EBTs in separate financial statements of sponsoring entity An entity lends its EBT €1 million which the EBT uses to make a market purchase of 200,000 shares in the entity. In the separate financial statements of the EBT the shares will be shown as an asset. In the consolidated financial statements, the shares will be accounted for as treasury shares, by deduction from equity. In […]

Group share scheme (fresh issue of shares) On 1 July 2013 an employee of S Limited, a subsidiary of the H plc group, is awarded options under the H group share scheme over 3,000 shares in H plc at £1.50 each, exercisable between 1 July 2018 and 1 July 2019, subject to certain performance criteria being met in the three years ending 30 June 2016. […]

Cash-settled scheme not settled by receiving entity On 1 July 2013 an employee of S Limited, a subsidiary of the H plc group, is awarded a right, exercisable between 1 July 2018 and 1 July 2019, to receive cash equivalent to the value of 3,000 shares in H plc at the date on which the right is exercised. Exercise of the right is subject to […]

Recovery of employment tax on share-based payment from employee On 1 January 2013, an entity granted an executive an award of free shares with a fair value of €100,000 on condition that the executive remain in employment for three years ending on 31 December 2015. In the jurisdiction concerned, an employment tax at the rate of 12% is payable when the shares vest, based on […]

Mandatory investment by employee of cash bonus into shares with mandatory matching award by employer On 1 January 2013 an employee is told that he is to participate in a bonus scheme which will pay £1,000 if certain performance criteria are met for the year ended 31 December 2013 and he remains in service. The bonus will be paid on 1 January 2014. 50% will […]

Mandatory investment by employee of cash bonus into shares with discretionary matching award by employer On 1 January 2013 an employee is told that he is to participate in a bonus scheme which will pay £1,000 if certain performance criteria are met for the year ended 31 December 2013. The bonus will be paid on 1 January 2014. 50% will be paid in cash and […]

Discretionary investment by employee of cash bonus into shares with no matching award On 1 January 2013 an employee is told that he is to participate in a bonus scheme which will pay £1,000 if certain performance criteria are met for the year ended 31 December 2013. The bonus will be paid on 1 January 2014. 50% will be paid in cash and the employee […]

Discretionary investment by employee of cash bonus into shares with mandatory matching award by employer On 1 January 2013 an employee is told that he is to participate in a bonus scheme which will pay £1,000 if certain performance criteria are met for the year ended 31 December 2013. The bonus will be paid on 1 January 2014. 50% will be paid in cash and […]

Discretionary investment by employee of cash bonus into shares with discretionary matching award by employer On 1 January 2013 an employee is told that he is to participate in a bonus scheme which will pay £1,000 if certain performance criteria are met for the year ended 31 December 2013. The bonus will be paid on 1 January 2014. 50% will be paid in cash and […]

Award with independent market conditions and non-market vesting conditions An entity grants an employee 100 share options that vest after three years if the employee is still in employment and the entity achieves either: cumulative total shareholder return (TSR) over three years of at least 15%, or cumulative profits over three years of at least £200 million. The fair value of the award, ignoring vesting […]