Redwood Co., a fast-growing outdoors equipment startup, uses IFRS. To raise capital, it is considering the issuance of convertible bonds. It is also contemplating the establishment of share-based compensation plans to pay and motivate its key employees. Regarding the accounting for dilutive securities and share-based compensation plans, answer the following questions:

QTo provide long-run incentives for its top management, Redwood Co. is considering the adoption of share-option plans or restricted-share plans. What are the advantages of using restricted shares compared with share options?