions taken into account in determining FV of equity
instruments, and do not change estimated vesting period (example 6)
• NNB If vesting period varies in relation to a non-market condition, revise expected vesting period and adjust for changes in it (example 2)
Equity-settled:
• Measure FV of equity instruments on measurement date
- If employee: On grant date
- If not employee: On date goods & services are rendered (only if cannot reliably measure FV of goods & services)
• Usually use current FV (on JSE) of share as starting point (share options – use option pricing model such as Black Scholes): take into account terms & conditions
on which granted (eg restrictions on sale thereof)
• Adjust FV for all non-vesting conditions and market vesting conditions (take into account in FV valuation model)
INPUTS OF FV OF EQUITY INSTRUMENTS
SHARES
FV of shares (JSE/valuation) adjusted for all terms/characteristics of the shares (take into account, for example dividend restrictions, transfer restrictions – makes FV of
shares less) and conditions except non-market vesting conditions
OPTIONS [AWARENESS]
Market prices (but these are mostly not available) OR
Use option pricing model – take the following into account:
Exercise price
Life of option
Current price of underlying shares
Expected volatility of share price
Dividends expected
Risk-free interest rate
Effect of any non-vesting conditions and market vesting conditions
