Document ID: chunk:federal_register_of_legislation:F2022C00493:reg:4:p1
Version: federal_register_of_legislation:F2022C00493
Segment Type: reg
Provision Reference: reg 4 (pt 1/2)
Character Range: 271973–280346

4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             100 shares × CU2 × 4/4 – (CU50 + CU50 + CU50)  50   (50)   –
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Total                                          200  (200)  –
The journal entries recorded by the entity are as follows:
During the vesting period
Accumulated compensation expense recognised over the vesting period
Dr Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    200
Cr Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    200
Recognition of the tax liability(a)
Dr Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     400
Cr Liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 400
Settlement of tax obligation
Cash paid to the tax authority on the employee's behalf at the date of settlement
Dr Liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  400
Cr Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      400
    (a) The entity considers disclosing an estimate of the amount that it expects to transfer to the tax authority at the end of each reporting period. The entity makes such disclosure when it determines that this information is necessary to inform users about the future cash flow effects associated with the share-based payment.

Accounting for a modification of a share-based payment transaction that changes its classification from cash-settled to equity-settled
IG19B The following example illustrates the application of the requirements in paragraph B44A of AASB 2 to a modification of the terms and conditions of a cash-settled share-based payment transaction that becomes an equity-settled share-based payment transaction.

IG Example 12C
Background
On 1 January 20X1 an entity grants 100 share appreciation rights (SARs) that will be settled in cash to each of 100 employees on the condition that employees will remain employed for the next four years.
On 31 December 20X1 the entity estimates that the fair value of each SAR is CU10 and consequently, the total fair value of the cash-settled award is CU100,000. On 31 December 20X2 the estimated fair value of each SAR is CU12 and consequently, the total fair value of the cash-settled award is CU120,000.
On 31 December 20X2 the entity cancels the SARs and, in their place, grants 100 share options to each employee on the condition that each employee remains in its employ for the next two years. Therefore the original vesting period is not changed. On this date the fair value of each share option is CU13.20 and consequently, the total fair value of the new grant is CU132,000. All of the employees are expected to and ultimately do provide the required service.
For simplicity, this example assumes that none of the employees' compensation qualifies for capitalisation as part of the cost of an asset.
Application of requirements
At the modification date (31 December 20X2), the entity applies paragraph B44A. Accordingly:
(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                            from the date of the modification, the share options are measured by reference to their modification-date fair value and, at the modification date, the share options are recognised in equity to the extent to which the employees have rendered services;
(b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                            the liability for the SARs