tailieunhanh - Lecture Intermediate accounting: IFRS edition - Chapter 19: Share-based compensation and earnings per share

In this chapter we look at some common forms of compensation in which the amount of the compensation employees receive is tied to the market price of company share. We will see that these share-based compensation plans – share awards, share options, and share appreciation rights – create shareholders’ equity. The nature of this compensation will impact the way we calculate earnings per share, the topic of the second part of this chapter. | SHARE-BASED COMPENSATION AND EARNINGS PER SHARE Chapter 19 © 2013 The McGraw-Hill Companies, Inc. Chapter 19: Share-Based Compensation and Earnings Per Share. In this chapter we look at some common forms of compensation in which the amount of the compensation employees receive is tied to the market price of company share. We will see that these share-based compensation plans – share awards, share options, and share appreciation rights – create shareholders’ equity. The nature of this compensation will impact the way we calculate earnings per share, the topic of the second part of this chapter. Share-Based Compensation Compensation: Salary Share awards Share Award Plans Restricted share plans Usually tied to continuing employment, Compensation is market price at date of grant, Compensation expense accrued over service period. Typically, an executive compensation plan is tied to performance in a strategy that uses compensation to motivate it recipients. Restricted share plans usually are tied to continued employment of the person receiving the award. The compensation associated with a share of restricted share (or nonvested share) is the market price at the grant date of an unrestricted share of the same share. The amount is accrued as compensation expense over the service period for which participants receive the shares. The restrictions in restricted shares are called “vesting conditions”. Share Option Plans Share option plans give employees the option to buy a specified number of shares of the firm's share, at a specified exercise price, during a specified period of time. The fair value is accrued as compensation expense over the service period for which participants receive the options, usually from the date of grant to when the options become exercisable (the vesting date). Share option plans give employees the option to buy (a) a specified number of shares of the firm's share, (b) at a specified exercise price, (c) during a specified period of time. The . | SHARE-BASED COMPENSATION AND EARNINGS PER SHARE Chapter 19 © 2013 The McGraw-Hill Companies, Inc. Chapter 19: Share-Based Compensation and Earnings Per Share. In this chapter we look at some common forms of compensation in which the amount of the compensation employees receive is tied to the market price of company share. We will see that these share-based compensation plans – share awards, share options, and share appreciation rights – create shareholders’ equity. The nature of this compensation will impact the way we calculate earnings per share, the topic of the second part of this chapter. Share-Based Compensation Compensation: Salary Share awards Share Award Plans Restricted share plans Usually tied to continuing employment, Compensation is market price at date of grant, Compensation expense accrued over service period. Typically, an executive compensation plan is tied to performance in a strategy that uses compensation to motivate it recipients. Restricted share plans usually .