Ads by Google

Friday, June 17, 2016

Accounting for Share-Based Payment

Photo owned by www.ifrsbox.com


Definition

A share-based payment is a transaction in which the entity receives or acquires goods or services either as consideration for its equity instruments or by incurring liabilities for amounts based on the price of the entity's shares or other equity instruments of the entity.

Types of share-based payment transactions

(a) equity-settled share-based payment transactions, in which the entity receives goods or services as consideration for equity instruments of the entity (including shares or share options)
(b) cash-settled share-based payment transactions, in which the entity acquires goods or services by incurring liabilities to the supplier of those goods or services for amounts that are based on the price (or value) of the entity's shares or other equity instruments of the entity, and
(c) cash or equity settled share-based payment transactions, in which the entity receives or acquires goods or services and the terms of the arrangement provide either the entity or the supplier of those goods or services with a choice of whether the entity settles the transactions in cash (or other assets) or by issuing equity instruments.

Recognition and Measurement

The issuance of shares or rights to shares requires an increase in a component of equity. PFRS 2 requires the offsetting debit entry to be expensed when the payment for goods or services are consumed. For example, the issuance of shares or rights to shares to purchase inventory would be presented as an increase in inventory and would be expensed only once the inventory is sold or impaired.

The issuance of fully-vested shares, or rights to shares, is presumed to relate to past service, requiring the full amount of the grant date fair value to be expensed immediately. The issuance of shares to employees with, say, a three-year vesting period is considered to relate to services over the vesting period. Therefore, the fair value of the share-based payment, determined at the grant date, should be expensed over the vesting period.

As a general principle, the total expense related to equity-settled share-based payments will equal the multiple of the total instruments that vest and the grant-date fair value of those instruments. In short, there is truing up to reflect what happens during the vesting period. However, if the equity-settled share-based payment has a market related performance feature, the expense would still be recognized if all other vesting features are met.

Monday, June 13, 2016

UK-based start-up Company Bank4You enters the Philippines


A new player in the financial services industry enters the Philippine market – it is the UK-based start-up Bank4You. The company was recently established in London on the year 2014. Though B4U is a new player in the financial services sector, it has already proved itself as the innovative and ambitious company through its various activities and developments. B4U takes part, on an ongoing basis, in various European exhibitions and conferences dedicated to the digital banking and other financial solutions. To highlight, B4U TaxFree solution won the award at the upscale fintech conference, "FinNext".

Bank4You has prepared for the Philippine market, a specialized solution for the students, called B4U Student Card. This product is a prepaid VISA card, issued by the “Royal Bank of Scotland”, with special rates and fees, and unique conditions of obtaining a card. The B4U card can be ordered online within only 3 minutes, and you will get it within 10 days upon completing payment. You don’t have to be a UK citizen, and this fact makes it very interesting for the students from Philippines, who plan on getting education in Europe.

According to Adam Lane, CEO of the B4U Card Solution (start-up), the Company is reliant on the Southeast Asian market, and the Philippines in particular. As Mr. Lane remarked: “Youth at the Philippines is notable for its ambitions and sense of purpose, and the Bank4You solutions are developed for exactly such people.”

Copyright @philcpareview
Related Posts Plugin for WordPress, Blogger...