Our comments expressed the following principal conclusions:
Deloitte Touche Tohmatsu Principal Conclusions on Share-Based Payments
- Share-based payments should be measured and recognised at fair value. Share-based payments to employees represent an element of compensation. The most relevant measurement of that compensation is fair value.
- Share-based payments should be expensed over the period that the related service is provided.
- Share-based payments should be measured at grant date, being the date the parties are committed to the transaction.
- No adjustment should be made to fair value for vesting conditions.
- Expensing should stop if the employee leaves and consequently stops providing services.
- Minimum value should be used for unlisted entities.
- For transactions involving the exchange of goods directly for equity, a measurement date does not occur until the exchange actually occurs (not at an earlier agreement date).