Question Two

Bara Plc $($Bara$)$ granted share options to its $354$ employees on $1^{st}$ January, $2019.$ Each employee will receive $1,000$ share options provided they continue to work for Bara Plc for $3$ years from the grant date. The fair value of each option at the grant date was TZS$.210.$

The actual and expected staff movement over the $3$ years to ${31}^{st}$ December, $2021$ is provided below:

$2019$: $25$ employees left and another $40$ are expected to leave over the next two years.

$2020$: A further $15$ employees left and another $20$ were expected to leave the following year.

$2021$: $12$ employees left.

Required:

a$)$ Calculate the charge to Bara PIc's statements of profit or loss for the years ending ${31}^{st}$ December, $2019,{31}^{st}$ December, $2020$ and ${31}^{st}$ December, $2021.$

b$)$ Explain how the recognition and measurement of a share based payment would have been different if it was to be settled in cash rather than equity in accordance with IFRS $2-$ share based payments.

c$)$ Discuss the purpose of the framework.