Document ID: chunk:federal_register_of_legislation:F2022C00493:reg:59b:p3
Version: federal_register_of_legislation:F2022C00493
Segment Type: reg
Provision Reference: reg 59B (pt 3/25)
Character Range: 63432–66792

employee) agree to a share-based payment arrangement, being when the entity and the counterparty have a shared understanding of the terms and conditions of the arrangement. At grant date the entity confers on the counterparty the right to cash, other assets, or equity instruments of the entity, provided the specified vesting conditions, if any, are met. If that agreement is subject to an approval process (for example, by shareholders), grant date is the date when that approval is obtained.
intrinsic value                                  The difference between the fair value of the shares to which the counterparty has the (conditional or unconditional) right to subscribe or which it has the right to receive, and the price (if any) the counterparty is (or will be) required to pay for those shares. For example, a share option with an exercise price of CU15,[6]  on a share with a fair value of CU20, has an intrinsic value of CU5.
market condition                                 A performance condition upon which the exercise price, vesting or exercisability of an equity instrument depends that is related to the market price (or value) of the entity's equity instruments (or the equity instruments of another entity in the same group), such as:
                                                 (a) attaining a specified share price or a specified amount of intrinsic value of a share option; or
                                                 (b) achieving a specified target that is based on the market price (or value) of the entity's equity instruments (or the equity instruments of another entity in the same group) relative to an index of market prices of equity instruments of other entities.
                                                 A market condition requires the counterparty to complete a specified period of service (ie a service condition); the service requirement can be explicit or implicit.
measurement date                                 The date at which the fair value of the equity instruments granted is measured for the purposes of this Standard. For transactions with employees and others providing similar services, the measurement date is grant date. For transactions with parties other than employees (and those providing similar services), the measurement date is the date the entity obtains the goods or the counterparty renders service.
performance condition                            A vesting condition that requires:
                                                 (a) the counterparty to complete a specified period of service (ie a service condition); the service requirement can be explicit or implicit; and
                                                 (b) specified performance target(s) to be met while the counterparty is rendering the service required in (a).
                                                 The period of achieving the performance target(s):
                                                 (a) shall not extend beyond the end of the service period; and
                                                 (b) may start before the service period on the condition that the commencement date of the performance target is not substantially before the commencement of the service period.
                                                 A performance target is defined by reference