For equity-settled plans, the service is measured at grant-date fair value and expensed over the vesting period. For cash-settled plans, the liability is remeasured at each reporting date.
Source: TFRS 2
Related terms
Employee benefits (TAS 19)The standard governing accounting for short- and long-term benefits provided to employees in exchange for their services.Fair valueThe price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.Statement of changes in equityThe statement showing the changes in each component of equity during the period.Accounting estimatesThe determination by management judgement of amounts that cannot be measured precisely, such as provisions, useful lives, expected credit losses and fair values.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Accrual basis of accountingThe principle of recording transactions as income, expenses, assets and liabilities in the period in which they occur, rather than when cash is received or paid.
Last updated: October 31, 2026 · This definition is for general information only.