Share-based Compensation Reviewer  The compensation is equal to

the fair value of the share

 Share-based compensation plan is a options on the date of grant
compensation arrangement
established by the entity whereby the
entity’s employees shall receive
equity shares in exchange for their
services or the entity incurs liabilities
to the employees in amounts based
on the price of its shares.
 Compensation plans are a common
feature of employee remuneration for
directors, senior executives and other
key employees.

PFRS 2 Measurement principles and

specific requirements for accounting of
the following share-based compensation:

a. Equity settled
 The entity issues equity
instruments in consideration
for services received (e.g
share options)
b. Cash settled
 The entity incurs liability for
services received and the
liability is based on the
entity’s equity instruments
(e.g share appreciation
rights)

 Share options are conceived as

additional compensation on the part
of senior officers and other key
employees.
 Enable them to acquire shares of the
entity at a specified price during a
definite period upon fulfilment of
certain conditions.

Share options is measured following two

methods

a. Fair value method