Air France-KLM (AF), a Franco-Dutch company, prepares its financial statementsn according to International Financial Reporting Standards. AF's financial statementsn and disclosure notes for the year ended December 31, 2015, are available in Connect. This material is also available under the Finance link at the company's website (www.airfranceklm-finance.com).n
Required:n
1. AF provides share-based compensation in the form of PPSs, Phantom Performance Shares. Recipients receive compensation in what form? How are such plans reported in the balance sheet? [Hint: See Note 30: "Share-Based Compensation."] Are AF's PPSs cliff vesting or graded vesting? How does accounting differ between U.S. GAAPn
 and IFRS for graded-vesting plans?n
2. What amount(s) of earnings per share did AF report in its income statement for the year ended December 31, 2015? If AF used U.S. GAAP, would it have reported EPS using the same classification?