Illustrative examples - Share-based payment arrangements

IFRS Accounting Taxonomy 2022 – 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

The Foundation has trade marks registered around the world (Marks) including ‘IAS®’, ‘IASB®’, the IASB® logo, ‘IFRIC®’, ‘IFRS®’, the IFRS® logo, ‘IFRS for SMEs®’, the IFRS for SMEs® logo, ‘International Accounting Standards®’, ‘International Financial Reporting Standards®’, the ‘Hexagon Device’, ‘NIIF®’ and ‘SIC®’. Further details of the Foundation’s Marks are available from the Foundation on request.

XBRL attributes