International Financial Reporting Standard no2 requires companies to value their share plan awards and then charge this “cost” (number of shares under award multiplied by the IFRS2 Fair Value) to income.
Our approach to both forms of award is underpinned by the Black-Scholes option pricing formula. Where market-based performance measures are used this is supplemented by a Monte-Carlo simulation process which models the likely outcomes based on the volatility of your company’s and your comparator companies’ TSRs and the correlation between your company data and your comparators'.
Our IFRS2 Fair Value Service is a stand-alone service; you do not need to be a SchemeTrack or IMTrack client to use the service.
For awards with share price based targets
For awards with non-share price related targets
(or no targets)