Refer to the situation described in P 19-2. Assume Pastner prepares its financial statements using International Financial Reporting Standards (IFRS).

P 19 -2

Vesting Date....................... Amount Vesting ...............Fair Value per Option

Dec. 31, 2018 .....................................25% ...............................$3.50

Dec. 31, 2019 .....................................25% .................................$4.00

Dec. 31, 2020..................................... 25% .................................$4.50

Dec. 31, 2021 ......................................25% .................................$5.00

Required:

How might your responses to requirement 1 and requirement 2 differ using IFRS? Explain.