Wednesday, 10 December 2014

Example of equity settled share based payment

What is equity settled share based payment

When Organization receives goods and services against equity (share or share options, ). In equity settled share based payment organization does not pay any cash in any stage.

Example of equity settled share based payment


Hamada & Co purchased a plant costing $ 100,000 from Kazim and issued 10,000 ordinary share having face value $ 10. In this example the Kazim may sell these shares at the open market or hold such shares for dividend or capital appreciation.

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