| Initial measurement – instruments with contingent settlement provisions |
Treated as a financial liability. |
Treated as a financial liability if the contingency is highly likely. |
| Measurement of debt and equity components |
Residual method: Measure debt component first at net present value of future cash flows. The residual balance to equity. |
Policy choice:
- Residual method
- Zero-equity method: Equity measured at zero and the balance to liabilities.
|
| CSOP forfeitures |
Measure forfeitures upfront as a change in estimate. |
Policy choice to measure forfeitures upfront as a change in estimate or later as they occur. |
