Document ID: chunk:federal_register_of_legislation:F2022C00493:reg:4:p2
Version: federal_register_of_legislation:F2022C00493
Segment Type: reg
Provision Reference: reg 4 (pt 2/2)
Character Range: 279640–283909

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 is derecognised at the modification date; and
(c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                            the difference between the carrying amount of the liability derecognised and the equity amount recognised at the modification date is recognised immediately in profit or loss.
At the modification date (31 December 20X2), the entity compares the fair value of the equity-settled replacement award for services provided through to the modification date (CU132,000 × 2⁄4 = CU66,000) with the fair value of the cash-settled original award for those services (CU120,000 × 2⁄4 = CU60,000). The difference (CU6,000) is recognised immediately in profit or loss at the date of the modification.
The remainder of the equity-settled share-based payment (measured at its modification-date fair value) is recognised in profit or loss over the remaining two-year vesting period from the date of the modification.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Dr.      Cumulative  Cr.      Cr.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Expense  expense     Equity   Liability
Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Calculation                                                                                                                                                                                                                                                  CU       CU          CU       CU