Share option expense template
An Excel template for the IFRS 2 expense on employee share options – built for start-ups and other unlisted companies with an option scheme. It values each grant at the grant date, spreads the cost over the vesting period and gives you the expense, the journals and the figures for the share-based payment note.
What it does
Values an option at the grant date with the Black-Scholes model from the share price, exercise price, expected term, volatility, risk-free rate and dividend yield – or uses your own valuation – with guidance on each input for an unlisted company.
Spreads the cost over the vesting period for up to 20 grants: cliff, annual instalments, a one-year cliff then monthly vesting (each instalment treated as a separate grant), or vesting only on a sale or listing of the company.
Reflects expected and actual leavers: unvested options are forfeited and their expense reversed, while vested options stay outstanding until they are exercised or lapse.
Calculates the expense for the year as the true-up of the cumulative expense, and the expected expense for the next years for budgeting.
Produces the option movement table with weighted average exercise prices, the weighted average share price at exercise, the range of exercise prices and remaining contractual life, the fair value inputs, the share-based payment reserve, journals and draft wording for the note.
What you get
One Excel workbook (.xlsx) with an Instructions tab, the blank template and a completed worked example for a fictitious software start-up with six grants, a leaver, exercises and exit options.
Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.
Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.
Scope
Equity-settled options over the company's own shares, one reporting year per copy. Cash-settled awards, market conditions (enter your own fair value), modifications and cancellations, employer social security and deferred tax on options are outside its scope.
Designed for small and medium-sized businesses reporting under IFRS Accounting Standards. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab.
