IFRS Foundation
Example7 2005-12-31 Example7 2005-01-01 2005-12-31 Example7 2004-01-01 2004-12-31 Example7 2005-01-01 2005-12-31 example7:SeniorManagementShareOptionPlanMember Example7 2005-01-01 2005-12-31 example7:GeneralEmployeeShareOptionPlanMember Example7 2005-01-01 2005-12-31 example7:ExecutiveSharePlanMember Example7 2005-01-01 2005-12-31 example7:SeniorManagementShareAppreciationCashPlanMember Example7 2005-12-31 example7:GeneralEmployeeShareOptionPlanMember Example7 2005-12-31 example7:ExecutiveSharePlanMember Example7 2004-12-31 Example7 2003-12-31 iso4217:EUR xbrli:pure

IFRS Taxonomy 2012 – Illustrative examples

Share-based payment arrangements

Examples from IFRS 2 (IG23) representing some of the disclosures required by IFRS 2 for share-based payment arrangements using block and detailed XBRL tagging.

IG23            

Share-based Payment

During the period ended 31 December 20X5, the Company had four share-based payment arrangements, which are described below.

Type of arrangement

Senior management share option plan

General employee share option plan

Executive share plan

Senior management share appreciation cash plan

Date of grant

1 January 2004

1 January 2005

1 January 2005

1 July 2005

Number granted

50,000

75,000

50,000

25,000

Contractual life

10 years

10 years

N/A

10 years

Vesting conditions

1.5 years’ service and achievement of a share price target, which was achieved.

Three years’ service.

Three years’ service and achievement of a target growth in earnings per share.

Three years’ service and achievement of a target increase in market share.

The estimated fair value of each share option granted in the general employee share option plan is CU 23.60.  This was calculated by applying a binomial option pricing model.  The model inputs were the share price at grant date of CU 50, exercise price of CU 50, expected volatility of 30 per cent, no expected dividends, contractual life of 10 years, and a risk-free interest rate of 5 per cent. To allow for the effects of early exercise, it was assumed that the employees would exercise the options after vesting date when the share price was twice the exercise price.  Historical volatility was 40 per cent, which includes the early years of the Company’s life; the Company expects the volatility of its share price to reduce as it matures.

The estimated fair value of each share granted in the executive share plan is CU 50.00, which is equal to the share price at the date of grant.

Further details of the two share option plans are as follows:

20X4

20X5

Number of options

Weighted average exercise price

Number of options

Weighted average exercise price

Outstanding at start of year

0

45,000

CU 40

Granted

50,000

CU 40

75,000

CU 50

Forfeited

( 5,000)

CU 40

( 8,000)

CU 46

Exercised

0

( 4,000)

CU 40

Outstanding at end of year

45,000

CU 40

108,000

CU 46

Exercisable at end of year

0

CU 40

38,000

CU 40

The weighted average share price at the date of exercise for share options exercised during the period was CU 52.  The options outstanding at 31 December 20X5 had an exercise price of CU 40 or CU 50, and a weighted average remaining contractual life of 8.64 years.

20X4

20X5

CU

CU

Expense arising from share-based payment transactions

495,000

1,105,867

Expense arising from share and share option plans

495,000

1,007,000

Closing balance of liability for cash share appreciation plan

98,867

Expense arising from increase in fair value of liability for cash share appreciation plan

9,200


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