QUESTION 1:

What are the three types of share-based transactions specifically addressed by AASB 2?

QUESTION 2:

If an employee is provided with share options that will not vest for five years, when will

the expense related to the granting of the share options be recognised?

QUESTION 3:

Cottesloe Ltd has granted its managing director 50 000 share options conditional upon him

remaining with the company for a further five years. In addition, the share price must increase

by 50 per cent before the end of year 5.

REQUIRED

How should Cottesloe Ltd account for the above vesting conditions?