Provide an example of a cash-settled share-based payment.
SOLUTION AT Australian Expert Writers
(a) Provide an example of a cash-settled share-based payment.
(b) Consider the following situation for Saddle Ridge Ltd and record general journal
entries in accordance with the requirements of AASB 2.
On 1 July 2018, Saddle Ridge Ltd grants 500 shares to its senior sales executive,
conditional upon the executive remaining in its employ for two years. At the end of
the two years, the executive can choose to receive a cash payment equal to the value
of 500 shares, or to receive the 500 shares. The fair value of the shares is as follows:
$15 (1 July 2018), $20 (30 June 2019) and $23 (30 June 2020). The executive is still
employed by Saddle Ridge on 30 June 2020 when the rights vest. (LO2, LO9)
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