Share‐Based Payment

A major objective of the accounting for shareholders' equity is the adequate disclosure of the sources from which the capital was derived. The concept of share‐based payments is broad and includes not only employee share options, but also share appreciation rights, employee share ownership plans, employee share purchase plans, share option plans and other share arrangements. The accounting approach for the share‐based payment depends on whether the transaction is settled by the issuance of equity instruments, cash or equity and cash. Modification to vesting conditions is only considered if it is beneficial to the employers. For cash‐settled share‐based payment transactions, an entity is required to measure the goods or services acquired and the liability incurred at the fair value of the liability. An entity should disclose information enabling users of the financial statements to understand the nature and extent of share‐based payment transactions that occurred during the period.