S.B.P are made to employees

Without vesting condition

In such case, entity should recognise employee benefit expenses immediately on the grant date at the fair value of shares on grant date because the services rendered by employees can’t be determined in most cases.

Journal entries

And after at the end of the year, employee benefit expenses to be written off in P&L.

Important:

There are some restrictions attached with such share-based payment like not selling shares for till certain period say 3 years, it effects the fair value of equity shares, so in such case fair value to be determined with taken consideration of such restrictions.