Looking at group share-bases payment scheme - cash-settled. The company is creating new growth shares to issue to employees that will vest over 5yr with the employee entitled to cash-payout over a hurdle amount.
1. the company creates a new share class - what are the accounting entries for being this class of share one books?
2. On day 1 on plan employee is given a growth share for no subscription cost.
- I understand this would mean an IFRS 2 expense then starts building over vesting period. Ie. Expense and cr liability (cash payout). But how do you account for the fact the share belongs to the employee?