IFRS 2 Share Based Payment requires an expense to be recognized for goods or services received by a company. The corresponding entry in accounting is either a liability or equity of the company, depending on whether a transaction is settled in cash or equity shares. Share based payment arrangements are often subject to vesting conditions which must be satisfied over a vesting period. Sycamore Plc. granted share options to its 300 employees on 1 October 2016. Each employee will receive 400 share options on condition that they continue to work for Sycamore Plc. for four (4) years from the grant date. The fair value of each option at grant date was K2.35. The actual and expected staff movement over the four (4) years to 30 September 2020 is as follows: Year to 30 September 2017 20 employees left and another 50 employees were expected to leave over the next three years. Year to 30 September 2018 A further 25 employees left and another 40 were expected to leave over the next two years. Year to 30 September 2019 A further 15 employees left and another 20 employees were expected to leave the following year. Year to 30 September 2020 25 employees left. 8 Required: Explain the effect of the share options on the financial statements of Sycamore Plc. for the four years to 30 September 2020. Your explanation should incorporate principles of recognition and measurement. (11 marks)