Briefly describe the similarities and differences between equity settled share based payments and ca

1. Equity-settled share-based payment and cash-settled share-based payment are two different settlement transaction methods, and there is no similarity between the two.

2. There are three differences between equity-settled share-based payment and cash-settled share-based payment:

1. The characteristics of the two are different:

1) Characteristics of equity-settled share-based payment: Equity-settled share-based payment in exchange for employee services that can be exercised immediately after grant shall be included in the relevant costs or expenses according to the fair value of the equity instrument on the grant date, and the capital reserve shall be increased accordingly.

2) Characteristics of cash-settled share-based payment: Cash-settled share-based payment with exercisable rights immediately after grant shall be included in the relevant costs or expenses at the fair value of the liabilities assumed by the enterprise on the grant date, and the liabilities shall be increased accordingly.

2. The confirmation points of the two are different:

1) Recognition point for equity-settled share-based payment: Recognition as equity.

2) Recognition point for cash-settled share-based payment: Recognized as a liability.

3. The overview of the two is different:

1) Overview of equity-settled share-based payment: refers to a transaction in which an enterprise settles with shares or other equity instruments as consideration for obtaining services.

2) Overview of cash-settled share-based payment: refers to a transaction in which an enterprise undertakes to calculate and determine the obligation to deliver cash or other assets on the basis of shares or other equity instruments for the acquisition of services or goods.

1) Date of grant.

Except for share-based payments with immediate exercisable rights, the company does not do accounting treatment on the grant date.

2) Waiting period for each balance sheet date.

At each balance sheet date during the waiting period, the enterprise shall include the services provided by employees or other parties in the cost of expenses, and the equity-settled share-based payment shall recognize the owner's equity (included in the capital reserve - other capital reserve), while the cash-settled share-based payment shall be recognized as a liability (included in the remuneration payable to employees).

Equity-settled share-based payments:

Borrow: Administrative expenses.

Credit: Capital Reserve – Other Capital Reserve.

Cash-settled share-based payments:

Borrow: Administrative expenses.

Credit: Employee Compensation Payable.

3) When exercising the option:

Equity-settled share-based payments:

Borrow: Bank deposit.

Capital Reserve – Other capital reserves.

Credit: Equity. Capital Reserve – Equity Premium.

Cash-settled share-based payments:

Borrow: Employee remuneration payable.

Credit: Bank deposits.

4) After the vesting date.

For equity-settled share-based payments, no adjustments will be made to recognized costs and total owners' equity after the vesting date.

For cash-settled share-based payments, the enterprise will no longer recognize costs and expenses after the vesting date, and the change in the fair value of liabilities (employee remuneration payable) should be included in profit or loss for the current period (fair value change gain or loss).

Answers]: a, d

There are two most commonly used instruments for cash-settled share-based payments: analogue** and cash** value-added rights. There are two most commonly used instruments for equity-settled share-based payments: restrictive and restrictive.

Answer]: a, b, c, d

There are two types of share-based payments settled in the form of cash and cash: simulation** and cash** value-added rights, and the virtual ** or performance** granted by the enterprise is also a cash-settled share-based payment.