Syllabus B13. Share-based payment 16 / 19

• Understand the term ‘share-based payment’.
• Discuss the key issue that measurement of the transaction should be based on fair value.
• Explain the difference between cash settled share based payment transactions and equity settled share based payment transactions.
• Identify the principles applied to measuring both cash and equity settled share-based payment transactions.
• Compute the amounts that need to be recorded in the financial statements when an entity carries out a transaction where the payment is share based.
Share-based payment